diff --git a/src/ripple_app/ledger/LedgerMaster.cpp b/src/ripple_app/ledger/LedgerMaster.cpp
index 4f4999db4..d1f1ad36f 100644
--- a/src/ripple_app/ledger/LedgerMaster.cpp
+++ b/src/ripple_app/ledger/LedgerMaster.cpp
@@ -104,11 +104,16 @@ public:
     {
     }
 
-    std::uint32_t getCurrentLedgerIndex ()
+    LedgerIndex getCurrentLedgerIndex ()
     {
         return mCurrentLedger.get ()->getLedgerSeq ();
     }
 
+    LedgerIndex getValidLedgerIndex ()
+    {
+        return mValidLedgerSeq;
+    }
+
     int getPublishedLedgerAge ()
     {
         std::uint32_t pubClose = mPubLedgerClose.load();
diff --git a/src/ripple_app/ledger/LedgerMaster.h b/src/ripple_app/ledger/LedgerMaster.h
index 099d01893..362f638a5 100644
--- a/src/ripple_app/ledger/LedgerMaster.h
+++ b/src/ripple_app/ledger/LedgerMaster.h
@@ -47,7 +47,8 @@ public:
 
     virtual ~LedgerMaster () = 0;
 
-    virtual std::uint32_t getCurrentLedgerIndex () = 0;
+    virtual LedgerIndex getCurrentLedgerIndex () = 0;
+    virtual LedgerIndex getValidLedgerIndex () = 0;
 
     virtual LockType& peekMutex () = 0;
 
diff --git a/src/ripple_overlay/impl/PeerImp.h b/src/ripple_overlay/impl/PeerImp.h
index eda30ed42..edfac9444 100644
--- a/src/ripple_overlay/impl/PeerImp.h
+++ b/src/ripple_overlay/impl/PeerImp.h
@@ -2606,12 +2606,19 @@ private:
         try
         {
     #endif
-            Transaction::pointer tx;
 
-            if (isSetBit (flags, SF_SIGGOOD))
-                tx = boost::make_shared<Transaction> (stx, false);
-            else
-                tx = boost::make_shared<Transaction> (stx, true);
+            if (stx->isFieldPresent(sfLastLedgerSequence) &&
+                (stx->getFieldU32 (sfLastLedgerSequence) <
+                getApp().getLedgerMaster().getValidLedgerIndex()))
+	    { // Transaction has expired
+                getApp().getHashRouter().setFlag(stx->getTransactionID(), SF_BAD);
+                Peer::charge (peer, Resource::feeUnwantedData);
+                return;
+            }
+
+            bool needCheck = ! isSetBit (flags, SF_SIGGOOD);
+            Transaction::pointer tx =
+                boost::make_shared<Transaction> (stx, needCheck);
 
             if (tx->getStatus () == INVALID)
             {