Simple English definitions for legal terms
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A hot check is a type of bad check that is not honored by a bank because the account does not have enough money or does not exist. It is also called a worthless check, rubber check, bounced check, cold check, bogus check, false check, or dry check. A check is a written order to a bank to pay a certain amount of money to a person or organization. There are different types of checks, such as personal checks, cashier's checks, and traveler's checks. A canceled check is one that has been paid by the bank, while a postdated check is one that is dated for a future date. A raised check is one that has been altered to increase the amount, which is illegal. Banks may choose not to honor stale checks that have been outstanding for more than six months.
Definition: A check that is not honored because the account either contains insufficient funds or does not exist. It is also known as a bad check, worthless check, rubber check, bounced check, cold check, bogus check, false check, or dry check.
Example: John writes a check for $500 to pay his rent, but he does not have enough money in his account to cover the amount. The landlord tries to cash the check, but it bounces because it is a hot check.
Explanation: The example illustrates how a hot check is a check that is not honored by the bank because the account does not have enough funds or does not exist. In this case, John wrote a check for $500, but he did not have enough money in his account to cover the amount. When the landlord tried to cash the check, it bounced, and it was considered a hot check.