Granite Equipment Leasing Corp. v. Hempstead Bank

Under the Uniform Commercial Code, does a bank have a duty of inquiry before paying a stale check? Does it matter that the stale check had been previously stopped under a stop payment order which expired for lack of renewal? So this case goes.

Granite Equipment Leasing Corp. kept a checking account with Hempstead Bank. On October 10, 1968 Granite drew a check payable to Overseas Equipment Co., Inc. Five days later, after Overseas advised that the check had not been received, Granite wrote the bank on October 15, 1968 to stop payment on the check. On that same day Granite authorized the hank to…