Bad Check


Bad Check
A check drawn on a nonexistent account or on an account with insufficient funds to honor the check when presented.

"Passing" bad checks is illegal, and the crime can range from a misdemeanor to a felony, depending on the amounts involved and whether the activity involved crossing state lines.

Many times, bad checks are written inadvertently by people who simply were unaware that their bank balances were too low. It is always a good idea to have a small overdraft line of credit to cover such situations, or keep a close eye on your balance near bill-paying time.

When there are insufficient funds in an account, the bank will "bounce the check" (refuse to honor it). Banks and vendors frequently charge fees for bounced checks, sometimes exceeding the amount for which the check was written. Online banking can help to avoid writing bad checks by allowing you to view your balance more frequently. Consumers can also create a backstop account that is automatically debited if the primary checking account is too low to pay a specific check.


Investment dictionary. . 2012.

Look at other dictionaries:

  • bad check — noun deceptive check, defective check, forged check, fraudulent check, inutile check, invalid check, nugatory check, returned check, rubber check, suppositious check, unmarketable check, unserviceable check, unsound check, useless check,… …   Law dictionary

  • bad check — noun a check that is dishonored on presentation because of insufficient funds issuing a bad check is a form of larceny • Syn: ↑bad cheque • Hypernyms: ↑check, ↑bank check, ↑cheque …   Useful english dictionary

  • bad check — check which cannot be paid by the bank, check which was returned due to insufficient funds in the account from which it was written …   English contemporary dictionary

  • bad check — A check which is dishonored on presentation for payment because of no, or insufficient, funds or closed bank Writing or passing of bad checks is a misdemeanor in most states. Model Penal Code No. 224.5. See also check kiting worthless (worthless… …   Black's law dictionary

  • bad check — A check which is dishonored on presentation for payment because of no, or insufficient, funds or closed bank Writing or passing of bad checks is a misdemeanor in most states. Model Penal Code No. 224.5. See also check kiting worthless (worthless… …   Black's law dictionary

  • bad check — noun A check/cheque written against a bank account with insufficient funds to pay the bearer the amount of the check. Syn: bounced check, rubber check …   Wiktionary

  • Bad Check Restitution Program — A Bad Check Restitution Program is an intermediate agency that works to retrieve funds from bad check writers in order to repay moneys owed to the recipients of the checks.About half of all U.S. states offer some type of Bad Check Restitution… …   Wikipedia

  • Check kiting — is the illegal act of taking advantage of the float to make use of non existent funds in a checking or other bank account; it is a form of check fraud. It is commonly defined as intentionally writing a check for a value greater than the account… …   Wikipedia

  • check — n 1: something that limits or restrains see also checks and balances 2: a written order signed by its maker directing a bank to pay a specified sum to a named person or to that person s order on demand see also negotiable instrument compa …   Law dictionary

  • bad — adj: not valid: void bad notice; esp: not covered by sufficient funds a bad check Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary


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