Is this a valid and/or legal reason for returning a depostied item?

Yes, but you will end up with someone unhappy.

Since you noticed it, you can no longer claim ignorance (... is bliss).

If the maker does not want the item paid until that date or later and you process it early, the maker will be unhappy. If the maker is your customer, that makes it your problem.

If the future date was an error, then the maker wants it paid and everybody will be happy if that happens.

You probably need to polish your crystal ball to decide what the maker wants.


Al

Can you direct me to a source that has valid return reasons? I can't seem to find anything.

"Date" is the valid return reason. However ...

If your customer has not notified you that he or she does not want the check paid before its date, the date does not prevent you from paying it, and your customer has no recourse to you. It may still mean the customer will be unhappy, but you can point to the UCC (section 4-401(c)) as your authority to pay it "early."

If you aren't willing to take the risk of guessing wrong on this, try to contact your customer and ask. But don't delay your decision. After your midnight deadline, your options are gone and you have to pay the check.

This was actually a deposited item not an on-us item. Thank you for the source.

OK. Well now you know the other bank's perspective. And if it was returned to you for date, your customer should probably wait to redeposit it until the day it's dated.