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Simple English definitions for legal terms
not sufficient funds
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A quick definition of not sufficient funds:
NOT SUFFICIENT FUNDS: When someone writes a check, it means they promise to pay a certain amount of money. But if they don't have enough money in their bank account, the check can't be cashed. This is called "not sufficient funds" or NSF for short. It's like trying to buy a toy with only a few pennies - it's not enough to pay for it.
A more thorough explanation:
Definition: When a check is dishonored because the person who wrote the check does not have enough money in their bank account to cover the payment. This is also known as insufficient funds and is abbreviated as NSF.
Example: John wrote a check for $500 to pay his rent, but when the landlord tried to cash the check, it was returned with the notation "NSF" because John did not have enough money in his account to cover the payment.
Explanation: This example illustrates how a check can be dishonored due to insufficient funds. John wrote a check for $500, but he did not have enough money in his account to cover the payment. When the landlord tried to cash the check, it was returned with the notation "NSF" to indicate that the check could not be honored due to insufficient funds.