(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 defrauding any regulated institution or other depository, any vendor of goods, materials, or services, or for the purpose of deception of any investor, potential investor, 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 not exceeding five hundred dollars ($500), or imprisoned not exceeding one year, or both.

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Terms Used In Rhode Island General Laws 19-9-27

  • Kiting: Writing a check in an amount that will overdraw the account but making up the deficiency by depositing another check on another bank. For example, mailing a check for the mortgage when your checking account has insufficient funds to cover the check, but counting on receiving and depositing your paycheck before the mortgage company presents the check for payment. Source: OCC
  • person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6

(b)  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 defrauding any regulated institution or other depository or any vendor of goods, materials, or services, or for the purposes of deception of any investor, potential investor, or purchaser as to the financial condition or status of that person, in an amount exceeding one thousand dollars ($1,000), shall be fined not exceeding 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 elapses between the deposit or negotiation of a check, draft, or other negotiable instrument in one regulated institution or other depository and its collection or presentment in another regulated institution or other depository with the intent to defraud.

History of Section.
P.L. 1995, ch. 82, § 47.