Insufficient funds


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Insufficient Funds

A situation in which one does not have enough deposited in a bank account to cover all checks and/or electronic withdrawals. For example, if Bob writes Joe a check for $200, but there is only $175 in Bob's account, Bob has insufficient funds in his bank account and the bank likely will refuse to transfer the funds to Joe's account. However, some banks make requested transfers with insufficient funds but assess an overdraft fee on the account holder. This is especially true with electronic transactions. See also: Bounce.

Insufficient funds.

If you don't have enough money available in your checking account to cover the checks you've written or electronic debits you've authorized, you have insufficient funds (ISF) or nonsufficient funds (NSF).

A check written against insufficient funds is informally called a returned check, a bounced check, or a bad check. If you write one, your account is considered overdrawn.

Unless you have overdraft protection, which is a line of credit linked to your checking account, your bank will charge you an NSF fee, usually $20 to $35 per check.

The check or an electronic copy is returned unpaid to the person who deposited it. The payee's bank may also charge a fee for depositing a check written against insufficient funds.

References in periodicals archive ?
Antonovich, said the county Public Works Department has proposed the cuts because of insufficient funds.
The subordination amounts are cross collateralized, in that if, on any distribution date, there are insufficient funds available to distribute to the applicable class F or T senior certificates and cash flow from the other pool exceeds the amount required for distribution to its related senior certificates, the excess will be applied to make up the deficient amount.
AmSouth also recognizes that circumstances such as those caused by the recent tornadoes can result in unintended situations where customers may find their accounts in an insufficient funds status.
The person writing the check with insufficient funds ultimately had to repay the money, but the business was paid for its losses through a special fund.
Warrants may be renewed through the issuance of refunding warrants which will be issued if the controller determines that insufficient funds will be available for warrant repayment.
The check bounced because of insufficient funds, according to the allegation.
Moody's had been awaiting finalization of the financing agreement with Canadian Imperial Bank of Commerce under which the bank will provide an amount sufficient to pay the principal and interest on the notes in the event that the city has insufficient funds.
CheckMate automates the exception process and reduces the time that branch managers, lenders and support staff spend making decisions on accounts with insufficient funds, thereby enhancing operational efficiency and consistency.
In this case, checks were not written, there were no insufficient funds and there is not even a hint of misconduct.
While the average insufficient funds fee fell a few cents, from $27.
Recently, the General Accounting Office recovered 4,325 checks returned for insufficient funds, some as large as $1,000 or more.