@legalbillingsoftware,
Because I was told that some money lenders have the borrower write a post-dated check dated the day the loan matures for the full amount of the principal and interest and hand it to the lender at the same time the lender disburses the loan.
On the maturity date of the loan the lender deposits the check. If the check bounces -- I am told -- the lender is in a stronger position against the borrower than if the borrower defaulted without the bounced check. The reason -- I am told -- has to do with criminal law (e.g., the writing of a bounced check) vs. civil law (e.g., the failure to pay a debt).