Is postdating a check illegal in michigan

There are several advantages to taking postdated checks in settlement of an account balance including these: 1.The fact that you are holding a check that will be presented to the bank for payment on a specific date places a burden on the debtor to have funds on deposit when the check is presented. In the event that the check is dishonored and the customer is sued, the existence of the check makes it harder for the customer to argue that the debt was never owed. Even if a post dated check is not honored when it is first presented, there is always the possibility that the check will clear at its second presentment, or that the creditor can tender the check to the debtor's bank on a collection basis.Since this kind of check is not payable on demand, most states refuse to cover postdated checks under bad check laws.Generally, a bank may cash your check when they receive it, even if your check is paid before the date you wrote on the check.One of the myths that somehow refuses to go away is the myth that post-dated checks are "illegal." They are not.

If you choose to accept a postdated check, you run the risk that the person who wrote the check could close their account before you deposit the check, or that their account will not have sufficient funds when you deposit the check.

Technically speaking, because I mail my check in, isn't this post dating it? My response: First of all, postdating a check is not "illegal." However, if you read the Uniform Commercial Code, a bank will take a check regardless of the date.

So, if you've postdated a check, and the payee cashes the check, that's the date the funds will be taken from your account - - or if there are insufficient funds, then you'll be in hot soup.' A bank is not obligated to pay a check that is presented more than six months after its date of issue, but may do so if it wishes.

(Commercial Code § 4404) There is no law that prohibits a check writer from postdating a check (giving it a date in the future).

Leave a Reply