Limited Payability Cancellation

A limited payability cancellation is the automatic cancellation by the U.S. Department of the Treasury (Treasury) in the 14th month of a check that has been outstanding for one year. The U.S. Treasury returns the funds to the agency that authorized the payment. If a check is presented for payment after it has been limited payability canceled, the U.S. Treasury considers it stale dated and will not honor that payment if presented by a bank. The originating agency would need to issue, or request the Bureau of the Fiscal Service to issue, a replacement check to pay the outstanding obligation.