BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -What is a Postdated Check? A postdated check is one that is written with a future date indicated on it. This is usually done to account for an anticipated delay in deposit. For example, you may decide you would like to postdate a check if you are sending in a bill payment earlier than the due date.

Detailed explanation-2: -It becomes a cheque only when it is payable on demand. A post-dated cheque does not become payable until the date, which is shown on the face of the said document, arrives.

Detailed explanation-3: -A post-dated cheque bears a date later than the date it was issued on. It can only be cashed after the date specified by the payer. The post-dated cheque can be valid after the mentioned date but not before it. Hence, even if it is presented to the bank, the bank will not process it until the mentioned date.

Detailed explanation-4: -Postdated refers to a payment that is meant to be processed on a specified date in the future. You can postdate financial instruments such as checks or you can postdate electronic payments. Postdated payment instruments are covered under the Uniform Commercial Code, which has been adopted by nearly every state.