Legal Question in Employment Law in Minnesota
Co. Goes out of Business
If there are outstanding checks paid to contractors & the owner kept the bank Acct open for 6 months after the Co. dissolved, what's the recourse the contractors have to get their money & is there a time limit for checks to be valid even if it does not specify on the check?
Asked on 6/12/07, 12:34 pm
1 Answer from Attorneys
David Anderson
Anderson Business Law LLC
Re: Co. Goes out of Business
Under the UCC and bank accountholder agreements, checks over 6 mos old are not honored. However, the underlying contract obligation will continue for 6 years under the standard Statute of Limitations. Lien rights must be asserted much sooner (120 days after last work).
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Answered on 6/12/07, 2:23 pm
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