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cheque, date, dated and bill

POST-DATED. A cheque which is dated subsequent to the actual date on which it is drawn is called a post-dated cheque.

A bill is not invalid by reason only that it is post-dated. (Section 13, s.s. (2), Bills of Exchange Act, 1882.) A cheque is included under the word " bill " in that section. A post-dated cheque is therefore a legal instrument and can be negotiated as soon as drawn.

A post-dated cheque should not be paid before the date appearing thereon. If a banker pays it before that date he Nvill be liable for any consequences that may ensue, as, for instance, in the event of the dishonour of a cheque, which would not have been dis honoured if the post-dated cheque had not been paid, or in the event of the drawer giving notice to " stop payment " before the date of the cheque arrives. A cheque pre sented for payment before the date has arrived should be returned marked " post dated." If a cheque is presented on a Saturday, and is dated for the next day, Sunday, it should not be paid on the Saturday.

When the date upon a cheque has arrived, a banker is entitled to pay it, and incurs no liability in doing so.

After the date any holder may sue upon the cheque, though before the date he could not do so.

A post-dated cheque is sometimes given because the drawer does not expect to have funds to meet it until that date arrives. A

purchaser often gives such a cheque, so that he may have a few days in which to examine his purchase before the cheque can be paid.

If a person draws and issues a cheque on February 1 and dates it March 1, it is practically the same as if he accepted a bill payable one month after February 1. But if he accepted a bill, the stamp duty would be an ad valorem one, whereas on the post dated cheque the duty is the usual duty upon a cheque, one penny. It is thought by some authorities that a drawer may be liable to a penalty on the question of •insufficient stamp duty, under the Stamp Act, 1891, but it is said that that question could not arise in an action on the cheque after the date of the cheque has arrived, because then the cheque would no longer be post-dated.

When a post-dated cheque is handed to a banker for collection when the date arrives, the customer should sign a paying-in slip dated for the day on which the cheque is to be credited.

Bankers do not discount post-dated cheques, but money-lenders advertise that they cash them for clients at a certain discount. (See BILL OF EXCHANGE.)