On August 1, 1990, Lisa wrote a check for $100 payable to the order of Marcia, her sister. Marcia misplaced the check and found it in May 1991, and attempted to cash it. Under these circumstances, the _____.

Question

Quizplus · Accepted Answer

A bank does not owe a duty to its customer to pay any checks out of the account that are more than six months old. Such checks are called stale checks. However, the bank acting in good faith may pay a check that is more than six months old and charge it to the drawer-depositor's account. In this scenario, the bank may, in good faith, pay the check and charge it to Lisa's account.

On August 1, 1990, Lisa Wrote a Check for $100