Postdating a check law

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A Canadian bank, for example, is not supposed to process a post-dated cheque and if it does so by mistake, the cheque writer may ask his or her bank to correct the error.

In the United States and the UK, post-dated cheques are negotiable instruments and can be drawn upon at any time, while in India post-dated cheques are not payable until the date written on the cheque.

There is no exemption from payment of stamp duty on a bill of exchange if it is a cheque.

Stamp duty is payable on every negotiable instrument which is payable in future with reference to the time after which it is payable.

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(Commercial Code § 4401) It is a violation of the Fair Debt Collection Practices Law for a debt collection agency or a creditor who regularly collects its debts to deposit a postdated check before its due date.

It is not difficult to understand that a post dated cheque is not payable on demand.

The courts considered under the Negotiable Instruments Act, 1881. In 1998, the Supreme Court ruled that a post-dated cheque is a bill of exchange and does not become payable on demand until the date written on the cheque: If a post dated cheque is a bill of exchange which is not payable on demand how the stamp duty will be calculated on such a bill of exchange.

(f(4)) "The presentation of a postdated check is not subject to the civil or penal sanctions" that would normally apply to someone who wrote a check with insufficient funds because the postdated check promises "to discharge a present obligation at a future date" and that money would be available to meet the debt when the check is cashed.

Should the question arise the check is "postdated", there should be no problem if the debtor wrote the words "postdated" above the date of any of the checks submitted, however, without this kind of documentary evidence, it may be difficult for the debtor to prove the checks were "postdated".

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