What Is Considered a Stale Dated Check?

Checks serve as a common method for making payments. However, checks are not intended to remain valid indefinitely; their ability to be cashed or deposited diminishes over time.

Understanding When a Check Becomes Stale

A check is considered “stale-dated” when an unreasonable amount of time has passed since its original issue date. The Uniform Commercial Code (UCC) provides a common guideline for this, specifically Section 4-404, which states that banks are generally not obligated to honor an uncertified check presented more than six months after its date. This six-month period begins from the date written on the check itself. While this is a widely accepted standard, banks retain discretion regarding such checks.

Certified or cashier’s checks typically do not become stale-dated in the same manner as uncertified checks under the UCC. Certified checks represent a bank’s guarantee of funds, as the funds are usually set aside by the bank at the time of certification, making them a direct obligation of the bank. Other specialized checks, like U.S. Treasury checks, have different validity periods, often extending up to one year.

Bank Handling and Payee Actions

When a stale-dated check is presented, financial institutions are not obligated to honor it. However, banks do have the discretion to pay a stale check if they choose to, and if they do, the funds will be debited from the issuer’s account. More commonly, banks will return stale-dated checks unpaid.

If you are a payee holding a stale-dated check, contact the issuer directly. Requesting a new check ensures that the funds can be accessed. Attempting to deposit or cash the original stale check without prior communication with the issuer or their bank could lead to the check being returned unpaid. This can result in fees charged by your bank for processing a returned item.

Issuer Responsibilities and Unclaimed Funds

Issuers should regularly reconcile bank statements to track any outstanding checks that have not yet been cashed. If a check becomes stale-dated and remains uncashed, the funds remain in the issuer’s account.

Should a new check be required due to staleness, the issuer might consider placing a stop payment on the original stale-dated check. Banks charge a fee for stop payment orders. A written stop payment order is usually effective for six months.

If a check is never cashed, the funds may eventually become subject to unclaimed property laws, also known as escheatment laws. These laws require holders of abandoned property, including uncashed checks, to turn those funds over to the state after a specified dormancy period. This dormancy period varies by state and property type, but for uncashed checks, it is commonly between three and five years from the check’s issue date or the last contact with the payee. The purpose of these laws is to reunite owners with their property, with states acting as custodians of the funds until the rightful owner is found.