New York Laws
Article 2 - General Municipal Finances
21 - Cancellation of Unpaid Checks or Drafts.

§ 21. Cancellation of unpaid checks or drafts.

Checks or drafts of any municipal corporation, district corporation or
school district which shall have been outstanding for more than one year
from the respective dates thereof, shall be cancelled and the amount
thereof returned to the fund which was originally charged. Prior to such
cancellation, the bank or banks on which such checks or drafts were
drawn shall be notified, by the fiscal officer or other officer having
responsibility for issuance of such checks, not to pay the same. A
complete and accurate record of all checks and drafts so cancelled shall
be maintained. The amount of any such check or draft shall be paid
without interest in the same manner as any other claim presented for
payment within six years from the original date of issuance, from any
moneys legally available, to the lawful holder thereof, or in the
absence of such check or draft, to the person or entity lawfully
entitled to payment upon submission of a voucher and a statement
accounting for such absence. For purposes of such payment, the governing
body of the municipal corporation, district corporation or school
district may establish an appropriation containing moneys sufficient to
pay the amounts of any outstanding checks or drafts which may be
presented.

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