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Question & Answer
Question: What constitutes a stale date?
Answer: Many financial institutions have as their policy that a check over six months old is stale dated. The UCC says you are under no obligation to accept a check, other than a certified check, to be charged against your customer's account that is presented more than six months after its date.
But many overlook the last part of the UCC Section 4-404 that says a bank may charge its customer's account for a payment made thereafter in good faith. Each case should be considered individually.
To make life easier, however, most of the time tellers are instructed not to accept checks over six months old EXCEPT for U.S. Government checks, which are good for a year.
Editor's Note: The new Uniform Commercial Code (UCC) addresses both of the above matters-and in the most part in the cases of claims is more favorable to the financial institutions than the old UCC. In many cases, it puts more responsibility on the customer, especially in cases of negligence. States which have already adopted the new UCC include AZ, AR, CA, CT, FL, HI, ID, IL, KS, LA, MI, MN, MS, MO, MT, NE, NM, ND, OK, PA, UT, VA, WV, and WY. Alaska, Indiana, Nevada, Oregon and Washington will also be on board by or before July, 1994.
Copyright © 1993 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 4, No. 4, 9/93
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