Is post dating checks illegal in illinois
» MORE: How to write a check “It’s kind of a tricky scenario,” says Matt Foster, founder of the rental property search site i Rent and a landlord in Ventura, California.
He receives checks from some renters on the 28th or 29th of the month that are dated for the first of the next month.
Luckily for them, Foster waits to cash postdated checks, but he isn’t legally obligated. Banks and credit unions generally state rules about postdated checks in their account disclosures.
The bank receiving a stale check can return the check to the paying bank marked unpaid, request a new check be issued or consult with the person who wrote the check.
For example, XYZ Company submitted a series of checks to Raw Material Services, Inc.
Checks dated six months after this payment date do not have to be honored by a bank pursuant to the Uniform Commercial Code in the United States.
This code is a set of laws adopted at the state level that governs financial contracts.