Postdated

DEFINITION of 'Postdated'

Any check or draft that has a future date written upon it by the user. The amount of the check will not be drawn from the account until the date written on the check. For example, a check written on the 14th of the month but dated for the 28th will not be cashed for another two weeks.

BREAKING DOWN 'Postdated'

The rules for postdated checks are outlined in Article 3, Section 113 of the Uniform Commercial Code. These checks are frequently used by customers who take out payday loans. Most banks will honor a postdated check even though it is paid before the date on the check.

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