CHECKS

It is a criminal offence if an NSF (non-sufficient funds) check is not paid within five days of the funds being demanded. It is also a criminal offence to stop payment on an issued check or to knowingly receive an NSF check. Post-dated checks are also illegal and if issued can be cashed at any time without regard to the date on them.

Checks are time dated and the statute of limitations applies after 4 years from the time of acceptance.

DEBTS

Trade accounts or regular accounts receivable have a time limitation of one year. If an account is approaching one year of age, it must be placed into collection. Once the debtor is legally notified that the debt has been placed into collection, the statute of limitations no longer applies.

Debts arising from commercial contracts with a specified time limit have a statute of limitations of four years after the debt is due.

Information Courtesy of ARCR