N.Y. General Municipal Law § 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.