Post-dated check
In banking, postdated refers to checks which have been written by the drawer for a date in the future. In the United States, postdated items are described in Article 3, Section 113 of the Uniform Commercial Code.[1] Postdated checks are often used in conjunction with payday loans.
Many banks will honor postdated checks, even if they are deposited before the postdate because they will hold on to the check until the check is able to be cashed in. In the United States, national banks are permitted to pay checks even though payment occurs prior to the date of the check. According to the Comptroller of the Currency: "A check is a negotiable instrument—the payee, the person to whom the check is written, may negotiate it through the banking system at any time".[2] Nonetheless, if the bank has been given proper notice of the post-dating, the Uniform Commercial Code requires that the notice be honored, or the bank be held liable for damages.[3]
Legal consequences of cashing in a post-dated cheque before its due date vary from country to country. In the United Kingdom post-dating a cheque carries no legal weight and therefore such a cheque can be cashed before the due date. However a bank can refuse to accept them if the post-date is spotted; if it isn't, the payer has no right to take any form of legal action against the bank for letting the check be processed.[4]. In Brazil, the drawer may seek damages in Justice if their cheque is cashed in before its due date, according to the jurisprudential orientation of the Superior Court of Justice, as per Summary No. 370 of such court[5].
[edit] See also
[edit] References
- ^ 3 UCC 113 from the Cornell Law Center's online version of the Uniform Commercial Code
- ^ "Answers About Cashing Checks". Comptroller of the Currency, Administrator of National Banks. http://www.helpwithmybank.gov/faqs/banking_check_cashing.html#drop02. Retrieved 2008-11-25.
- ^ http://www.law.cornell.edu/ucc/4/4-401.html
- ^ http://www.chequeandcredit.co.uk/faqs/-/page/can_i_post-date_a_cheque/
- ^ http://www.stj.gov.br/portal_stj/publicacao/engine.wsp?tmp.area=398&tmp.texto=90959
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