Nonpar Item

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Nonpar Item

A negotiable instrument (such as a check) drawn on one bank and cashed at another bank for a discount from the amount written on the instrument. For example, one may present a check for $100 written on Bank A at Bank B and receive $95. The deduction is to compensate the bank for cashing a check other than its own (and thus transferring the risk that the check will bounce). Nonpar items have become uncommon in the United States since the early part of the 20th century.