What is the time limit on cashing a check that you wrote to a business? You write a check and account for it in your ledger b...

Full Question:

What is the time limit on cashing a check that you wrote to a business? You write a check and account for it in your ledger but the business cashes the check over 2 months later and causes your account to be overdrawn and is threating to send you to collections over it. What can you do?
08/28/2007   |   Category: Debts and Credit   |   State: Texas   |   #8278

Answer:

The bank may cash a stale check as long as it does so in good faith, meaning that it has no reason to know the account holder doesn't want the check paid. Section 4-404 of the UCC states as follows:

U.C.C. - § 4-404. BANK NOT OBLIGED TO PAY CHECK MORE THAN SIX MONTHS OLD.

..."A bank is under no obligation to a customer having a checking
account to pay a check, other than a certified check, which is
presented more than six months after its date, but it may charge its
customer's account for a payment made thereafter in good faith..."