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Question & Answer
Question: We have issued cashier's checks for customers that have not yet cleared after 90 days. Is there a time limit on how long official checks are good? We normally send a letter to the customer asking them to negotiate the checks, and have no problem. But now we have some that are getting old and would like to clear them out. Any suggestions?
Answer: Unfortunately, they can get very, very old before you can clear them off your books. They are now an obligation on the bank, and "stale dates" don't count. The only way to get rid of outstanding official checks is to escheat them to the state, once they have reached the escheatable date, which is determined by each state. The 90 days you're thinking of may be the time you have to replace an official check under the new Uniform Commercial Code guidelines for a lost or stolen check, when the customer wants to replace it.
Copyright © 1997 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 7, No. 5, 4/97
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