A $100 cashier's check, dated from June of 2011, has never been cashed. A now-defunct flower shop had obtained it for payment to a local attorney who happens to sit on the bank's board and who does real estate work for the bank.
The flower shop is now out of business. The proprietor has moved to parts unknown. The attorney offices in our building. We see him every day.
The question has been posed: Do we (a) ask the attorney to review his records, cutting him a replacement check if he can't find anything, or (b)do we send it on to the State come next July and let them sort it out?
Obviously the hypothetical and the practical solutions could differ here in a small town bank. The fact that the payee is known to us, derives ongoing business from us, and sits on our board really shouldn't matter.
The proper course of action would be to send it on to the State.
The practical course of action is to replace the check and clear our books.
The practical solution does not bear up to scrutiny though.
What if more than one person possessed the same name as our attorney/director's as appears on the check? Not likely in this case but not impossible either to submit a replacement check to the wrong "John Doe."
What if the amount had been substantial? A hundred bucks is no big deal but what if the check was for thousands of dollars?
If the bank was to replace the check and the purchaser then came in the bank wanting to reclaim the funds, saying that he'd changed his mind two years ago about paying the attorney, then where would we be?
We're presently asking the attorney to check into this matter in his office records before proceeding.
Any advice will be gratefully received.
http://www.window.state.tx.us/up/reporting.html