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Non-Sufficient Funds Cheques

When a cheque with non-sufficient funds (NSF) is rejected by a bank, Financial Services will return the original cheque, with an explanation, to the originating department for follow-up with the payee.

In the meantime, the amount of the NSF cheque will be reversed in the department’s account balance and bank fees will be charged back to the department as well. Here are some of the reasons cheques may be rejected by a bank:

  • account has insufficient funds

  • payment stopped

  • post/stale dated

  • account closed

  • change not initialed

  • body and figures differ

  • funds frozen or not cleared

  • signatures are missing, irregular, illegible or unauthorized