unpaid check definition

unpaid check

Check that was dishonored on presentation at the bank (or other financial institution, called payee) on which it was drawn, for (1) a technical reason, such as a mismatch between amount in figures and words, or was disfigured, or torn, (2) being 'stale' due to its presentation for payment after a certain period (usually six months after the date on the check), (3) lack of sufficient funds in the drawer's account to cover the amount, or (4) 'stop payment' order issued by the drawer to the payee. Also called bounced check or returned check.

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