Is an individual responsible for an NSF corporate business check?
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Is an individual responsible for an NSF corporate business check?
I have recently been contacted regarding a couple of checks that were written 2 years ago. The checks were for a corporation, which I am no part of, but I was an authorized signatory on the account. I have been told that the checks were returned NSF and they are holding me personally responsible for paying the debt. Can I be held personally responsible for a business not making good on their checks? The corporation was in one state and the checks were written in another.
Asked on May 17, 2012 under Business Law, Connecticut
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Under the laws of all states in this country, the person or entity to whom a check is issued to but which does not clear due to insufficient funds is responsible for making good on the funds. In your situation, since the checks were issued to the corporate entity as the payee and not you, the corporate entity would be responsible for making good on the checks.
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