Not Sufficient Funds Law and Legal Definition
Not sufficient funds is the annotation used in banking industry for dishonor of a check because insufficient funds are available in the account on which the instrument was drawn. It indicates that the drawer’s account does not contain enough money to cover payment. Generally, both the depositor and the drawer of the dishonored check have to pay a penalty to their respective banks. If a drawer's checks are returned frequently for not sufficient funds then his/her bank will unilaterally close that account. In most jurisdictions it is a criminal offense to knowingly issue a check from an account that is having insufficient funds. It is also called as a bad check or dishonored check, a bounced check, cold check, rubber check, or hot check.
Legal Definition list
Related Legal Terms
- 21st Century Nanotechnology Research and Development Act of 2003
- 341 notice
- 342 notice
- Actual Notice
- Additional Funds Needed [AFN]
- Administrative Subdivision of Funds
- Administrative Takedown Funds [Transportation]
- Advance Notice of Proposed Rulemaking (ANPRM)
- Advance Shipping Notice [ASN]
- Advanced Notice of Arrival
