§ 19-9-27 - Check kiting.
SECTION 19-9-27
§ 19-9-27 Check kiting. – (a) Notwithstanding the provisions of § 19-9-24 or 19-9-25, any person,natural or otherwise, who shall utilize any scheme, device or artifice,commonly known as a check kite or check kiting, for the purposes of defraudingany regulated institution or other depository, any vendor of goods, materialsor services, or for the purpose of deception of any investor, potentialinvestor or purchaser as to the financial condition or status of that person,in an amount not exceeding one thousand dollars ($1,000) shall be fined notexceeding five hundred dollars ($500) or imprisoned not exceeding one year, orboth.
(b) Notwithstanding the provisions of § 19-9-24 or19-9-25, any person, natural or otherwise, who shall utilize any scheme, deviceor artifice, commonly known as a check kite or check kiting, for the purposesof defrauding any regulated institution or other depository or any vendor ofgoods, materials or services, or for the purposes of deception of any investor,potential investor or purchaser as to the financial condition or status of thatperson in an amount exceeding one thousand dollars ($1,000), shall be fined notexceeding ten thousand dollars ($10,000) or imprisoned not exceeding ten (10)years, or both.
(c) For the purposes of this section, a "check kite" or"check kiting" means the practice of taking advantage of the time that elapsesbetween the deposit or negotiation of a check, draft or other negotiableinstrument in one regulated institution or other depository and its collectionor presentment in another regulated institution or other depository with theintent to defraud.