Undated security cheque is not returned by lender


Hi,

I have taken a home loan from a bank a year back. During the home loan process, bank has asked for undated security cheque for entire loan amount and one more cancelled cheque. Recently, i have closed the loan account by paying all the due amount. I have got original property documents and no objection letter, but have not received undated cheque. They have informed that cheque is misplaced and will send it to me once they find it. Its been a month, but there is no proper response from bank.

1) Is it mandatoty to collect the undated security cheque which was for entire loan amount?

2) If bank has lost it, Is it sufficient to collect a letter from bank stating that they have lost the cheque and not going to realize it in the future?

Please advice.

 
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1. sent a legal notice and demand back the security cheque on the ground of closure of loan account. Otherwise, there is always apprehension of misuse. Also, collect certificate of full and final payment of loan amount and interest thereon.  2. Yes.


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FIN

Has the lender accepted that IT has misplaced the cheque in writing?

 

 
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Lawyer

Do you have the copy of the cheque? You can write an application to the bank officials and give instruction to the bank to stop payment against the cheque no. & also mention the reason to do so. Furnish a copy of the supporting documents along with the application to the bank.

NOTE - Giving stop payment instruction to bank does not offer you any escape route from a criminal prosecution for bouncing of your cheque.  If bank files a case against you then defend yourself in the court. I hope in this case when loan is already settled, the bank will not initiate any suit against you.


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Hi,

Thanks for suggestions.

Lender has orally told that cheque is misplaced. I am asking them to give in writing about cheque misplacement but they are still saying search is going on for cheque. But they are taking too much time(my guess is that they are not even actively pursuing this issue as loan is closed). 

I do not want to go in direction of stoping the cheque as it does not give me any protection against cheque bounce as Pawan mentioned.

 
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advocate.dma@gmail.com

Take the loan account statement. Write a letter to bank stating that the loan is completed and hence hereby requested to return the earlier collected cheque # so and so. Attach the loan statement with this letter and take the acknowledgement of this letter from Bank. After that you can issue stop payment.
 
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