What is postdating check
What is postdating check - dating advice for dating
Should the question arise the check is "postdated", there should be no problem if the debtor wrote the words "postdated" above the date of any of the checks submitted, however, without this kind of documentary evidence, it may be difficult for the debtor to prove the checks were "postdated".
In situations in which the tenant can be trusted, the landlord has known the tenant to be an honest, on-time payer or the landlord otherwise believes that the money will be in the tenant's account on the date the check posts, accepting a postdated check can be beneficial.
(Commercial Code § 4401) It is a violation of the Fair Debt Collection Practices Law for a debt collection agency or a creditor who regularly collects its debts to deposit a postdated check before its due date.
(f(4)) "The presentation of a postdated check is not subject to the civil or penal sanctions" that would normally apply to someone who wrote a check with insufficient funds because the postdated check promises "to discharge a present obligation at a future date" and that money would be available to meet the debt when the check is cashed.
A postdated check does show the tenant's will to pay, and if the funds are in the account on the date the check is cashed the landlord will receive the money.
If the check bounces the landlord may have certain civil remedies to help recuperate the promised funds.
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leginfo.gov' A bank is not obligated to pay a check that is presented more than six months after its date of issue, but may do so if it wishes.
Realistically, the recipient of a post dated check may never notice that the check has been post dated, and so will record and deposit it at once.
The bank is also unlikely to notice the date on the check.
For example, ABC International receives a 0 check payment from a customer for an unpaid invoice on April 30. ABC should not record the cash receipt until May 15, nor should it reduce the related accounts receivable balance until May 15.
Thus, the post dated check has no impact on the financial statements of ABC International until the date listed on the check.
If an auditor sees an ongoing pattern of check post dating, there would be an inclination to delve more deeply into company finances, and perhaps state a going concern issue in the audit opinion that accompanies the financial statements.