Insufficient Funds
/ˌɪnsəˈfɪʃənt fʌndz/
Definitions
- (n.) A financial state where an account lacks enough money to cover a transaction, causing a payment to be declined or a check to bounce.
The bank rejected his check due to insufficient funds.
Related terms
See also
Commentary
Commonly appears in banking and contract contexts; precise wording in contracts should specify remedies or penalties for insufficient funds to avoid disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.