Back dated check

banking

The backdated check is one whose issue date is prior to the time it was actually issued. The document can then be physically issued on April 15, but the day that appears on the paper is, for example, April 10. It is the opposite of a post-dated check.

The backdated check offers less time for the beneficiary to approach the financial institution. This is due to the fact that the legal payment period is shortened.

For example, for checks issued and payable in Spain, their presentation must be made within fifteen days after issuance. After that period, the bank may or may not agree to the disbursement. This will depend on different variables such as the period elapsed since the expiration date.

Backdated check risk

The main risk of a backdated check is that the legal deadlines for its use expire. This, before the holder goes to the financial institution.

However, if that happens, the payee will continue to retain their rights against the issuer (or drawer) of the check. That is, if the document was intended, for example, to cancel a debt, it will not be paid if there was no compensation.

Likewise, the drawer can strategically place as the issue date a day on which it had funds. That way, you avoid legal action against you if you issue a payment order without having enough money in your bank account.

It should be added that backdated checks are as valid those without a date (so that the beneficiary can place it later). Likewise, titles whose official date of issue is later than that of their actual issuance (postdated) are admitted.

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