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Insufficient Funds
Source:
Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority and you can order
it here)
A term used
in banking practice when checks are returned not payable because the drawer
does not have sufficient monies in his account.
When a check for which the drawer has insufficient funds is presented
for collection through the clearinghouse or otherwise, the drawee bank
returns it to the presenting bank for credit (by messenger or otherwise)
with a memorandum slip attached on which the words "insufficient
funds," or "not sufficient funds," are printed.
When
a check is presented for payment and a doubt exists, the paying teller
examines the account of the drawer to see that sufficient funds are on
hand.
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