Expired Check for Shares

[NMForrest]

What is the name of your state? New Mexico

I left an employer in June of 2002. At that time I had earned the opportunity to buy some vested shares. I wrote the company a check dated 7/20/02 for the entire amount of the shares. I then received a certificate for the shares but my check was never cashed. My bank's policy is after 6 months the check is invalid. So after 6 months (1/20/03) I put a stop payment on the check. The company has recently tried to cash the check which was denied. They now want a new check.

Are there any "you snooze you lose" laws? Did they have their window of opportunity to cash the check but missed out or am I still liable for the amount?

 

[HomeGuru]

What is the name of your state? New Mexico

I left an employer in June of 2002. At that time I had earned the opportunity to buy some vested shares. I wrote the company a check dated 7/20/02 for the entire amount of the shares. I then received a certificate for the shares but my check was never cashed. My bank's policy is after 6 months the check is invalid. So after 6 months (1/20/03) I put a stop payment on the check. The company has recently tried to cash the check which was denied. They now want a new check.

Are there any "you snooze you lose" laws? Did they have their window of opportunity to cash the check but missed out or am I still liable for the amount?

**A: why don't you want to pay for the shares?

 

[NMForrest]

There's a couple things. First, I really don't think the shares are as valuable now. The company has had some bad things happen and I have serious questions about their viability. The other half is that since the check had "expired" after 6 months the money feels like it's mine (even though that may not be the case). If given a choice between the money and the shares I'd probably pick the money at this point. But of course I'd like have my cake and eat it too.

 

[HomeGuru]

Ok, I was just wondering because legally, you owe the money.

 

[NMForrest]

So then why do banks consider a check expired if not cashed after 6 months? Paychecks have similar verbage "not valid after 90 days of date".

 

[HomeGuru]

So then why do banks consider a check expired if not cashed after 6 months? Paychecks have similar verbage "not valid after 90 days of date".

**A: the validity of the check and the legal authorization to negotiate the check by the issuing bank has absolutley nothing to do with your liability with respect to the payment to your former company for the shares you purchased.

 

[NMForrest]

Ok, that makes sense. Thanks for your help.

 

[HomeGuru]

No problem. So when will you be sending another check?