post dated checks

[jbiz]

Is it legal to mail a post dated check?

Thanks,
Jbiz

 

[I AM ALWAYS LIABLE]

Is it legal to mail a post dated check?

Thanks,
Jbiz

My response:

Sure. The mere act of placing a check in an envelope is just as legal as placing a Valentine Card, a letter, or a bill, in an envelope.

Did you mean something more by this question?

IAAL

 

[jbiz]

postdated check

Thanks for the super fast responce!!

I mailed several checks out on feb 7 because I was going out
of town. The funds to cover those checks would not be deposited
until Feb. 13 So I dated the checks for Feb. 14. So disregarding
my very clear instructions they deposited the checks and my
bank wants to hit me with a $35.00 plus $5.00 penalty for being
overdrawn. Am I right, the check cannot be cashed until the
date on the check?

Thanks again,
Jbiz

 

[I AM ALWAYS LIABLE]

My response:

Nope, you're wrong. Banks do not have to go by dates any longer. All they are required to do is accept the check for processing through the Federal Reserve System.

For all intents and purposes, there really isn't any meaning to a "post dated" check today. A check can be cashed by anyone, regardless of the date. It only counts when the recipient makes you a promise not to cash the check until a date certain. Other than that, it's "Pay to the Order of."

IAAL

 

[justathought]

I can't help you with the legal side, but on the accounting side... You're the one all upset because a credit card company deposited your post-dated check even though it was hi-lited and stickied?

On the back of the envelope, where it goes through the checklist of "did you remembers" you'll see things like don't staple or enclose correspondence? And they go to a PO box instead of an address?

It's because many large companies don't handle the actual checks themselves. In the accounting realm it's known as "separation of incompatible duties". The checks get photocopied and deposited by an independent third-party who doesn't care what the numbers on the checks are... especially if a machine is doing it (hence no staples or paperclips--machines don't like those). The company will end up with films of the check, but not the actuals. By the time they get to the company, your check has already been sent to the bank, regardless of the information on it.

So you didn't leave them with clear instructions by sending it to the processing center because a person never looked at it. That's why they say don't send correspondence to the processing center... it won't get looked at. The processing machine doesn't care what date it is or the sob story of why the minimum can't be made this month.

And no, postdated checks don't mean much without an agreement. How many ATMs do you know that ask for the date on the check you're depositing? I haven't run across one yet. Because in the grand scheme of things, it's valid legal tender. When you write a check to someone, you're promising them there's money to back it up.

Unfortunate lesson, yes. But now you're the wiser and won't do it again. Next time you go away, have someone send your mail out for you or set up a direct debit via computer for the day the funds are available.

 

[jbiz]

Great reply

Thanks very much for what I believe is very good advice. (or at
least a very good opinion) Not what I wanted to hear but,,,,,
Is all this under the UCC??

Thanks,
jbiz

 

[JETX]

Re: Great reply

Is all this under the UCC??
Thanks,
jbiz

Per the UCC:
"§ 3-104. NEGOTIABLE INSTRUMENT.
(f) "Check" means (i) a draft, other than a documentary draft, payable on demand and drawn on a bank or (ii) a cashier's check or teller's check. An instrument may be a check even though it is described on its face by another term, such as "money order.""

And, most important:

"§ 4-401. WHEN BANK MAY CHARGE CUSTOMER'S ACCOUNT.
(a) A bank may charge against the account of a customer an item that is properly payable from that account even though the charge creates an overdraft. An item is properly payable if it is authorized by the customer and is in accordance with any agreement between the customer and bank.
(b) A customer is not liable for the amount of an overdraft if the customer neither signed the item nor benefited from the proceeds of the item.
(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.
(d) A bank that in good faith makes payment to a holder may charge the indicated account of its customer according to:
(1) the original terms of the altered item; or
(2) the terms of the completed item, even though the bank knows the item has been completed unless the bank has notice that the completion was
improper."
Source: http://www.law.cornell.edu/ucc/ucc.table.html

 

[jbiz]

responces

You guys are awesome,,,,and fast,,,thanks very much!!
feel good just having access to you blokes!!

Thanks,
jbiz

 

[I AM ALWAYS LIABLE]

Re: responces

You guys are awesome,,,,and fast,,,thanks very much!!
feel good just having access to you blokes!!

Thanks,
jbiz

My response:

I know . . . doesn't it just give you the goose bumps and warm fuzzies ?

IAAL