Bank records show that the account was closed on March 8 and that it had negative balances since February 10. Did Kelm illegally issue a bad check? Explain
On February 10, Kelm secured a loan for $6,000 from Ms. Joan Williams. Kelm told Williams that the loan was to finance a real estate transaction. Five days later, Ms. Williams received a check drawn by Kelm in the amount of $6,000 from Kelm’s attorney. Although the check was dated February 15, Kelm claims that she delivered the check to her attorney on February 10. The following week, Ms. Williams learned the check was uncollectible. Subsequently, Williams received assurances from Kelm but was unsuccessful in her efforts to obtain money from the drawee’s bank. When Williams deposited the check, it was returned with a notation that it should not be presented again and that no account was on file. Bank records show that the account was closed on March 8 and that it had negative balances since February 10. Did Kelm illegally issue a bad check? Explain.
The date on the check provides the evidence of issuance of check. There is no evidence proved that the check was written on February 10. Unworthy checks refer to issuing checks even when the account holder knows that there is lack of funds in the account. Individual J also has not gotten back the funds from Individual K, which can also be presumed as a motive to defraud Individual J.
Individual K issued check from personal account, so Individual K must have been aware of the balance available in the personal account. The check was also issued on the date when the balance became insufficient. The date on the check is February 15, so Individual K must have been aware of insufficient balance in the account and stopped the transaction before presentation. Knowingly issuing a bad check is a crime that is punishable by law and considered illegal.
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