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Home >> Checks/Money Orders
Liability for Expiration Dates on Checks
I have seen that banks may refuse to honor checks that are more than six months old, but must they refuse checks that have an expiration date on them, and are past that date? If they don't, are they liable to reimburse the amount?
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 Some banks' deposit contracts include language disclaiming any responsibility for such captions on checks, unless the depositor and the bank agree in a separate writing that the expiration dates will be controlling. Banks do not, as a matter of routine, examine the date on a check; if checks on a specific account are subject to a side agreement that dates will be checked looking for stale checks, the bank would likely impose a surcharge for the service. Without a side agreement, it is doubtful that a bank could be held liable for paying a stale check, even one with "void after XX days" clearly printed on its face. If the bank does separately agree to verify check dates and to refuse payment on those that are stale, the bank could incur liability if it pays a stale check, especially if that means the bank bounces another more recent check for insufficient funds.
Published on BankingQuestions.com 12/10/08
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