Returned Check Law and Legal Definition
According to 12 CFR 210.2 [Title 12 -- Banks and Banking; Chapter II -- Federal Reserve System; Subchapter A -- Board of Governors of the Federal Reserve System; Part 210 -- Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers Through Fedwire (Regulation J); Subpart A -- Collection of Checks and Other Items by Federal Reserve Banks], returned check means “a cash item or a check returned by a paying bank, including a notice of nonpayment in lieu of a returned check, whether or not a Reserve Bank handled the check for collection.”
