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Can you summarize 55-4-404 NMSA?
RELATIONSHIP BETWEEN PAYOR BANK AND ITS CUSTOMER > Bank not obliged to pay check more than six months old.
Short Summary
According to the New Mexico Statutes Annotated 1978, a bank is not obligated to pay a check presented more than six months after its date, except for certified checks. However, the bank may charge the customer’s account for a payment made in good faith after the six-month period. This provision is based on banking and commercial practice, which considers checks outstanding for longer than six months as stale. The bank has the option to pay such checks but is not required to do so. The section explicitly excludes certified checks as they are the primary obligation of the certifying bank. The customer’s account is typically charged when the check is certified. The amendment made in 1992 changed the term ‘obligated’ to ‘obliged’ in the section catchline. No specific penalties are mentioned in the document.
Whom does it apply to?
Customers with checking accounts
What does it govern?
Bank Deposits and Collections
What are exemptions?
Certified checks
What are the Penalties?
No penalties mentioned
Jurisdiction
New Mexico