Haas deposited two checks totaling $42,000 into his account at the Meridian Bank and, at the same time, purchased a $35,000 money order.
He then went to the Trump Plaza and Casino, where he received cash for the money order for gambling purposes. The next day, the two checks were returned to Meridian Bank unpaid with a notation "account closed."
The bank put a stop-payment order on the money order and refused to pay it when it was presented by Trump Plaza for payment. Trump argued that payment could not be stopped on a money order. Do you agree with Trump? Why or why not?
Trump Plaza Associates v. Haas, 692 A. 2d 86 (NJ).