Legal Definitions - not sufficient funds

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.