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Cashier's Check - Void After 90 Days - Legal in Texas?

#1
In the State of Texas is it legal for a credit union to refuse to cash a cashier's check if it is past the "void after" time frame written on the check? Some Googling indicates cashier's checks cannot go "stale", but I cannot find any Texas specific link concerning this. Anyone got a link? Thanks.
 


Zigner

Senior Member
#2
Yes, it's perfectly legal. The sites I'm finding are commercial sites which we are not allowed to refer to. Somebody else may have more luck finding one for you...
 
#5
Nope. Wasn't trying to get you to break the rules. Was just trying to ask if it was permissible. I didn't see a sticky post at the top of this forum about rules like a lot of sites have.
 
#6
A defined period of validity is not the same as a check going stale. Going stale is where there is no stated expiration date but it has been long enough that it raises concerns about the check. If a check has a defined period of validity, that is simply one of the terms the writer has included in issuing the check. You can place conditions on checks you issue. If the recipient is willing to accept the terms, then they are generally enforceable.
 
#9
A defined period of validity is not the same as a check going stale. Going stale is where there is no stated expiration date but it has been long enough that it raises concerns about the check. If a check has a defined period of validity, that is simply one of the terms the writer has included in issuing the check. You can place conditions on checks you issue. If the recipient is willing to accept the terms, then they are generally enforceable.
Thanks. Do you know if Texas has any laws/regulations about how I can access the money other than waiting the 3 years until the credit union is required to send it to the state as unclaimed funds?
 
#10
Was this check originated by you or buy someone else to you? If you are on good terms with the other person they may have more luck getting the check canceled and cashed or reissued.

It also might not hurt to talk to the management of the CU instead of tellers and teller supervisors.
 
#11
Was this check originated by you or buy someone else to you? If you are on good terms with the other person they may have more luck getting the check canceled and cashed or reissued.

It also might not hurt to talk to the management of the CU instead of tellers and teller supervisors.
Check was originated by another party in a business transaction. Not possible to go back to that person to get them to cancel the check and send me another one.

Yep on talking with the CU management. I am going down that route. Just trying to find if there are any Texas regulations on my side as some "ammunition". For example, in California, I have been told that "void by" restrictions on cashier's checks are not legally enforceable. No idea if that is true or not and it's California so doesn't help me. :)
 

adjusterjack

It's a Dry Heat
#14
For example, in California, I have been told that "void by" restrictions on cashier's checks are not legally enforceable. No idea if that is true or not and it's California so doesn't help me. :)
You're right. You're not in CA so CA can't help you.

The Texas Uniform Commercial Code Chapter 3 addresses negotiable instruments which include checks and cashier checks. The Chapter discusses conditional and unconditional instruments which means that there is no prohibition against a conditional instrument with a statement on its face that it is void after 90 days.

And the icing on the cake is:

Sec. 3.304. OVERDUE INSTRUMENT. (a) An instrument payable on demand becomes overdue at the earliest of the following times:
(1) on the day after the day demand for payment is duly made;
(2) if the instrument is a check, 90 days after its date; or
(3) if the instrument is not a check, when the instrument has been outstanding for a period of time after its date that is unreasonably long under the circumstances of the particular case in light of the nature of the instrument and usage of the trade.
https://law.justia.com/codes/texas/2017/business-and-commerce-code/title-1/chapter-3/

There you have it. Void after 90 days is the law.

Can't imagine why anybody with a lick of sense would delay cashing a check past the 90 day period when it says 90 days right on the check.

If the issuing CU won't cash it for you, I suggest you deposit it in your own checking account and let your bank send it for collection. Any reason you can't do that?