What is Post Dated Check? Definition of Post Dated Check, Post Dated Check Meaning and Concept

The post- dated check is one whose issue date is later than the day it was actually issued. The document may indicate, for example, that it was issued on May 6. However, the beneficiary received it in April. It is the opposite of the backdated check.

One situation in which the issuer (drawer) uses this type of check is when he does not have enough money in his account at the time of writing it. Then, it asks the holder to make the payment from the date that appears on the paper.

However, it is possible to present a post- dated check before its issue date. The bank must access the corresponding payment, as long as the required funds exist in the drawer's account.

Post-dated check features

Among the characteristics of the post-dated check, the following stand out:

  • It is common when making short-term loans or credit purchases. Thus, the drawer offers a future payment.
  • The checks postdated apply to the same as those without issuance date (for the place the beneficiary ). Likewise, payment orders with an issue day prior to the actual moment of delivery (backdated) are admissible.
  • If, when presenting the check to the bank, there were insufficient funds in the drawer's account, the beneficiary could sue for the collection of the document.
  • Post-dated check is not the same as deferred paycheck. The latter contains an issue date and a payment date after it was granted. In other words, the drawer clearly establishes that the document can only be collected after a period of time has elapsed after its issuance.
  • The check postdated is easier to endorse than other checks. This is due to the fact that the legal collection periods are longer. If the paper is issued, for example, on December 2 and is issued and payable in Spain, the beneficiary could use it until December 17. However, if the issue date is set on purpose on December 5, the holder will have a few more days to approach the financial institution.