Is stale checks collectible?

Question

in finance

Answer 1

Yes and no.  From what I remember of Commercial paper and banking law, a bank is only required to honor a draft held by a holder within six months of issue, but may authorize any draft that conforms to the rules for negotiable instruments.  So if your check is older than six months from issue, the bank may accept it, but they may opt not to.  You will likely be more successful in negotiating a stale draft at the bank on which the check was drawn.

A check that is denied does not abrogate the underlying obligation of payment, so you would still be able to pursue the issuer for the amount.