Law Dictionary

check–kiting

noun check–kit·ing \ˈchek-ˌkī-tiŋ\

Legal Definition of check–kiting

  1. :  the practice of drawing on uncollected funds during the time needed to clear a check deposited in a bank especially if the check is worthless —called also kiting

Additional Notes on check–kiting

Check-kiting typically works this way: a check drawn on insufficient funds in one bank is deposited in a second bank, and the funds represented by the check are immediately withdrawn from the second bank. The money is ultimately deposited in the first bank to cover the check before it clears.


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