Legal Factoid...
G. Bradley Hargrave, Esq.
Acceptance of post-dated checks is a common method of obtaining payment on an outstanding debt when a debtor lacks sufficient funds at present to honor his or her obligation or as a means of consummating a sale that might otherwise not be made. As a general rule, post-dated checks are treated like any other checks.
The UCC (Uniform Commercial Code) states that an instrument payable on demand is not payable before its date. Therefore, a post-dated check remains payable on demand, but not before the date noted on the check. Generally, the fact that a check is post-dated, in and of itself, does not render the check a conditional obligation nor does it have any impact whatsoever on the check's negotiability.
Merchant's should be aware, however, that some states have characterized post-dated checks as promissory notes and not checks. Such a determination may make it difficult to seek a remedy under their state's bad check statute should the check be dishonored and thus preclude collection of penalties normally available when collecting upon a bad check. Of course, post dating precludes a "guarantee" as well.
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