[GNC] Recording transactions (date)

[Kalpesh Patel]

" WOULD honor the check " -- that is the price to be paid because of automation where date, whether hand written out or otherwise, cannot be deciphered correctly 100% of the time by the check processing equipment and its OCR, but the check number is in MICR line which is decipherable by all check processing equipment, hence able to "stop" it.

Even though check might say valid XX days or valid until some date, I bet it would get processed just like a postdated check would when deposited. Of course payer can take an exception with the bank but nonetheless the payee's bank check processing equipment would not hold it off.

-----Original Message-----
From: R Losey <rlosey at gmail.com> 
Sent: Wednesday, April 10, 2024 12:31 AM
To: stepbystepfarm at comcast.net
Cc: gnucash-user at gnucash.org
Subject: Re: [GNC] Recording transactions (date)

On Tue, Apr 9, 2024 at 4:37 PM Michael or Penny Novack < stepbystepfarm at comcast.net> wrote:

> On 4/9/2024 12:50 PM, R Losey wrote:
> > Thanks; I wasn't sure if those (cash vs accrual) were the correct terms.
> >
> > Legally, are you saying that if I write a check for $50 and send it 
> > to my uncle, it's "paid" whether or not he ever cashes it?
> >
> > As as aside, I am actually in this situation; I sent e check many 
> > years
> ago
> > to someone who has never cashed it; when I asked about it, the 
> > person
> told
> > me that they had no intention of cashing the check, but also 
> > couldn't
> find
> > it to return it, so I've been carrying that check now for years. 
> > Sadly,
> the
> > cost of issuing a "stop check" is not worth it, and the bank says it 
> > will honor a check, no matter how old, so I don't see any way out of this.
>
> What are the laws of your jurisdiction and/or the banking customs? Or 
> the rules of your bank as to how long they will consider a check "live"
> (will honor it if presented).
>

I'm in Texas; I specifically asked the bank and they said that they WOULD honor the check, regardless of how old it was. This surprised me greatly, as I worked in a bank in Illinois, and we would hold any check that was "old" (I think perhaps six months). They suggested I issue a "stop check", but as I noted, it's not worth it.




> Most places I have ever lived, most banks I have dealt with, have 
> definite rules that apply unless the check itself specifies a shorter 
> period. Haven't you ever gotten a check marked "void after 60 days" 
> (or
> whatever)
>

Certainly, but I didn't expect this situation and I didn't write any such thing on the check.



> Your bank told you WILL HONOR or CAN HONOR? It is common for banks to 
> say CAB HONOR to relieve themselves of liability in a case where they 
> did honor a check after the date their policy (or jurisdiction laws) 
> specify. In other words, "we normally will not honor checks more than 
> six months old but can honor a check no matter how old".
>

I thought they said "WILL HONOR"




> But back to where this started, you paid your uncle on the date you 
> gave him that check.
>

Right, but this wasn't any kind of legal debt; he had visited and done us some favors, and we tried to thank him by sending him a check. He said he wouldn't take it, but he couldn't find it to give it back. He may have thrown it out; he just couldn't remember what he did with it. Thus, I am still considering an outstanding check, even though it is probably safe to consider it gone.



_________________________________
Richard Losey
rlosey at gmail.com
Micah 6:8