Tell us
what you think
Our Sponsors
 |
Our Sponsors
|
Question & Answer
Question: What is the liability of a financial institution on post dated checks? Is it illegal to write a post dated check and give it out?
Answer: It is neither illegal to write a post dated check nor to give it out as long as there is no illegal intent. That is an important phrase.
If the check is given out, and there is no intention of ever honoring the check, or if it is written against non-sufficient funds and no attempt is ever made to make it good, then it could be construed to be illegal.
A check is not negotiable until the date that appears on it. Until that day, you only have a promise to pay. You never want to accept a post dated check over the counter of your financial institution.
Copyright © 1993 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 4, No. 1, 6/93
Rate This Article
Current Rating For the Feature:
| Total Ratings for this Feature: 1 |
|