Can a bank cash a postdated check before the date specified on the check?

Published 05/07/2008 08:50 AM   |    Updated 05/07/2008 08:50 AM
Can a bank cash a postdated check before the date specified on the check?

Indiana Code 26-1-4, which is the Uniform Commercial Code, addresses bank deposits and collections. IC 26-1-4-401(c) states, in part, that a bank may charge the account of a customer a check that is properly payable even though the payment is made before the date of the check, unless the customer has given notice to the bank of the postdating describing the check. You can read the entire statute by clicking on the link below:

http://www.in.gov/legislative/ic/code/title26/ar1/ch4.html

The Department of Financial Institutions does not have jurisdiction over IC 26-1-4. You should contact legal counsel for further advice concerning IC 26-1-4.
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