Sometimes the question arises whether post-dated checks are covered by the statute. upon presentation.” The crime may be more serious if the check-writer is a recidivist or the amount of the check is very large. Another line of reasoning taken by the courts supporting this view is that bad check statutes do not apply to postdated checks, because such checks do not conform to the definition of a check in the Negotiable Instruments Law, that is, “a bill of exchange drawn on a bank payable on demand.” Other courts, though, have held that postdated checks are within bad check laws . Nonetheless, perhaps there are circumstances under which a worthless check charge would make sense. Finally, if my check to my mechanic had been dated today, it appears that I could be charged with writing a worthless check even if he and I agreed that he would not cash the check until Monday. If your bank or credit union cashed a check before the date you put on it while your notice was still valid, then it may be liable to you for any damages. This information may include links or references to third-party resources or content.The content on this page provides general consumer information. We do not endorse the third-party or guarantee the accuracy of this third-party information. [because] there is no language in the statutes which can be interpreted to exclude postdated checks, or [because] even though such instruments are not checks, they are drafts, and drafts are covered by the statutes. Of course, it may be difficult to prove that the check-writer knew that he wouldn’t have money to cover the check on the assigned date – and if the state were able to prove that, it likely could charge the check-writer with obtaining property by false pretenses. 812 (1942) (“[T]he fact that [the writer] had an agreement with the [payee] not to deposit [certain checks immediately] would not exculpate him from having issued checks . rule should apply on these facts, as “[t]here is no essential difference between a postdated check and one given with the understanding or agreement that the same shall be held and presented by the owner at a future date”). The sweeping language in , though, I wonder, whether a distinction could be made between a situation where the check-writer genuinely expects to have the money to cover the check on the date he assigns, and a situation where the check-writer knows full well that he will not have the money to cover the check on that date. There may be an argument that in the latter type of case, the check-writer does “know at the time of the making” that he doesn’t have, and won’t have, sufficient funds to cover the check. knowing at the time he did not have sufficient funds.”).
And you have to make sure you provide all this information before the bank receives the check.
Payments Canada Payments Canada has created a video to explain how cheques travel through the Canadian payments system, why those cheques are “image-conscious” and what happens if they hit a bump in the road Canada has one of the most efficient cheque clearing systems in the world and, while the use of cheques has been declining with the growing popularity of electronic and card payments, financial institutions in Canada still process nearly a billion cheques every year.
A cheque is an agreement of payment between two individuals or organizations.
Generally, a bank is permitted to cash your check when it receives it, even if the check is paid before the date on the check and even if it causes the check writer to incur bounced-check fees.
The only way you can spare yourself from having the check cashed early is by notifying the bank in advance. Questions can be answered only through this column.