Advanced Alloys, Inc. v. Sergeant Steel Corp.

The question presented is whether a bank has a duty of inquiry before paying a check which is stale in that it was presented for payment 14 months after issuance. Prior to the enactment of the Uniform Commercial Code, .such a duty existed. (Cowing v. Altman, 71 N. Y. 435; Goldberg v. Manufacturers Trust Co., 199 Misc. 167.) However, section 4-404 of the Uniform Commercial Code states that: “ A bank is under no obligation to a customer having a checking account to pay a check, other than a certified check, which is presented more than six months after its date, but it may charge its customer’s…