I too have encountered this type of hassle at several different banks; and I comprehend that a check is an instrument of the bank ordering the bank to pay the payee. Is there a statute in the USC or UCC that states this fact clearly so that it can be brought up in conversation when the teller refuses to execute the the order without a fee?
I have tried finding something solid to back this up and have only found information to the contrary. Such as,
Question: Can a bank charge a check cashing fee to non-customers?
Answer: Yes. Institutions are allowed to charge a check cashing fee. The Department issued a press release on August 31, 2001 regarding this matter. Since then, the court ruled that the Texas law was not enforceable and therefore the institutions could continue the practice of charging a fee for cashing their checks.
source:
http://www.dob.texas.gov/exec/faq.htm
I'm not doubting that the bank is required to cash their instrument, I'm just looking for a way to prove it to them.