570.220. Check kiting, penalty--financial institution and collected funds defined.

Check kiting, penalty--financial institution and collected fundsdefined.

570.220. 1. A person commits the crime of check kiting ifhe, pursuant to a scheme or artifice to defraud, obtains moneyfrom a financial institution by drawing a check against anaccount in which there are not sufficient collected funds to paythe check and, as part of the scheme or artifice, he purports tocover that check by depositing in such account another checkdrawn against insufficient collected funds.

2. For purposes of this section, the term "financialinstitution" shall mean a bank, trust company, savings and loanassociation, or credit union; "check" shall include any check,draft, negotiable order of withdrawal, or similar instrument usedto transfer or withdraw funds held in a deposit account at afinancial institution; and the term "collected funds" shall meanthat portion of a deposit account representing checks and othercredits as to which the depositary has directly and affirmativelyverified that final payment has been made or, in the alternative,with respect to checks as to which at least ten business dayshave elapsed, without return of the checks, since presentationfor payment.

3. Check kiting is a class C felony.

(L. 1985 H.B. 408 § 570.210)