![]() ![]() Hence, they were returned back to ABC Co. However, to his dismay, the bank refused to deposit them and declared that those checks as stale. When the accountant found out that these checks had not been deposited in the bank, he sent them out to the bank to be subsequently filled. Related article Why Do Accountants Stereotypically Wear Green Eyeshades? ![]() did not present these checks at the bank until 30 th June 2018. issued checks against inventory purchases from ABC Co. To further explain this concept, the following example can be used:Ī company, Gen X Co. The concept of stale checks does not only apply to personal banking accounts but might also apply to business accounts. ![]() In this regard, banks are a holistic term that is used to define commercial banks, as well as other financial institutions that include checking accounts, savings accounts, loans, as well as credit unions. Stale Checks are often a cause of suspicion when it comes to the bank, and therefore, many countries have the rule that banks are not always obliged to honor such checks, and they can refuse to accept them on grounds of irregularity and suspicion. In simpler terminology, it can be seen that stale check is a check that is presented to the bank after 6 months of the date when the check was initially issued. While the bank might not always refuse to accept the stale check, yet it is often a cause of concern for the bank because it tends to be inconsistent because of the delay in the time period from when the check was issued, and when it was presented to the bank to be honored. The dating timeline in this regard is mostly of a duration of 6 months or more. A Stale Check is defined as a check that is presented to the bank after a considerable amount of time from the date that has been mentioned on the check. ![]()
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