Legal Question in Banking Law in New York
The life of a personalcheck?
Does a personal check have a limitation on how long it can be held before deposited or cashed, and if so, how long before a personal check is not considered a legaly binding doument.
Thank you
S. Mckenzie
1 Answer from Attorneys
Re: The life of a personalcheck?
Personal checks are binding for as long as they exist. Embed one in lucite and it may be good forever. A bank may, but is not required to, honor items more than 6 months old. Which is to say that some banks make it a policy to reject items more than 6 months old, and some just process everything. Obviously, if the account against which it is drawn no longer exists, then the bank won't honor it.
Distinguish between the check and the underlying obligation. You owe money on the underlying obligation until the obligee actually gets paid. You owe money on the check to whomever takes the check for value in good faith.
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