Common use of Stale or Postdated Checks Clause in Contracts

Stale or Postdated Checks. Depository reserves the right to pay or dishonor a check more than 6 months old without prior notice to you. If you can write checks on your account, you agree not to postdate any check drawn on the account. If you do and the check is presented for payment before the date of the check, Depository may pay it or return it unpaid. Depository is not liable to you for paying any stale or postdated check, and you agree to reimburse Depository for any loss Depository might suffer, as long as Depository acted in good faith or exercised ordinary care. Any damages that you incur, and which Depository may be liable for, are limited to actual damages not to exceed the amount of the check.