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Post dated checks are legal and in most cases the bank is allowed to cash them. The exception is when you notify your bank that you have post dated a check. This is in accordance with the UCC (Uniform Commercial Code), which most states follow. The following link may help.
Illinois Legal Aid | Can the Bank Pay a Post-dated Check before the Date on the Check?
Even though my posting was referring to the law in Canada both by the Government and by the Canadian Payments Association which banks here in Canada must abide by, it turns out the post-dated rule that banks use here in Canada today is a rule that the banks themselves have implemented even though it goes against the law. It's only when client threaten to sue the bank or get the FCAC or CPA involved that they back down as they knew they are legally responsible for the making sure the check isn't cashed on the date before it was posted.Quote:
Originally Posted by walt17
CPA - The Canadian Payments Association
Rule/Law:
A1 General Rules Pertaining to Items Acceptable for Exchange, for the Purposes of Clearing and Settlement, which states that any bank that is a member of CPA cannot cash your cheque before the date indicated on it.
Government of Canada / The Department of Justice of Canada
Rule/Law:
Bills of Exchange B-4 which has been in legislation since 1882, the latest amended version still consists of the same law and wording for post-dated or antedated cheques.
FCAC - Financial Consumer Agency of Canada a division of the Government of Canada, they also uphold the Rules/Law which The Canadian Payments Association has set forth.
In the USA I would check the "Bills of Exchange" (the US version) to see if ti conflicts with the state law, if it does you then have a case. :)
My ex-wife has cashed my post-dated child support cheques twice in the past six months. While she has only cashed them a few days early, the last time she did this it cost me several dollars in NSF fees because I had not been paid and didn't have the funds in the account. (Pay day was the same date as the cheque was due to be cashed.)
The bank told me that a post-dated cheque is legal tender and it is only out of courtesy that the recipient holds the cheque to the date written on the cheque.
This is frightening as both my ex-wife and my landlord hold tens of thousands of dollars of my post-dated cheques! Legally, they could cash them all in at any time!!
I just spoke to the president of my bank and she told me that even though my landlord said he would wait to cash my check, it is illegal and punishable by fine, or jail time, and if you do not have the money in your account at the time you will be charged by the bank.
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