The correct answer is D. The drawer may stop payment.
A post-dated cheque is a cheque that is written on a date that is in the future. The drawer of the cheque agrees to pay the amount of the cheque on the date that is written on the cheque. However, there are risks involved in paying a post-dated cheque.
One risk is that the drawer may stop payment on the cheque. This means that the drawer will instruct the bank not to pay the cheque when it is presented
for payment. If the bank does not pay the cheque, the person who presented the cheque for payment may be left without the money that they were expecting.Another risk is that the drawer may become insolvent or die. If the drawer becomes insolvent, they may not be able to pay their debts. This includes the debt that they owe on the post-dated cheque. If the drawer dies, the person who is owed money on the cheque may have to go through the probate process in order to get their money.
Finally, there is a risk that an Attachment Order may be received attaching the balance in the account. An Attachment Order is a court order that requires a bank to freeze the funds in an account. This can happen if the drawer of the cheque is involved in a lawsuit. If an Attachment Order is received, the
bank will not be able to pay the post-dated cheque.For these reasons, it is important to be aware of the risks involved in paying a post-dated cheque. If you are considering paying a post-dated cheque, you should make sure that you understand the risks and that you are comfortable with them.