POSTULATE CHECKS

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Definitions

1. the system of promoting a potential customer's check against his "postulate" that some time in the near future the check will be good. And then treating this postulate check as real and valid income. It presents a false picture of the actual scene. The postulate check system is admitted nowhere in policy as an allowable procedure. Nowhere. You concentrate on real income; not on postulates. (SO ED 114 INT)

2. a check written against non-existent or inadequate bank balance. A postulate check is so named because it is written on the postulate that the person will subsequently be able to obtain the money to cover. It amounts to nothing more than a promise to pay. It is not money. A postulate check may be in the form of a counter check or it may be a regular check made on the person's own check forms. (CO 1 US, 22 May 71)