Postdating a

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Since the bank money order is a cashier's check equivalent, it is NOT possible to place a stop payment on it.However, if it is lost, stolen, or destroyed, the Section 3-312 claim procedure may be used.The new rule on postdated checks is found in Section 4-401.It provides that a bank may charge a postdated check against the account of its customer unless the customer has given notice to the bank of the postdating describing the check with reasonable certainty!Generally that is interpreted as meaning the bank can't have reason to know the customer does not want the check paid.

For the first time ever, he writes a check on the account.

If the customer has made a claim alleging that the check was stolen, you will want to determine if the endorsement has been forged by a thief. If an enforceable claim is made under Section 3-312 and the check is later presented for payment, you do NOT return it stop payment.

You return it marked, "Not properly payable due to enforceable claim made under UCC 3-312."Give the money back only on the condition that the customer post an indemnity bond or sign an indemnification agreement to protect you in the event the check shows up and gets paid before the claim becomes enforceable.

The effective length of the notice is just like a stop payment order.

Also like a stop payment order, the notice of postdating must be received at such time and in such manner as to afford the bank a reasonable opportunity to act on it before the bank takes any action with respect to the check.

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