In regards to uncashed checks, once you send a due diligence letter, either get it returned or receive no response, and you've exhausted all means of trying to locate the vendor, are you allowed to void the uncashed checks?


Yes you can and should void an uncashed check to prevent potential unauthorized cashing by someone other than the payee. Use of the funds in the interim, given the scenario you describe where due diligence has failed to locate the owner, is a business decision to be made in consideration of the company’s responsibility to the owner and the state, and the associated risk of using that money. If the owner reappears, they have claim to the money. Barring that, and being aware of the dormancy period of the state, the company must decide how best to manage the money and meet its obligations.

Note, however, that while many states once had a dormancy period of seven years, this is no longer the case. Most states have shortened their dormancy period to either 3 or 5 years. See TAPN’s State Escheatment Requirements

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