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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...

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?

Category: Debts and Credit
Date: 04/07/2025
State: Texas

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..."

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Can I cash a 2 year old cheque?

Generally, a bank is not obligated to cash a check that is more than six months old. However, some banks may still choose to honor older checks if they believe it is appropriate. For checks older than two years, it is highly unlikely that a bank will cash them. It's best to contact your bank for their specific policies regarding old checks. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

What is the statute of limitations on a check?

The statute of limitations for cashing a check varies by state, but it is typically around three to six years for written contracts. This means you may have several years to pursue payment if the check is not cashed. However, banks may refuse to honor checks older than six months regardless of the statute of limitations. Always check your state's specific laws for accurate information. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

How long do you have to cash a business cheque?

Business checks generally remain valid for six months from the date they are issued. After this period, banks may refuse to cash them, although they can choose to do so at their discretion. It's advisable to cash or deposit a business check promptly to avoid any issues. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

Do business checks expire if not cashed?

Yes, business checks can expire if not cashed. Typically, they are valid for six months, after which banks may not be required to honor them. It's important to cash or deposit checks promptly to ensure payment is processed without complications. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

How long is a business cheque valid for?

A business check is generally valid for six months from the date it is issued. After this period, banks may refuse to cash or deposit the check, although they may still do so at their discretion. To avoid issues, it's best to cash or deposit the check within this timeframe. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

Do business cheques expire?

Yes, business checks can expire. They are typically valid for six months after the date of issue. If not cashed within this timeframe, banks may not be required to honor them, although they may choose to do so. To prevent complications, it's advisable to cash or deposit checks promptly. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*