Legal Question in Banking Law in California

I have a bank account in the state of California, I have not lived there for several years, but still maintain my checking account in that state. In March of 2004, I wrote a check to a business in Arizona, while I was working there, at a RV park and marina. the check was for Insurance for my ex wife. On the date of July 13, 2010, the check was submitted to my bank and they paid it. I was very upset, that they accepted a over 6 year old check into their system and taking the money from my account, without first contacting me, I realize a written check, is a form of contract. But, Iwas under the impression, the check had been paid years ago. Does the bank have an obligation to honor the check, Or is their a statue of limitations for a business to apply the check for collection. Either in California or Arizona.


Asked on 7/17/10, 6:03 am

2 Answers from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

It used to be that if you deposited a stale-dated check you would get a call from Mrs. Grundy at the bank, but nowadays there are no humans who read the writing on the face of the check. Under Uniform Commercial Code Section 4-402 a bank may refuse to pay a check more than six months old, but it also may pay it. Whether the insurance company was wrong to deposit the check, or whether you can sue them for the money back, is a question of Arizona law, and whether you can sue the bank may also be a question of Arizona law if your bank has branches there.

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Answered on 7/17/10, 10:53 am

That's what you get for not balancing your check-book and putting stop payments on old checks if they haven't been cashed, before counting that money as back in the account.

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Answered on 7/19/10, 11:48 pm


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