While a stale-dated check is not inherently invalid, banks may refuse to honor it as an “irregular” bill of exchange. At this stage, the drawer — also known as the check writer or issuer — must modify the date on a replacement check or issue a new check-in order for the payment to be processed. The time it takes for a cashier’s check to go stale can likewise vary — from 60 days to never — based on a variety of factors. The issuing bank may specify an expiration date on the check itself in specific situations.

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What is a cashier’s check? Definition, uses, how to buy one, cost and alternatives

The majority of unclaimed property at the University is uncashed cheques issued by several departments. All checks that are two years old or older are required by state law to be reported to the Department of Revenue. Checks issued to California addresses must be reported directly to the State of California rather than to the State of Washington. The State of Washington forwards checks reported with addresses in other states to those states.

Before trying to cash a stale-dated check, it might be a good idea to contact the bank that holds the account the check is drawn against to see what its policy is. If you don’t have any luck contacting the check issuer, consider working with your bank. Some banks may deposit checks if they have reason to believe that the issuer is legitimate, and the company has enough funds in its account to cover the check. State law requires that a letter of notification be sent to a payee regarding a staledated check. The State law only requires letters to be sent for checks issued for $75.00 or more. This letter must be sent between May and August with a response due date on or before September 30th to enable us to meet the October 31st reporting deadline to the State.

What Can I Do if My Bank Honored a Stale Check without My Permission?

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 stale dated checks the date on a replacement check or issues a new check. If you’ve been given a personal or business check, it’s important to understand the check validity period. Most personal checks have a maximum time-frame that they can be presented to a bank before they become stale, which is usually 180 days (6 months) from the date on the check.

If you need assistance navigating this topic, reach out to your BKD Trusted Advisor™, fill out the Contact Us form below, or check out our Outsourced Accounting Services page. We also offer a suite of services related to state and local tax challenges. A typical penalty assessed to the business owner would be a percentage of the property’s value and interest based on the delinquency of filing with the state. Unclaimed property provisions implement two rules for determining the fiduciary state.