cheque clearing

[Bazile]

If i've got a cheque dated 04/05/07 ( valid for 12 months) -Do I need to present it to the bank by the 04/05/08 for it to clear OR has it got to be cleared before 04/05/08

thanks

[kempie]

Can you clarify exactly who has stated the period of validity.

In law a cheque remains valid for 6 years but it is common practice (anti-fraud) for financial institutions to reject cheques beyond 6 months from date of issue.

[Bazile]

It says on the cheque - ' if this cheque is not presented for payment within twelve months , it must be returned ..... '

Is the time it takes to clear ( 5 days , or whatever it is ) included in the stated 12 months period ?

[kempie]

The key word is presented. This is when you physically hand the cheque over to the Bank etc. to start the clearing process.

The issuer seems to stating its own anti-fraud policy by not honouring cheques presented after 12 months have elapsed however, as I mentioned above, it is unlikely that a bank would accept the cheque after only 6 months had elapsed.

[dzug]

This is common practice with company dividend cheques - the bank will honour the period printed on it.

If it notices the date at all.