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Can you summarize DCCO 28:4-404?
Collection of Items: Payor Banks. > Bank not obliged to pay check more than 6 months old.
Short Summary
According to the Code of the District of Columbia, a bank is not obligated to pay a check presented more than 6 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 6-month period. This provision aligns with banking and commercial practice, as checks outstanding for longer than 6 months are considered stale. The bank has the option to pay such checks, especially if it knows that the drawer wants payment. Certified checks are excluded from this provision since they are the primary obligation of the certifying bank, and the customer’s account is charged when the check is certified.
Whom does it apply to?
Customers with checking accounts
What does it govern?
Bank Deposits and Collections, Collection of Items: Payor Banks
What are exemptions?
Certified checks
What are the Penalties?
No penalties mentioned
Jurisdiction
Washington, D.C.