What happens if I deposit a post-dated check early?

If a bank does pay a postdated check before the check’s date even though it has received proper notice from the customer, the bank is liable to the customer for any loss resulting from the bank prematurely paying the check.

Can a post-dated check be cashed before the date?

Can a bank or credit union cash a post-dated check before the date on the check? Yes. Banks and credit unions generally don’t have to wait until the date you put on a check to cash it. However, state law may require the bank or credit union to wait to cash the check if you give it reasonable notice.

What happens if a post-dated check bounces?

If the cheques are bounced the person can send notice to defaulter and if in even time payment is not made the person can file case in the court. Legal expenses will be bared by person who files the case. Case closure time is never specified it deponds on terms and the cases.

Are post-dated checks illegal?

Postdating a check is done by writing a check for a future date instead of the actual date the check was written. It is legal for an individual to postdate a check, as well as for a bank to cash or deposit it.

How much is the penalty for bounce check?

In the case of B.P. Blg. 22 the penalty shall be imprisonment of not less than 30 days but not more than 1 year, or by a fine of not less than but not more than double the amount of the check, which fine shall not exceed P200,000.00, or both such fine and imprisonment at the discretion of the court.

What risks are faced by a banker while Honouring a post-dated cheque before its due date?

If someone gives you a post-dated cheque, you have the right to deposit that cheque in the bank when the due date arrives. If the cheque issuer instructs the bank to “stop-payment” or otherwise the cheque is dishonored, you can file a complaint under section 138 of the negotiable instruments act.

Is it illegal to issue a Cheque that bounces?

A cheque bounce is an offence under Section 138 of the Negotiable Instruments Act, 1881 (“Act”) punishable with a fine which can extend to twice the amount of the cheque or imprisonment for a term not more than two years or both.