Legal Definitions - dry check

A dry check is another term for a bad check or an insufficient funds check. It refers to a check that is written by an individual or entity when there are not enough funds available in the checking account to cover the amount specified on the check. When the recipient attempts to deposit or cash the check, the bank will "bounce" it, meaning it will not honor the payment. This can lead to various legal and financial repercussions for the check writer, including bank fees, penalties, and potential criminal charges depending on the jurisdiction and intent.

Here are some examples illustrating a dry check:

• Scenario: Sarah writes a check for $300 to her landlord for her monthly rent, anticipating that her paycheck will be deposited into her account before the landlord cashes it. However, her paycheck is unexpectedly delayed, and when the landlord deposits the check, Sarah's account only contains $50.

  Explanation: This is a dry check because there were insufficient funds ($50) in Sarah's account to cover the $300 check when it was presented for payment. Her bank would likely return the check unpaid to the landlord, and both Sarah and her landlord might incur fees.

• Scenario: A small business, "Green Gardens Landscaping," issues a check for $1,500 to a supplier for new gardening equipment. Unbeknownst to the owner, a large client payment they were expecting was delayed, leaving their business account with only $1,000 when the supplier attempts to deposit the check.

  Explanation: This constitutes a dry check because Green Gardens Landscaping's account lacked the full $1,500 required to honor the check at the time of deposit. The supplier would not receive payment, and the business would likely incur bank fees for the returned check.

• Scenario: Mark purchases a new television from an electronics store and pays with a personal check for $750. He miscalculates his current bank balance, and his account only contains $600. When the store deposits the check into their business account, it is returned unpaid by Mark's bank.

  Explanation: Mark's check is a dry check because his account did not hold the necessary $750 to cover the purchase. The electronics store would not receive payment, and Mark would likely face bank fees for the insufficient funds, potentially along with additional charges from the store for the returned check.