I. INTRODUCTION
What effect should be given to a check legend which states: “Void after X days” or “Void if drawn over $5,000”? The check should not be treated as conditional to affect negotiability, but should be treated as an instruction to the payor bank when notto pay.
II. DISCUSSION
A check may state a time limit within which it must be presented for payment and such a time limit should be enforceable. Neither the 1962 nor 1990 versions of the UCC deal with terms of limitation that might appear on a check, such as “void if drawn for over $5,000” or “void after 60 days.” It appears that such language should not make the check conditional. The language should be treated as an instruction to the payor bank not to pay a check for more than the stated amount or a check presented after the stated time limit.
Under pre-UCC law, a term in a certified check stating “void if not cashed within 60 days” was given effect, but the effect of the language on negotiability was not discussed. See, Citizens & S. Bank v. Daniel, 107 Ga. App. 398, 130 SE 2nd 231 (1963).
Some banks may print “void after X days” on official checks or cashier checks for the purpose of prompting the payee to cash the check within a relatively short period of time. Note that this language has no binding effect on such bank checks because they are treated as official obligations of the bank under the UCC. The bank is required to honor the check unless a claim for a lost, stolen or destroyed check has been filed and the claim has become enforceable (See, Deposit Accounts Tab, UCC Article 3 and 4: Negotiable Instrument/Bank Deposit and Collection Issues: Lost, Stolen or Destroyed Cashier’s Checks, Teller’s Checks, or Certified Checks).