In your communication, state that you have an expired, uncashed check and would like it reissued. Offer to return the original check after writing “VOID” in large letters across the front. A check is considered “stale-dated” after a certain period, which affects a bank’s obligation to honor it. Under the Uniform Commercial Code (UCC), a bank is not required to pay a standard business or personal check presented more than six months after its issue date. Some companies may print a shorter validity period, such as “void after 90 days,” on the check itself. Business owners or accountants may come across stale checks they misplaced or forgot to cash.
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It might be worth checking with your bank or financial institution to get a better sense as to the fees you could get charged. A bank or financial institution is required to cash certified cheques and cashiers cheques even if they’re more than six months old. Make sure you allow more than enough time for the cheque to reach the appropriate person, vendor or merchant. This is especially important to make sure you make payment by the due date if you’re mailing the cheque.
Update Accounting Records
Since our founding in 1996,SAFEChecks has NEVER had a check replicatedor used in a check fraud scam. Robert Triffin bought those checks and filed suit against Pomerantz. As you will read in the New Jersey Appellate Court case between Robert Triffin and Cigna Insurance, under the UCC a Holder can force a company to pay them the face value of the check. While the above case clearly illustrates what a Holder in Due Course is, the case does not deal with check security features, or the lack thereof. Typically, the rules for money orders are provided when you purchase them. Let us clear up the mystery by explaining what you need to know about old or “stale” checks and what you can do if you have one.
ROBERT J. TRIFFIN V. SOMERSET VALLEY BANK & HAUSER CONTRACTING COMPANY
These reports must include detailed information about the outstanding checks and the steps taken to contact the owners. The receiver (drawee) cannot cash the check from the bank as the issuer already mention the How to Invoice as a Freelancer effective date. The bank will not withdraw the cash even the account has enough balance. If they need the cash early, they should bring back the check and ask the issuer to renew with an early date. Under the provisions of the Uniform Commercial Code, banks are not obligated to honor stale-dated checks and retain the discretion to return them to the issuing bank as unpaid instruments.
- Checks that have been outstanding for over six months are considered “stale” and cannot be cashed.
- If a bank does elect to cash or deposit a check for you, this does not mean the balance of the check will be immediately available.
- The first step is to identify all checks issued accurately but remain uncashed or unclaimed.
- Make sure to review your bank statement to ensure no checks you’ve written go stale.
- Some institutions may still honor them based on customer relationships or risk assessments.
Stale checks are concerning for banks as considerable time has gone by between the check and payment date. Therefore, it causes suspicion on why the payer failed to present the check for that long. As mentioned, there are several regulations that require banks to take action against these types of checks. Some banks may, however, also check with the payer before dishonoring the check. In the United States, the Uniform Commercial Code (UCC) does not require banks to cash checks older than six months.
Jesse McMurray, Commonwealth Title Services, Inc., Weber City, VA
A stale, or stale-dated, is an old check that has not been cashed for over six months. Even though banks or other financial institutions may allow you to deposit or cash it, they’re not obligated to do so by law. For example, if the check is a certified check or a cashier’s check, it may still be cashed even if it’s stale-dated. Additionally, some states have laws that require banks to honor stale-dated checks under certain circumstances. But in general, it’s best to assume that a stale dated checks stale-dated check will not be cashed.
J. Clay Cole, Coventry Escrow and Title Company, LLC, Memphis, TN
A written notice is effective for six months, while an oral notice is valid for 14 calendar days unless confirmed in writing. This notice acts as a temporary stop-payment order, and if the bank pays the check before that date despite the notice, it may be liable for any resulting losses. Writing a post-dated check is not an illegal act, but the law treats it differently than many people assume.
The payer can do this by writing “void” across the face of the check and keeping a record of the voided check. This will help prevent the original check from being accidentally cashed. At this point, you’ll prepare reports for each state where unclaimed property exists.
What Is a Stale-Dated Cheque?
If you’re unsure about cashing a stale-dated check, you can consider requesting a replacement check or using a different payment method. Remember, it’s always better to err on the side of caution when dealing with stale-dated checks. Even with an expired check, the issuing company is still legally required to pay the money it owes.
All have in-depth knowledge and experience in various aspects of international banking. In particular, they have expertise in banking for foreigners, non-residents, and both foreign and offshore companies. In fact, QuickBooks GlobalBanks IQ even helps non-resident, foreign & offshore entities open bank accounts. Below are a few of the most common questions we receive from people looking into what slate-dated checks are. If you have further questions you would like to ask our team, don’t hesitate to get in touch. To protect you from someone depositing a cheque without your permission, include a note that states “for deposit only to the account of payee”.