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Cashing Post Dated Checks
by Randy Carey, BOL Guru
Guru Bio
Question: Can a teller cash a post dated check?
Answer: Can they - yes. Should they - that is up to bank policy. Your state's UCC should address this. The "uniform" version of the UCC states:
4-401(c) 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 to the bank of the postdating describing the check with reasonable certainty. The notice is effective for the period stated in Section 4-403(b) for stop-payment orders, and must be received at such time and in such manner as to afford the bank a reasonable opportunity to act on it before the bank takes any action with respect to the check described in Section 4-303. If a bank charges against the account of a customer a check before the date stated in the notice of postdating, the bank is liable for damages for the loss resulting from its act. The loss may include damages for dishonor of subsequent items under Section 4-402.
First published on BankersOnline.com 3/03/08
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