Some U.S. Government Checks Stale Dated After October 1, 1990

The same wonderful Competitive Equality Banking Act that brought us Expedited Funds Availability and Regulation CC in Title 6 has more for us to pay attention to in Title 10.

As of October 1, 1989, Treasury rules require that U.S. government checks will become void 1 year after the issue date.

The issue date appears in two places on the check: the upper left-hand corner to the right of the seal; and in the MICR line in positions 18-15 (October, 1989 appears as "1089"; June, 1990 appears as "0690")

All U.S. government checks dated before or on October 1, 1989 must be negotiated no later than September 30, 1990.

Reassure your customers if they present a check to you stale-dated (over a year old after October 1, 1990) that they are still entitled to their money, but they must contact the federal agency that authorized the check and obtain a reissued check.

(It might be GREAT customer service to have those federal agency phone numbers or addresses available to give to your customers.)

TELLERS need to watch for the dates - upper left hand corner to the right of the seal. If it is a year old, the check is void....do not accept it!

AUTOMATED SORTING can change their software to edit for issue date on MICR line in positions 15-18. The Federal Reserve Bank will be running such an edit, and will return all void items to the depository institution along with normal return items and debit the institution's account.

Treasury will also be running an edit. If stale dated checks slip through the Fed edit, they will be caught by Treasury, returned to the Federal Reserve Bank and then to you.

CLAIMS area can still protest a Treasury check reclamation action.

Treasury will have 1 year and 180 days (1 1/2 yrs.) to begin reclamation procedures due to a forged or unauthorized endorsement. Please note this very important change. Formerly, the time was 6 (six) years and 180 days!

Editors note: This has no affect on the Uniform Commercial Code three year endorsement guarantee on all checks other than U.S. Government checks.

Copyright © 1990 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 1, No. 6, 7/90