Is postdating a check against the law
As a convenience, some financial institutions also provide check images with your statement or on their website that may not meet all the legal requirements for substitute checks.Incidentally, it is legal for your bank to destroy the actual checks you write, which they may do right away or after a period of time.Note that Check 21 does directly address how quickly a bank must make funds you deposit by check available to you, although federal law already places a maximum time limit on clearance of deposited checks.Accepting a postdated check from a tenant may seem like a surefire way to get the money that you are owed, but this does not always lead to payment and sometimes may even lead to further complications.As a result, the transaction is not considered as issuance of a "bad check" since the creditor released the merchandise or performed the service in reliance of the check writer's promise to pay at some later date rather than in reliance of the check's negotiability.Therefore, the protections offered to creditors under the various "bad check" laws may not apply.
This substitute check contains all the information from the front and back of the original check and is considered a legal equivalent of the original.
Unless you are 100 percent sure that the tenant can be trusted and that there will be funds to cover the check when it is ready to be cashed, it may not be a good idea to accept a postdated check.
The Uniform Commercial Code states that a bank may honor a postdated check provided the check is otherwise safe to cash and the account owner has not provided the bank with "reasonable notice of the postdating.
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We've always paid the total balance due each month.
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The checks usually aren't cashed until the first of the month and they clear my account on the second or third. Key and my landlord both said, "Too bad," and said postdating checks is illegal, anyway. There are no Federal Reserve regulations, which cover banking, that govern the payment of post-dated checks, said spokeswoman Anne Di Teodoro.