|
TERMS USED IN BANKING
-
NSF or Not Sufficient Funds
Not Sufficient Funds or Insufficient
Funds have the same meaning. What it
means is, when the check came for
clearance to the bank of the account
holder, the account did not have
sufficient funds for the check to be
cleared.
When this happens the check can be
deposited again unless the seal spelling
“Do Not Redeposit” is stamped on the
check.
-
UCF or Uncollected Funds Hold
These are items that are sent back due
to the funds still not available in the
account. However, it is seen in the
entry but it will not yet be cleared.
This happens when you deposit $1000 in
to your account and it has not yet been
cleared. If you deposit the money on
Monday then it will be cleared either on
Tuesday or Wednesday. Therefore, a check
for Wednesday cannot be cleared. In this
case the item can be deposited again.
This is referred by other terms such as
Stop Payment Item, Stop Payment Check,
Check Stop and Stop Pay. If your draft
or check has this seal on it when it is
returned to you then, it means that the
holder of the account has revoke his
authorization. The item cannot be
deposited again.
This is also called as “Account Closed”.
When your item is returned with “Closed
Account” stamped on it, it means that
the account has been terminated by the
account holder. These items cannot be
deposited again as there is no chance of
the item being cleared. Your only option
is to get another check or draft from
the person who owes you the money and
deposit it.
-
UTL or Unable to Locate Account
This means that the bank is not able to
find an account associated with the
information provided. This mostly
happens with check draft or check by
phone because there is a chance to enter
wrong information. In this case the
wrong information will be circled out
and sent back.
-
Blocked Account or Frozen Account
Drafts and checks returned with this
seal means that the account holder’s
account is frozen by the bank. This can
happen due to several reasons such as
court order, wage garnishment, IRS tax
lien or a divorce judgement. These
checks cannot be deposited again.
-
Expired or Stale Dated Check
Such checks have become invalid because
they have passed the date of expiry for
that check as determined by the issuer
of the check. This may vary from 7 to
180 days.
These checks have a future date on them.
Hence, the bank was not able to clear
them. However, on or after the date, the
check can be re - deposited.
The reason for this is that the
depositor of the cheque has not endorsed
the check. These checks can be re –
deposited after the depositor signs
behind the check and deposits it again.
|
