The Texas Uniform Commercial Code – Issuing Banks May Stop Payment on Teller’s Checks: University Savings Association v. Intercontinental Consolidated Cos., 751 S.W.2d 657 (Tex. App. – Houston [1st Dist.] 1988, writ granted)

Abstract

Discusses the implications of the ruling in University Savings and examines the treatment of checks issued by banks under the Uniform Commercial Code. The article concludes by agreeing with the Houston Court of Appeals decision as being technically correct but believes that the underlying policy should be examined further. The author further hopes that the Texas Supreme Court will affirm the decision in University Savings.