check kiting

check-kiting. The illegal practice of writing a check against a bank account with insufficient funds to cover the check, in the hope that the funds from a previously deposited check will reach the account before the bank debits the amount of the outstanding check.

— Also termed kiting; check-flashing. [Cases: Banks and Banking 150. C.J.S. Banks and Banking §§ 349–352, 358.]

“Check kiting consists of drawing checks on an account in one bank and depositing them in an account in a second bank when neither account has sufficient funds to cover the amounts drawn. Just before the checks are returned for payment to the first bank, the kiter covers them by depositing checks drawn on the account in the second bank.” United States v. Stone, 954 F.2d 1187, 1188 n.1 (6th Cir. 1992).

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译者Gary，毕业于国内一流的翻译学院，擅长翻译各种与合规与风控相关的法律文件。