DUD CHEQUE Meaning and
Definition
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A dud cheque refers to a financial instrument, typically in the form of a cheque, that has been dishonored or bounced due to insufficient funds in the associated bank account. Often regarded as a form of fraudulent or deceptive practice, a dud cheque is issued by an individual or company with full knowledge or intent that the cheque will not be honored upon presentation for payment.
When a cheque is presented for clearance, the recipient's bank attempts to transfer the specified amount from the issuer's account to the recipient's account. But if the issuer's account does not have sufficient funds, the cheque is returned unpaid, resulting in a dud cheque. This can cause financial loss and inconvenience to the recipient, who may have already delivered goods or services in anticipation of payment.
Dud cheques can be intentionally issued to deceive or defraud recipients, particularly when there is no intention to fulfill the financial obligation. Such fraudulent practices can lead to legal consequences, including penalties or fines.
The issuance and receipt of dud cheques is an illegal act in most jurisdictions, and legislation is in place to discourage such practices. To mitigate the risk of accepting dud cheques, recipients often employ measures such as verifying the account balance before accepting payment or requesting alternative forms of payment like cash, electronic transfers, or certified cheques.
Common Misspellings for DUD CHEQUE
- sud cheque
- xud cheque
- cud cheque
- fud cheque
- rud cheque
- eud cheque
- dyd cheque
- dhd cheque
- djd cheque
- did cheque
- d8d cheque
- d7d cheque
- dus cheque
- dux cheque
- duc cheque
- duf cheque
- dur cheque
- due cheque
- dud xheque
- dud vheque
Etymology of DUD CHEQUE
The term "dud cheque" is derived from the words "dud", meaning ineffective, useless, or non-functional, and "cheque", referring to a written order to a bank to pay a specific amount of money to someone. The term originally originated from the domain of banking and finance, specifically referring to a cheque that cannot be processed and honored by the bank due to insufficient funds in the account or other reasons. It is often used to describe a fraudulent or worthless cheque. The etymology of "dud" itself is uncertain, but it dates back to the late 18th century and was initially used to describe an unproductive or unprofitable thing.
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