To that end, it would be absolutely lovely if there were a statute of United States law that rendered the mere writing of a post-dated check an illegal act, thus allowing me to play this trump card in each of these situations.If someone could supply me with such a statute, I would be most greatly obliged. If, on the other hand, post-dated checks are not illegal but merely irrelevant, please inform me of that as well.At least once a day, I get a call from somebody who has written a post-dated check, had the payee cash/deposit it before the written date, and is incensed that the bank would honor the item.I patiently explain to each of these people that the information in the Date field of the check is for the reference of the payor only, that a post-dated check amounts to nothing more than a verbal agreement between the payor and payee, and that the bank will honor any check that has the account number, routing number, written and numerical amount, name of payee, and signature of authorized accountholder. If the check in question overdrew the account, or was rejected for nonsufficient funds, I further explain that it is against federal law to write a check for an amount greater than the available funds in the account at the time the check is written.The Commonwealth Bank uses two options to process foreign currency cheques.
Banks may apply a hold on funds deposited by cheque to manage the risk from losses in case there aren’t sufficient funds in the cheque-writer’s account to cover the cheque.
So when you write a cheque, you are agreeing to pay another individual or organization money that you owe them and you are instructing your bank to make that payment.
Here is some helpful information about the use of cheques and how they are processed by financial institutions.
This is to avoid any incidence of returned cheque due to insufficient funds and the resulting penalty charges.
It causes inconvenience to all parties - drawer, drawee and payee.