We were always under the assumption that a post dated check could clear when presented. Well, you can tell him that class is in session and you are the professor.
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You should check the young man’s account contract to see what it says about postdated checks and your fee for that service--your account contract with him can amend the UCC (I wonder if he learned that in school? He may owe the bank money for contacting you and using this service.
I am not sure, but I think many banks charge for this service. If the law student has no intention of ever honoring the check, or if it is written against non-sufficient funds and no attempt is ever made to make it good, then it could be construed to be illegal.
Lamphere holds a Bachelor's degree in business management and is an experienced author, content manager and editor.
He called the bank the other day and stated that he mailed a post dated check to someone and if we allowed that item to clear his account before the date on the check, we would be liable for the funds coming out of his account.
As a landlord, collecting a check that has been postdated could be dangerous.
The tenant may know that he or she will not have the money in time, the check could have a stop-payment placed on it, or the check may bounce.
However, if the tenant writes the check with the intent to have funds in the account on the date that the check is postdated for, there is no intent to commit fraud or pass a worthless check and therefore no illegal activity has technically taken place.
Accepting a check that is postdated may provide the tenant with a legal defense that negates criminal intent even if the check doesn't clear.
He stated that he just learned in a class of his that if he gave the bank notice of this check, we were accountable if we allowed the item to clear his account before the date on the check.