CHECKWRITING PRIVILEGE Definition & Meaning - Black's Law Dictionary (2024)

FAQs

What are check writing privileges? ›

Certified right to write checks against the amount held in a mutual fund. It is a service offered to account-holders. A minimum value for a written checks against an account is typically required by the mutual fund company.

A particular and peculiar benefit or advantage enjoyed by a person, company, or class, beyond the common advantages of other citizens. An exceptional or extraordinary power or exemption. A right, power, franchise, or immunity held by a person or class, against or beyond the course of the law.

Definition & Citations:

A draft or order upon a bank or banking-house, purporting to be drawn upon a deposit of funds, for the payment at all events of a certain sum of money to a certain person therein named, or to him or his order, or to bearer, and payable instantly on demand.

A check is a draft upon an account that is used to instruct a bank or other financial institution to transfer funds from the payor's account (the person who has the account and signs the check) to the payee's account.

When you write a check and there's not enough funds in your account when it's presented, this is considered non-sufficient funds (NSF). When a check is returned due to NSF, it's returned to the payee that deposited the check, at their bank. This allows them to redeposit the check at a later time, if available.

Yes, if the proper information were written on it. In fact, a check doesn't necessarily have to be written on paper. There are legends, probably apocryphal, of checks written on the backs of shirts (by tax protesters) and on watermelon rinds (by goodness knows whom -- maybe madcap farmers), even on skin.

For example, some US states recognize a privilege with respect to communications or confidences between physicians and patients, or between priests or ministers and their confessors (although these privileges are not recognized under federal common law or the Federal Rules of Evidence).

1. An established standard, guide, or regulation; a principle or regulation set up by authority, prescribing or directing action or forbearance; as, the rules of a legislative body, of a company, court, public office, of the law, of ethics. 2.

privilege. noun. priv·​i·​lege. 1. : a right, license, or exemption from duty or liability granted as a special benefit, advantage, or favor: as.

Key Takeaways

Check features include the date, the payee line, the amount of the check, the payor's endorsem*nt, and a memo line.

What is the check 21 act law? ›

The Check 21 Act authorizes a new negotiable instrument called a “substitute check,” which is a paper reproduction of an original check, and provides that a properly prepared substitute check is the legal equivalent of an original check.

Writing a bad check is a crime if the check writer knew that there were insufficient funds to cover the check and intended to defraud you. It is also a crime to forge a check or write a fake check.

You can just detach a check from your supply and write "VOID" on it yourself. The word "VOID" doesn't have to cover the entire check, but it should be big enough and dark enough, written in blue or black pen, so that the check cannot be used. Don't write over the banking number information at the bottom of the check.

If the check includes the bank's number and address, then make sure it is correct. Look for check security features, such as microprinting on the signature line, a security screen on the back of the check, and the words “original document” on the back of the check.

A bad check is a check the bank will not honor. There are three kinds of bad checks. Non-Sufficient Funds (NSF) checks: A check is NSF if there is not enough money in the account to pay it or the account is closed. Stop Payment checks: The person who wrote the check told the bank to stop payment.

You can use checks to make payments, give as a gift, or transfer money between two entities. They are a secure way to transfer money, since the payee is the only one who can instruct the bank to transfer the funds to their account. If a check is lost or stolen, no one else is able to cash the check.

A traditional checking account, also referred to as a standard or basic checking account, offers the ability to write checks. It also provides access to a debit card that you can use to make purchases and withdraw cash at ATMs. This type of checking account may charge a monthly maintenance fee.