"Void After 30 Days": On checks, what's our liability?
by John Burnett and Ken Golliher, BOL Gurus
Question: We have a customer who is interested in having “Void After 30 Days” printed on her checks. What are the legal ramifications to the bank when a check is presented for payment to the account after that date? Are there any restrictions to the number of days that can be stated. Is this really enforceable?
I recommend you not agree to such a legend on the customer's checks. I also recommend you have something in your deposit agreements that says you won't honor any such legend unless there is a separate agreement by the bank.
If you allow the customer to have the legend, you are pretty much stuck having to review every check on the account or be willing to take a hit for any that get paid after the 30-day period. That's obviously the customer's goal.
If your deposit agreement prevents the legend and a customer uses one anyhow, it may have the effect of getting payees to cash checks promptly (which is your customer's ultimate goal, I hope), while preventing bank exposure if you fail to catch a late presentment.
I do not have anything to add to John's advice, but would encourage you to underline it twice if you are talking about a consumer account.
With a business, I might go along with the restrictive legend if they sign an agreement acknowledging the bank is not responsible for enforcing it. With a consumer, I would just encourage them to get a hobby or some other interest to occupy their spare time.
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