What Happens to the Money if a Cashier’s Check is Not Cashed

A cashier’s check is a guaranteed payment issued by a bank, so it does not bounce like a personal check. If the recipient doesn’t cash it, the funds remain in a special account at the issuing bank. Typically, the check issuer or the payee can inquire about the status of the check by contacting the bank. If the check remains unclaimed for an extended period, the bank may charge a dormancy fee or return the funds to the issuer after a certain time frame, as specified in the bank’s policy.

Unclaimed Fund Laws

In the United States, unclaimed funds are financial assets that have been left dormant for a certain period of time and have no known owner. Cashier’s checks are one type of financial asset that can become unclaimed property if they are not cashed within a specified time frame.

  • Each state has its own unclaimed property laws, which determine how long a cashier’s check must be dormant before it is considered unclaimed property.
  • In general, the dormancy period for cashier’s checks is between 5 and 10 years.
  • After a cashier’s check has been dormant for the specified period of time, the issuing bank will report it to the state’s unclaimed property division.
  • The state will then attempt to locate the owner of the check and return it to them.
  • If the owner cannot be located, the money from the check will be deposited into the state’s unclaimed property fund.

The following table provides a summary of the dormancy periods and reporting requirements for cashier’s checks in each state:

StateDormancy PeriodReporting Requirement
Alabama5 yearsAnnual
Alaska7 yearsAnnual
Arizona5 yearsAnnual
Arkansas10 yearsAnnual
California7 yearsTriennial
Colorado5 yearsAnnual
Connecticut10 yearsTriennial
Delaware5 yearsAnnual
Florida5 yearsAnnual
Georgia7 yearsAnnual
Hawaii5 yearsAnnual
Idaho5 yearsAnnual
Illinois10 yearsAnnual
Indiana5 yearsAnnual
Iowa5 yearsAnnual
Kansas5 yearsAnnual
Kentucky7 yearsAnnual
Louisiana5 yearsAnnual
Maine5 yearsAnnual
Maryland5 yearsAnnual
Massachusetts5 yearsAnnual
Michigan10 yearsAnnual
Minnesota7 yearsAnnual
Mississippi5 yearsAnnual
Missouri5 yearsAnnual
Montana5 yearsAnnual
Nebraska5 yearsAnnual
Nevada7 yearsTriennial
New Hampshire5 yearsAnnual
New Jersey5 yearsAnnual
New Mexico7 yearsAnnual
New York5 yearsAnnual
North Carolina5 yearsAnnual
North Dakota5 yearsAnnual
Ohio4 yearsAnnual
Oklahoma5 yearsAnnual
Oregon5 yearsAnnual
Pennsylvania5 yearsAnnual
Rhode Island5 yearsAnnual
South Carolina5 yearsAnnual
South Dakota5 yearsAnnual
Tennessee7 yearsAnnual
Texas5 yearsAnnual
Utah5 yearsAnnual
Vermont5 yearsAnnual
Virginia5 yearsAnnual
Washington5 yearsAnnual
West Virginia5 yearsAnnual
Wisconsin5 yearsAnnual
Wyoming5 yearsAnnual

What Happens to the Money if a Cashier’s Check is Not Cashed?

A cashier’s check is a secure form of payment issued by a bank, promising to pay the recipient a specific amount of money. While cashier’s checks are generally considered safe and reliable, the question of what happens to the funds if the check remains uncashed arises.

Dormant Accounts

After a certain period of inactivity, a cashier’s check may become dormant. Dormancy periods vary depending on bank policies, but typically range from six to ten years. During this time, the check remains valid, but the issuing bank will not release the funds to the payee.

To reactivate a dormant cashier’s check, the payee must contact the issuing bank and provide proof of identity and ownership of the check. The bank may charge a fee for reactivation.

Unclaimed Funds

If a cashier’s check remains unclaimed for an extended period of time, the funds may be considered unclaimed property and transferred to the state’s treasury.

Each state has its own laws governing unclaimed property, including cashier’s checks. The time frame for transferring unclaimed funds to the state varies, but generally ranges from five to ten years after the check’s dormancy period expires.

To claim unclaimed funds, the payee must contact the state’s unclaimed property division and provide proof of ownership of the cashier’s check.

Table: Dormant and Unclaimed Funds Timeline

0-6 yearsActiveCan be cashed at any time
6-10 yearsDormantNeeds to be reactivated to be cashed
10+ yearsUnclaimedFunds transferred to state’s treasury

To avoid the risk of losing the funds from an uncashed cashier’s check, it’s important to cash it within the dormancy period set by the issuing bank.

Cashier’s Checks: Unclaimed Funds and Escheatment Procedures

A cashier’s check is a type of guaranteed payment similar to a personal check but backed by the issuing bank. When a cashier’s check is not cashed within a specific period, the funds may become subject to escheatment procedures, which vary by state.

Unclaimed Funds and Escheatment

Unclaimed funds refer to money that has not been accessed or claimed by the rightful owner for an extended period, as defined by state laws. When a cashier’s check remains unclaimed, the issuing bank may report it to the state’s unclaimed property division.

Escheatment Process

Escheatment is the legal process by which unclaimed funds are transferred to the state. The process typically involves the following steps:

  1. The issuing bank reports the unclaimed cashier’s check to the state.
  2. The state investigates to identify the last known owner of the funds.
  3. If the owner cannot be located within a specified time frame, the funds are transferred to the state treasury.

State-Specific Laws

Each state has its own laws governing unclaimed funds and escheatment procedures. These laws vary in terms of:

  • The dormancy period before unclaimed funds are subject to escheatment.
  • The process for claiming unclaimed funds.
  • The disposition of funds that remain unclaimed after escheatment.

Table of Dormancy Periods by State

StateDormancy Period
Alabama5 years
California3 years
Florida5 years
New York5 years
Texas3 years

Bank Policies

The policy for uncashed cashier’s checks varies with different banks. Here are the general steps taken by most banks when a cashier’s check remains uncashed:

  1. The bank will hold the funds for a specific period, typically ranging from 90 days to several years, depending on bank policy and applicable laws.
  2. During this holding period, the payee can still cash the check by presenting it to the bank that issued it.
  3. If the check remains unclaimed after the holding period, the bank will usually escheat the funds to the state where the bank is located.

It’s important to note that the funds in an uncashed cashier’s check are not considered lost or abandoned until the escheatment process is complete.

To prevent escheatment, it’s recommended to cash or deposit the cashier’s check promptly.

Alright folks, that’s about all we have for you on this topic. Hopefully, you’ve found the information helpful, and if you have any further questions, don’t hesitate to drop us a line. In the meantime, feel free to browse the rest of our blog, where we cover a wide range of money-related topics. Thanks for stopping by, and we hope to see you again soon!