One of the myths that somehow refuses to go away is the myth that post-dated checks are "illegal." They are not.There is nothing illegal, inappropriate, unlawful, unethical, unprofessional, or unconscionable about a creditor asking a customer to issue a post dated check, nor is there any reason a customer cannot issue one or a series of post dated checks to clear a past due balance.
According to the UCC Section 4-403(b), the payer is required to notify his bank in the event that he has issued a PD check, and to provide information such as the name of the payee, the value of the check and the date on which it is due for payment.
Without this information, the bank may either reject or "bounce" the check or cash it.
Though it is illegal in some states to request someone to write you a (or many) post dated checks to guarantee payment.
The check is not legal tender until the date on the check.
As a result, the transaction is not considered as issuance of a "bad check" since the creditor released the merchandise or performed the service in reliance of the check writer's promise to pay at some later date rather than in reliance of the check's negotiability.
Therefore, the protections offered to creditors under the various "bad check" laws may not apply.
Although legally a check is payable on demand, it is not payable before the date on the check.
In terms of the UCC ruling, therefore, it is not legal to cash a PD check in Texas until the date written on it.
If the bank receives notice in time and still cashes the check, it may be liable for loss or damages, including costs if other items are dishonored because of insufficient funds.
If you write a PD check in Texas and do not notify the bank in time, it is within its rights to cash it.
In India - a check cannot be cashed until the date mentioned on the check.