Rules of Checks and Bills of Exchange
Q1933: What is the ruling in the matter of selling post-dated checks or bills of exchange for less than their nominal value for cash?
A: There is no objection for the creditor to sell to the debtor the nominal amount of the post-dated check or bill of exchange for less for cash. As for selling it to a third-party for less, it is not right.
Q1934: Can the amount of the check be considered cash, so much so that the debtor can say that they settled the debt by giving it to the creditor?
A: The check cannot be treated in the same way cash can. The settlement of the debt, by way of writing a check to the creditor or the seller is dependent on whether or not receiving it is considered as receiving its amount. This, however, is governed by different circumstances and people.
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