If the federal government freezes my business accounts through a federal judge, and I have checks out on the account that come through NSF, can I be charged criminally for writing bad checks even though I had no control over the accounts? Do banks have a different stamp labeled "accounts froze"?
Some banks have ways to dishonor checks with "account frozen" or words to that effect. However, even if a bank bounces a check on a frozen account using "insufficient funds" as the reason, you would have an opportunity to make your checks good before any reasonable person would take the steps to enter a complaint. You'd have a strong case if you had issued the check before your account was frozen. However, your argument gets weak if you write a check once you know your funds have been tied up.
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Some banks have ways to dishonor checks with "account frozen" or words to that effect. However, even if a bank bounces a check on a frozen account using "insufficient funds" as the reason, you would have an opportunity to make your checks good before any reasonable person would take the steps to enter a complaint. You'd have a strong case if you had issued the check before your account was frozen. However, your argument gets weak if you write a check once you know your funds have been tied up.
