Do Checks Expire If Not Deposited?
Understand the lifespan of paper checks. Learn when they expire, why, and how to properly handle checks that are no longer current.
A check is a written instruction to a bank, authorizing payment from one person’s account to another. While checks offer a convenient way to conduct transactions, their validity is not perpetual. Understanding how long a check remains negotiable is important for both those who issue them and those who receive them. This article explores the typical lifespan of various types of checks and the actions to take when a check approaches or passes its expiration.
Standard Expiration Periods
Most personal and business checks maintain a standard validity period of six months from their issue date. This is often noted on the check, such as “Void after 6 months” or “Not valid after 180 days.” This timeframe helps financial institutions manage operations and reconcile accounts efficiently.
The Uniform Commercial Code (UCC) provides guidance on this. UCC Section 4-404 states that banks are not obligated to pay a check presented more than six months after its date, although they may choose to do so in good faith. This provision aims to prevent old outstanding liabilities from indefinitely impacting account balances.
The six-month period helps ensure financial records remain current and funds are not held indefinitely awaiting a forgotten check. For the issuer, it provides a reasonable expectation that funds will either be drawn upon within that time or become available for other uses. For the recipient, it encourages prompt deposit of funds.
Different Types of Checks
While personal and business checks typically expire after six months, other forms of checks operate under different validity rules. Cashier’s checks, certified checks, and teller’s checks are generally considered to have no hard expiration date. These instruments are drawn on the bank’s own funds, which makes them less susceptible to the standard six-month limitation.
However, even these types of checks are not valid indefinitely if left uncashed. After a prolonged period of inactivity, they may become subject to state escheat laws. These laws require financial institutions to turn over unclaimed property, including uncashed checks, to the state treasury as abandoned property.
Money orders also tend to have an indefinite nature regarding expiration, similar to cashier’s checks, but they can eventually fall under state escheatment rules if they remain uncashed for several years. Government checks, such as tax refunds or Social Security payments, often come with their own specific expiration periods. These periods, which can be one year or longer, are usually printed directly on the check by the issuing government agency.
Traveler’s checks represent another category with indefinite validity. They are primarily designed for use over extended periods, often during international travel, and typically do not expire.
Implications of Stale-Dated Checks
A check presented for payment after its stated or common validity period is a “stale-dated check.” Banks are generally not obligated to honor these instruments; they are not compelled to pay a check presented more than six months after its date.
Despite this non-obligation, a bank may still choose to process a stale-dated check if it does so in good faith, especially if the check writer’s account has sufficient funds. The bank might contact the check issuer for authorization before proceeding. If the bank processes the check, the funds will be deducted from the issuer’s account.
Conversely, if the bank declines to honor a stale-dated check, it will be returned unpaid. While the check itself may no longer be negotiable, the underlying debt or financial obligation for which the check was originally issued typically remains valid. The check merely represents the payment instrument, not the debt itself.
What to Do with an Expired Check
If you have received a check that has passed its validity period, contact the check’s issuer. Explain that the check is stale-dated and request a new one.
Confirm with the issuer that the original obligation for which the check was written is still outstanding and has not been fulfilled through other means. Attempting to deposit a significantly stale check without prior communication may result in the check being returned unpaid, and your bank might charge a fee for the returned item.
If you issued an expired check, review your bank statements to determine if the original check ever cleared your account. If the recipient contacts you requesting a new check, and the original obligation remains, issuing a replacement is the appropriate course of action.
When issuing a new check, it is prudent to place a stop payment order on the old check. This instruction to your bank prevents the original check from being cashed or deposited, thereby avoiding a potential double payment. Stop payment orders usually involve a fee and are typically valid for six months, though some banks offer extended periods. You will need the check number, date, and exact amount to initiate this order with your financial institution.