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Word of the Week - CHEQUE KITTING

 [The secured creditor bank] says that the Debtor and its related corporation ... (the “Related Party”) were involved in a scheme [similar to the commonly known scheme of “cheque kitting”] whereby cheques drawn against the [bank] account were matched by fictitious deposits of cheques drawn on the Related Party's account. The result was that [the bank] honoured cheques for payment out of the [bank] account when such were not covered by sufficient funds on deposit.

616813 N.B. Ltd., Re (2012)
2012 CarswellNB 137 (N.B. Q.B.) at para. 15
Glennie J.
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