[KotOD]

Question: Stale Dated Check. Our bank was presented with a $700.00 check that we paid one month ago, that was over 6 months old at the time of payment. Can this item be returned or, as I suspect, is it considered a "late return" at this time?

The second half of the question is, what liability does the bank of first deposit have for accepting this item and are we, as the paying bank, responsible, in any way, for having paid a stale dated item?


Answer by Ken Golliher:
Obviously, a physical inspection of the item would have made it apparent to your bank that it was post dated. You had until midnight of the banking day following the banking day of presentment to return the item. After then, it is finally paid and would definitely be a "late return" in the time frame you mention.

The paying bank's only risk in accepting a stale dated item for deposit is if the paying bank returns the item in a timely fashion.

Finally, under the current version of the UCC (check your state's version) the paying bank may pay or return a stale dated check; i.e. it is your option and paying the item imposes no automatic liability on your bank. For the iscussion to go further, your customer would have to have been damaged in some way by the payment and be able to make some allegation that your institution had some demonstrable responsibility to reject the item due to the stale date.

SOURCE: Bankersonline.com