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09-Aug-2017 09:31

There are two alternatives that could have prevented this situation from happening—one that could’ve taken away the construction company’s authority to deposit the check, and another that could have taken away the bank’s discretion to process it.To take away the discretion from the construction company, my friend could have gotten the construction company to actually agree in writing to not deposit the check until after Friday.It is important to remember that post-dating a check does not mean anything by itself, unless it is carried out either with a agreement with the party receiving the check or advance notice to the bank, ideally both and in writing.

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Because they might not always have enough money in their accounts on the day they write those checks, some folks will postdate their checks so that they aren’t deposited or cashed until after that date.

The risk with this part of the strategy is that its legal effect varies state by state.