Dhani signs a check "pay to the order of Eton" drawn on Dhani's account in Fidelity Guaranty Bank and dates the check "May 1." Eton presents the check to the bank for payment on December 15. This is
A) an oversight.
B) a stale check.
C) an overdraft.
D) a certified check.

Question

Dhani signs a check "pay to the order of Eton" drawn on Dhani's account in Fidelity Guaranty Bank and dates the check "May 1." Eton presents the check to the bank for payment on December 15. This is​
A) ​an oversight.
B) ​a stale check.
C) ​an overdraft.
D) ​a certified check.

Quizplus · Accepted Answer

A check is considered stale if it is presented for payment six months or more after the date on the check. In this scenario, Eton presents the check to the bank for payment seven months after the date it was written. Therefore, it is a stale check.

Dhani Signs a Check "Pay to the Order of Eton