We had a business customer notify us of a stale dated check that was posted to their account. It is past the return time frame. Who is liable for this check hitting the customers account? There is no way that we would have seen the date on the check prior to it posting to the account.

UCC 4-404 protects the bank.

§ 4-404. BANK NOT OBLIGED TO PAY CHECK MORE THAN SIX MONTHS OLD.
A bank is under no obligation to a customer having a checking account to pay a check, other than a certified check, which is presented more than six months after its date, but it may charge its customer's account for a payment made thereafter in good faith.


You paid the item in good faith. If the business customer did not want the item paid, it was their responsibility to place a stop payment on the check. The customer is liable, not the bank.

Look at your UCC. The UCC generally states that the bank has no liability if they pay a stale dated check in good faith if the customer did not notifiy the bank ahead of time. I forget the citation off the top of my head.

Thanks for your help. I found what i needed.