Postdating of checks is still a very real issue. When the drawer of a postdated check has given the “proper” advance notice to their drawee bank, the check is not properly payable until the date on the check.
- Your member has a legal right to postdate a check drawn on their credit union account. The check is still negotiable, but if the member wants you to refuse payment until the date of the check, they need to give you the proper advance notice, describing the check with reasonable certainty. If they do so, then the check should not be paid.
- Your front line staff should still watch for postdated checks being presented. If a member wants to deposit a postdated check to their credit union account, you may choose to refuse to accept the check. Technically the check is still negotiable, but you have no way of knowing whether the drawer of the check has notified (or will yet notify) their bank that the check is postdated.
Published March 21, 2013. See ii Release No. 0049 – Checks / Share Drafts for more specifics on postdated checks and share draft accounts.