negotiable Instruments Law Notes - Checks.docx - CHECKS SEC...

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CHECKS SEC 185 – A check is a bill of exchange drawn on a bank payable on demand A written order addressed to a bank or persons carrying on the business of banking by a party having money in their hands requesting them to pay on presentment to a person named therein or to his order or to bearer a named sum of money. Checks not mere Contracts 1. A representation of funds on deposit 2. A representation of credit stated in monetary value 3. Substitute for cash 4. As payment for obligation Bills Payable in the future POST-DATED CHECKS Kinds: 1. Those bearing the date of their issuance but directing payment on a specified date in the future ; and 2. Postdated checks or those bearing a date subsequent to their delivery and specifying no time for payment Nature Payable on demand on or at any time after its date. Its effect is the same if it had not been issued until that date In effect only a representation by the drawer that he expects to have funds in the bank with which to pay the check on the date named therein.

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