check kiting
A scam in which an individual deposits worthless checks in different banks and uses his or her good credit to withdraw funds before the checks clear, attempting to deposit the money into the account on which the check is drawn before the discrepancy is discovered. See also bad check

The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. . 2008.

check kiting
v. To write a check while knowing that there are insufficient funds in one's account to cover it. Depending on the circumstances, check kiting is often a crime, especially if the drawer or maker has previously deposited a check from another bank into his account and hopes that the funds from that check will reach his account before the outgoing check is paid. Also called kite and kiting.
See also check.

Webster's New World Law Dictionary. . 2000.

Look at other dictionaries:

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  • check kiting — ˈcheck ˌkiting noun [uncountable] LAW BANKING when someone illegally obtains credit from one of their bank accounts by paying in a cheque from another account, taking money out against this cheque and using it for a few days before having to… …   Financial and business terms

  • check–kiting — check–kit·ing / chek ˌkī tiŋ/ n: the practice of drawing on uncollected funds during the time needed to clear a check deposited in a bank esp. if the check is worthless – called also kiting; ◇ Check kiting typically works this way: a check drawn… …   Law dictionary

  • check kiting — Practice of writing a check against a bank account where funds are insufficient to cover it and hoping that before it is deposited the necessary funds will have been deposited. First State Bank & Trust Co. of Edinburg v. George, Tex.Civ.App., 519 …   Black's law dictionary

  • kiting — kit·ing / kī tiŋ/ n: check kiting Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. kiting …   Law dictionary

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  • Kiting — can refer to: * In sports, a common slang term for kite flying or sometimes refers to Kitesurfing. * In investing, a form of check fraud called check kiting. * In MMORPGs, a tactical move using long range attacks, see: Kiting (MMORPG term). *… …   Wikipedia

  • kiting — Used in banking to refer to the practice of depositing and drawing checks at two or more banks and taking advantage of the time it takes for the second bank to collect funds from the first bank. Bloomberg Financial Dictionary Also refers to… …   Financial and business terms

  • Kiting — 1. The act of misrepresenting the value of a financial instrument for the purpose of extending credit obligations or increasing financial leverage. 2. A fraudulent act involving the alteration or issuance of a check or draft with insufficient… …   Investment dictionary

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