BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -This means your financial institution cannot cash or deposit the cheque until that date has arrived. Stale-dated Cheque – This is a cheque that is still uncashed more than 6 months after it’s written. At this point, it is a stale cheque, and a financial institution will not cash it.

Detailed explanation-2: -Stale Checks: A check, other than a certified check, that is presented for payment more than six months after its date. • As a general rule, a bank is not obligated to pay a stale check upon presentment, although it may do so.

Detailed explanation-3: -An outstanding check represents a liability for the payor. The payor must be sure to keep enough money in the account to cover the amount of the outstanding check until it is cashed, which could take weeks or sometimes even months. Checks that are outstanding for a long period of time are known as stale checks.

Detailed explanation-4: -Personal, business, and payroll checks are good for 6 months (180 days). Some businesses have “void after 90 days” pre-printed on their checks. Most banks will honor those checks for up to 180 days and the pre-printed language is meant to encourage people to deposit or cash a check sooner than later.

Detailed explanation-5: -What is an Uncleared Check? An uncleared check is a check that has not yet been paid by the bank on which it was drawn. Such a check has already been recorded by the payee and presented to its bank. There is a clearing cycle that must then be completed that lasts several days.