Legal Definitions - memorandum check

A memorandum check is a type of check that a borrower gives to a lender for a short-term loan. The borrower writes the check for the amount of the loan, but the lender agrees not to cash it until the loan is due. This type of check is also known as a postdated check.

For example, if John borrows $500 from his friend Jane, he might write her a memorandum check for $500 with the understanding that she will not cash it until the loan is due in two weeks. This allows John to get the money he needs now and pay it back later.

Memorandum checks are not considered legal tender until the date they are postdated for. This means that if the lender tries to cash the check before the agreed-upon date, the bank may not honor it.