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Does post dating check mean

does post dating check mean-79

Unless you have an express contract to allow them to cash a check on receipt, they can't.

does post dating check mean-74

From the perspective of the payer, the best way to ensure that funds are not released early is to notify the bank not to release funds against this check any earlier than the date stated on the check. The Question: I recently sent in my rent check early, as I usually do, with the date on the check reading Sept. The check was cashed by my landlord at his bank (Dollar Bank), and my own bank (Key) on Aug. There would have been enough money in there by Sept. One section, Article 4, 4/401(c), says: "A bank may charge against the account of a customer a check that is otherwise properly payable from the account, even though payment was made before the date of the check, unless the customer has given notice [such as stop payment] to the bank of the postdating." As far as whether it's illegal to postdate a check, it's not. The rent check of $425 cleared, but wiped out my balance, which was supposed to cover other checks and ATM withdrawals. The Answer: This is an important lesson for people, and a potentially expensive one for you: It doesn't matter what date is on a check -- it can still be cashed. She noted that such matters are governed by the Uniform Commercial Code, which concerns general business practices.A check dated for one or more days after it is written.For example, if one dates a check for January 31st, and it is currently January 25th, it is a postdated check.From the perspective of the check issuer, there should be no journal entry to record the reduction in cash until the date listed on the check.

From the perspective of the recipient, there should be no entry to record the increase in cash until the date listed on the check.

The bank is also unlikely to notice the date on the check.

In this situation, the check is considered a negotiable instrument, irrespective of the date, and it is likely that the recipient will receive cash from the bank prior to the date on the check.

Your bank may (and most likely will) accept a prematurely cashed check without pause. If cashing a postdated check early causes you an overdraft, then you may chase after the payee (who the check was made out to) for the damages.

     WARNING Asking the payee to cover your damages may cause other problems so play carefully.

Thus, the date on the check effectively postpones the underlying accounting transaction.