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LSDefine
Simple English definitions for legal terms
dry check
Read a random definition: net operating loss (NOL)
A quick definition of dry check:
A check is a piece of paper that you can use to pay for things. It's like a promise to give someone money. A bad check is when the person who wrote the check doesn't have enough money in their bank account to pay for it. There are different types of checks, like a cashier's check that a bank gives you, or a personal check that you write from your own bank account. You can also postdate a check, which means you write a future date on it for when it can be cashed. It's important to make sure you have enough money in your account before you write a check!
A more thorough explanation:
Definition: A type of bad check that is not honored because the account either contains insufficient funds or does not exist.
Example: John writes a check for $500 to pay his rent, but he doesn't have enough money in his account to cover it. When the landlord tries to cash the check, it bounces because it's a dry check.
Explanation: A dry check is a type of bad check that is not backed by sufficient funds in the account. When the recipient tries to cash the check, it bounces and is returned unpaid. This can result in fees for both the issuer and the recipient, as well as damage to the issuer's credit score. It's important to make sure you have enough money in your account before writing a check to avoid writing a dry check.