What is a stale-dated check?
A stale check is one presented to a bank after a specified time, typically six months. While a stale-dated check is not necessarily invalid, banks may deem it an “irregular” bill of exchange and refuse to honor it. At this point, the only way to process the payment is if the drawer — otherwise known as the check writer or issuer — changes the date on a replacement check or issues a new check.
The United States Uniform Commercial Code (UCC) specifies that banks are not obligated to cash a check more than six months old. The UCC states, “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.”
Under this definition, banks include those financial institutions that offer:
- Checking accounts
- Savings accounts
- Loans
- Credit unions
Also notable in this definition is a certified check. Certified checks are personal checks from a bank account owner who has drawn on the account and had the bank guarantee the check.
When a check is certified, the bank backs that the drawer’s signature is genuine and that he or she has enough money in the account to cover the cost of the check.
Certified checks guarantee that there are funds in the account, so those cashing the check don’t have to worry about it bouncing.
Certified checks are similar to cashier’s checks. The only difference is that when issuing a cashier’s check, the bank withdraws the funds from the purchaser and then issues the check on the purchaser’s behalf. Because the paying bank receives funds upfront, the recipient doesn’t have to worry about dealing with a bad check.
So in summary, banks are not obligated to honor outstanding checks older than six months, although they can potentially do so. Banks are required to cash certified checks and cashier’s checks, even if they are greater than six months old.