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Q: When does a cashier's check expire? ( Answered,   1 Comment )
Question  
Subject: When does a cashier's check expire?
Category: Business and Money > Finance
Asked by: frankcorrao-ga
List Price: $5.00
Posted: 16 Dec 2005 19:33 PST
Expires: 15 Jan 2006 19:33 PST
Question ID: 606725
For how long after a cashier's (bank) check is dated is it still honoroed?

Clarification of Question by frankcorrao-ga on 16 Dec 2005 19:34 PST
if it matters, this was issued in NY by HSBC.

Request for Question Clarification by cynthia-ga on 16 Dec 2005 21:27 PST
Hi frankcorrao,

This page led me to the correct UCC code:

Other Check Problems: Lost, Stolen, or Destroyed Cashier Checks,
Teller and Certified Checks
http://www.ckfraud.org/problems.html
..."
STALE DATED CHECKS:
The payor bank holds all the cards here. Section 4-404 of the UCC
places the ball firmly in the bank's court by stating that a bank is
under no obligation to a customer having a checking account to pay a
check which is presented more than six months after its date, but it
may charge the customer's account for a payment made thereafter in
good faith.

This provision is intended to protect the payor bank as, once again,
the date is not in the MICR line and often is not noticed prior to
payment of the check.

The bank may thus:

? pay the check and be protected, or 

? refuse to pay the check and be protected.
 
The one thorn in this otherwise pretty provision is the requirement
that the payment be in good faith. Generally that is interpreted as
meaning the bank can't have reason to know the customer does not want
the check paid. There have been numerous cases dealing with the
question of whether an expired stop payment order puts the bank on
such notice. Generally, the answer in most cases has been that it does
not..."


U.C.C. -  4-404. BANK NOT OBLIGED TO PAY CHECK MORE THAN SIX MONTHS OLD.
http://www.law.cornell.edu/ucc/4/4-404.html
..."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..."


Does this answetr your question?

~~Cynthia

Clarification of Question by frankcorrao-ga on 19 Dec 2005 12:21 PST
yes, this is fine.
Answer  
Subject: Re: When does a cashier's check expire?
Answered By: cynthia-ga on 19 Dec 2005 12:28 PST
 
Hi frankcorrao,

Thanks for accepting my research as your answer!

This page led me to the correct UCC code:

Other Check Problems: Lost, Stolen, or Destroyed Cashier Checks,
Teller and Certified Checks
http://www.ckfraud.org/problems.html
http://www.ckfraud.org/problems.html#stale
..."
STALE DATED CHECKS:
The payor bank holds all the cards here. Section 4-404 of the UCC
places the ball firmly in the bank's court by stating that a bank is
under no obligation to a customer having a checking account to pay a
check which is presented more than six months after its date, but it
may charge the customer's account for a payment made thereafter in
good faith.

This provision is intended to protect the payor bank as, once again,
the date is not in the MICR line and often is not noticed prior to
payment of the check.

The bank may thus:

? pay the check and be protected, or 

? refuse to pay the check and be protected.
 
The one thorn in this otherwise pretty provision is the requirement
that the payment be in good faith. Generally that is interpreted as
meaning the bank can't have reason to know the customer does not want
the check paid. There have been numerous cases dealing with the
question of whether an expired stop payment order puts the bank on
such notice. Generally, the answer in most cases has been that it does
not..."

U.C.C. -  4-404. BANK NOT OBLIGED TO PAY CHECK MORE THAN SIX MONTHS OLD.
http://www.law.cornell.edu/ucc/4/4-404.html
..."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..."


Thanks for using our service!


~~Cynthia


Search terms used at Google:
"cashiers check" old OR "out of date"
Comments  
Subject: Re: When does a cashier's check expire?
From: myoarin-ga on 19 Dec 2005 15:47 PST
 
Greetings Frank and Cynthia,
I hate to go against a Researcher's posting  - especially one by Cynthia - 
but the question is about a cashier's check, which is issued by a bank
at the request of a customer, whereas a certified check is a
customer's check that the bank has "certified", documenting on the
check that it will be paid  - if presented within six months.
The first site below explains the difference.  The second one makes
clear that the six month rule only applies to a customer's check,
certified or not.

http://www.credit-to-cash-advisor.com/news_253.html
http://www.bankersonline.com/operations/gurus_op061603d.html

The check fraud site in the answer does not make this distinction when
it refers to "one of the above types" as "cashier's checks.  I take
that to be a bit of sloppy shorthand, establishing a misleading new
definition (which popped up with Cynthia's search  - and sure looks
definitive).

This site from a bank also states that cashier's checks do not become
stale.  You have to scroll down to "money orders":
http://www.abtbank.com/services.html

And this site from California confirms the statement in the
"bankersonline" site that funds for unpaid cashier's checks eventually
go to the State to be held:
http://www.sco.ca.gov/col/ucp/faq/faq.shtml

I hope this adds some clarification.
Regards, Myoarin

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