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Do cashier's checks become stale dated?

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Question: 
Do cashier's checks become stale dated?
Answer: 

In a word, NO!

The six-month "stale date" rule in UCC Section 4-404 only applies to checks drawn on checking accounts. It does not apply to cashier's check or certified checks. And it is permissive as to customer checks (no obligation to pay a check over 6 months old, but may pay it if in good faith).

That said, we see a lot of cashier's checks with legends on them reading "not valid after xx days" or something like that. To the extent that these legends encourage rapid presentment, they're OK. But a bank would be ill-advised to refuse payment on its cashier's check if the sole reason is that it's aver 6 months old.

Unclaimed cashier's checks escheat as abandoned property in most states. At that point the drawee bank can refer presenters to the place the funds now reside.

And of course there is the matter of lost, stolen and destroyed cashier's checks that acts to strongly encourage holders of these items to get them paid before 90 days have elapsed since the issuing date.

First published on BankersOnline.com 06/16/03

First published on 06/16/2003

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