check
check definition - legal
n
A draft signed by a person
(the drawer or maker) that directs a bank (the drawee) to pay, on demand and
without conditions, a specific sum of money to another person (the payee).
Usually the funds are withdrawn from an account or a deposit that the drawer or
maker has with the bank. Also called cheque.
bad check
A check that is not honored by a drawee bank because it is forged, the
account it is drawn on has insufficient funds or does not exist, or the check
is in some other way defective. See also check kiting.
canceled check
A check with a notation (for example, the word “paid”) on it made by the
drawee bank that indicates that the check has been paid.
cashiers check
A check drawn by a bank upon its own account rather than that of an
individual depositor and made payable to another person, to the same bank, or
to a different branch of the same bank.
certified check
A check with a certification or notation written upon it (for example,
the word “certified”), indicating that the drawee bank has set aside sufficient
funds from the drawerÂ’s or makerÂ’s deposit to guarantee payment of the check on
demand.
NSF check
abbr
abbr. Not
sufficient funds check. A check that a drawee bank may not pay because the
drawer has insufficient funds on deposit to cover it when it is presented for
payment. See also check
kiting.
raised check
A check whose
face amount has been increased. Unless done with the agreement of the drawer or
maker, the charge constitutes a material alteration and discharges the drawer
or maker, as well as the drawee bank, from paying any amount on the check.
Webster's New World Law Dictionary Copyright © 2006 by Wiley Publishing, Inc., Hoboken, New Jersey.
Used by arrangement with John Wiley & Sons, Inc.
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