Postdated Check Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Postdated Check, written in plain English, along with examples of how it is used.

What is Postdated Check?

n.A check isuued at present but with a later maturity date so it cannot get encashed at the present date.The check is like a promissory note and no legal action can be taken if the account closes down or there is shoratge of funds.

History and Meaning of Postdated Check

A postdated check refers to a check that is written and issued by the payer with a future date when it is meant to be cashed or deposited. The payer issues the check with the postdate because of an agreement or understanding with the payee, such as a deferred payment for goods or services. The postdated check is a legally binding instrument, but it cannot be cashed or deposited until the date written on it.

Postdating a check is a common practice in many countries, although the rules and regulations for postdated checks may differ. In the United States, postdating a check is legal, and the check is valid until it has expired, usually six months after the date written on it. However, the bank may not be required to honor the postdated check before its date, and the account holder may be liable for any penalties or fees for insufficient funds or overdrafts.

Examples of Postdated Check

  1. A landlord requires a tenant to issue a postdated check for rent due on the 15th of the month, instead of collecting rent on the 1st of the month.
  2. A borrower issues a postdated check to a lender as collateral for a loan with a future maturity date.
  3. A customer orders goods or services from a supplier and issues a postdated check for payment upon delivery.

Legal Terms Similar to Postdated Check

  1. Stale Check: A check that has not been cashed or deposited within a reasonable time, usually six months, from the date of issuance.
  2. Forged Check: A check that has been altered, counterfeited, or signed without authorization.
  3. Certified Check: A check that has been verified and guaranteed by the bank that issued it for the full amount of the check.