Statute of Limitations & Uncashed Checks

Checks are payable on demand when presented to the bank.

Although often left at the bank's discretion, the Federal Deposit Insurance Corporation sets limits on when banks are no longer required to cash a check. The laws are to protect the bank as well as the account holder.

Stale Dated Check

Checks that are not presented for payment within six months are stale-dated checks. Once a check becomes stale-dated, the bank has the legal authority to refuse to cash or deposit the check. When a bank does cash a check after six months, the bank verifies that the account holder wants the check cashed.

Postdated Check

Legally, banks may cash postdated checks. To prevent a bank from cashing a check before that date written on it, the account holder must give the bank reasonable notice of the postdated check. The account holder is responsible for any fees that may occur because the check holder cashed the check before the agreed-upon date.

Undated Check

If a check writer does not put a date on a check, the UCC considers the check to be dated for the day the check was written. When a check is not released immediately to the check holder, the UCC consider the check date to be the date the the check holder became in possession of the check.

References

• FairDebtCollection.com: U.C.C. - Article 3 - Negotiable Instruments and U.C.C. - Article 4 - Bank Deposits and Collections
• Cornell University Law School: U.C.C. - Article 3-113 - Date of Instrument
• Financial Web: Be Careful with Postdated Checks

Resources

• Federal Deposit Insurance Corporation: Consumer Protection