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The reason for writing a PD check is to provide payment to the recipient immediately, but the payee may only collect the money on the later date written on the check.In terms of the Texas penal code, a PD check constitutes a promise to pay the amount to the payee on a specific date.People usually write PD checks when insufficient funds are available to cover the check on the date on which the payee needs it.Article 3-113 of the Uniform Commercial Code (UCC), which regulates sales and commercial transactions in all U. states, specifies that the date written on the "instrument" is what determines the date of payment, even if it the date on the check is later than the day when it is issued.My neighbor gave three post dated checks to her dentist and the dentist ran all three through the bank at once and the bank let them go through. A bank may now pay a post-dated check before the date on the check unless the customer notifies the bank not to pay it.Many companies will not accept post dated checks, because they do not have the guarantee that the writer's bank account will be open, let's say, six months down the road. It is always best to check with the state laws and codes as to their rulings on post dated checks.
Accountholders may also give signing authority for their Account to individuals who do not have an ownership interest in the Account; such individuals are referred to herein as “Authorized Signers.” The Bank is authorized to act on the signature of any of the Accountholders or Authorized Signers for which specimen signatures are provided on the signature card; the Bank may act on such signature, regardless of whether it is presented as an original signature or as a facsimile thereof.I would like to know if post dated checks are used in US Banking? Thanks Sandeep No US banks do not do this, they merely expect you to pay when the monthly payment is due, or send a statement In some loan companies, it has been done, but I would worry about any bank that asked for that.Say for example in take a loan for 50000$ Tenure :12 months. In giving a post dated check - what guarantee do you have that the checks will be held until the date? On August 1, 1996 the state Statutes regarding post-dated checks were changed.However, many banks do cash checks presented before the due date, and may not be held liable unless certain steps have been followed to prevent them from doing so.Commercial organizations often state on their invoices that they do not accept PD checks and all checks will be deposited immediately.