Postdating a cheque jennifer granholm and the dating game
(For example, if Mike writes a check on the 14th of January, but postdates it for the 28th, the bank will not cash the check for another two weeks.) Article 3, Section 113 of the Uniform Commercial Code (UCC) outlines the rules for postdated checks. S., the Uniform Commercial Code is a standard set of business laws to regulate financial contracts.The UCC better enables lenders to loan money, secured by a borrower's personal property.A cheque is an agreement of payment between two individuals or organizations.So when you write a cheque, you are agreeing to pay another individual or organization money that you owe them and you are instructing your bank to make that payment.This usually occurs on the borrower's next payday.
If your bank had given you immediate access to the funds, it will then remove the funds from your account.
If you were the cheque-writer, very often your financial institution will charge an NSF fee.
You can avoid these fees by ensuring there is enough money in your account to cover the cheques that you write.
That bank makes sure that the cheque is legitimate and there are enough funds in the cheque-writer’s account to cover the cheque, and then sends the funds to your bank.
This process can take a few days but, for most cheques, the bank makes the funds available to the customer right away.