How long is a check good for? Stale dates and void after notices

What does the law say about how long a check is valid?

The rule comes from UCC 4-404, part of the Uniform Commercial Code that states have adopted into their own laws. It says a bank is under no obligation to a checking account customer to pay a check, other than a certified check, presented more than six months after its date. It also says the bank may charge the account for a payment made after that in good faith.

So six months is not an expiration date. It is the point after which the bank may refuse the check without breaking its duty to the account holder. Some banks still pay older checks automatically, especially when they are deposited by image and never reviewed by a person.

How long are different types of checks good for?

What does void after 90 days mean on a check?

Many businesses print a legend such as void after 90 days or void after 180 days on their checks. It tells the payee to deposit quickly, and it gives the writer a clear cutoff for reissuing lost checks and closing out old items in the books.

How strictly a bank enforces it varies. Automated processing may not read the legend, so a stale check can still clear. If you need an old check to stay unpaid, do not rely on the legend alone. Place a stop payment on that check number or, if you use positive pay, remove it from your issued file or mark it void so it becomes an exception.

How long are U.S. Treasury checks good for?

Federal law limits Treasury checks to one year. The Treasury Financial Manual says they must be negotiated no later than one year from the date of issuance, and the checks carry the legend VOID AFTER ONE YEAR above the disbursing officer's signature. Uncashed Treasury checks are then cancelled automatically, and the payee generally must contact the agency that issued the payment to request a replacement.

This applies to federal tax refund checks and other payments drawn on the U.S. Treasury. Checks from state agencies follow their own rules, which are usually printed on the check.

What should you do if you receive an old check?

If a check you received is approaching or past six months, contact the writer before depositing. A bank may reject it, return it weeks later, or charge a returned item fee. Ask the writer to confirm the funds are there, or better, to issue a new check and void the old one.

• Check the date and any void after notice on the face
• Call the writer and ask whether they want you to deposit it or wait for a replacement
• If you deposit it, watch the account until the funds are final
• If it is returned, ask the writer for a replacement
• Destroy the old check once a replacement clears

What should a business do about checks that were never cashed?

Outstanding checks sit on your books as money owed. Review them monthly during reconciliation. Once a check passes your void after date or six months, contact the payee, confirm the address, and offer to reissue. If the payee wants a replacement, place a stop payment on the old check number first so both cannot clear.

If you cannot reach the payee, the money does not simply return to you. Uncashed payroll and vendor checks are generally covered by state unclaimed property laws. After a dormancy period set by each state, the business must make a good faith effort to reach the owner, then report and remit the funds to the state. Dormancy periods differ by state and property type, so check your state unclaimed property office for the rules that apply.

How do you handle a stale check in your register?

Keep the check listed as outstanding until it clears, is stopped, or is reported as unclaimed property.

Here is a worked example. You issue check 2041 for $318.00 to a former contractor on March 2. By September 2 it has not cleared. You email and call, confirm the contractor still wants payment, place a stop payment on 2041, and issue check 2107 for the same amount. In your register, 2041 is reversed with a note reading replaced by 2107, and 2107 becomes the new outstanding item. Do not simply delete it, which would overstate your balance if it clears later. When you reissue, record the new check and reverse the old one with a note linking the two numbers. Our guide to balancing a checkbook shows how outstanding checks fit into a monthly reconciliation.

Can a check be dated in the future to extend it?

Postdating does not stop a bank from paying early. Under UCC 4-401, a bank may pay a postdated check before its date unless you give the bank notice describing the check with reasonable certainty. Write the real date, and if you want payment delayed, hold the check until then.

If you write business checks, printing a clear void after notice on your stock is a simple way to set expectations. You can compare check formats, including laser checks for accounting software and three to a page checks with stubs, and see our step by step guide on how to write a check for the fields that make each check valid.