# Check-Kiting Agreement
**This Check-Kiting Agreement ("Agreement") is made and entered into as of [Date], by and between:**
**[Party A Name]**
**Address:** [Party A Address]
**City, State, Zip:** [City, State, Zip]
**Email:** [Party A Email]
**Phone:** [Party A Phone Number]
**(hereinafter referred to as "Party A")**
AND
**[Party B Name]**
**Address:** [Party B Address]
**City, State, Zip:** [City, State, Zip]
**Email:** [Party B Email]
**Phone:** [Party B Phone Number]
**(hereinafter referred to as "Party B")**
### WHEREAS
Party A and Party B desire to enter into an agreement concerning the practice of check-kiting, which is hereby defined as the act of writing checks on accounts with insufficient funds to temporarily inflate the balances of those accounts.
### NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties agree as follows:
## 1. **Definitions**
For the purposes of this Agreement, the following terms shall have the meanings assigned to them:
- **"Check-Kiting"**: The practice of writing checks from one bank account to another, without sufficient funds in either account to cover the checks being issued, typically with the intent to take advantage of the float time between banks.
## 2. **Responsibilities of Party A**
- Party A shall provide Party B with written authorization to deposit checks from Party A's account into Party B's account under the terms herein.
- Party A agrees to keep sufficient records of all transactions relating to the check-kiting activity.
## 3. **Responsibilities of Party B**
- Party B agrees to deposit checks written by Party A and to refrain from withdrawing funds until such checks have cleared.
- Party B acknowledges the legal and financial risks involved in check kiting and agrees to take all necessary precautions.
## 4. **Indemnification**
Each party agrees to indemnify and hold harmless the other party from any potential losses, damages, or legal liabilities arising from check-kiting activities carried out in accordance with this Agreement.
## 5. **Term and Termination**
- This Agreement shall commence on the effective date and continue until terminated by either party with a written notice of at least 30 days to the other party.
- This Agreement shall terminate immediately if either party engages in any illegal activity or if one of the parties becomes insolvent.
## 6. **Governing Law**
This Agreement shall be governed by and construed in accordance with the laws of the State of [State].
## 7. **Miscellaneous**
- This Agreement may not be amended or modified except in writing signed by both parties.
- If any provision of this Agreement is found to be unlawful, void, or for any reason unenforceable, then that provision shall be deemed severable from this Agreement and shall not affect the validity and enforceability of any remaining provisions.
### IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.
**Party A**:
__________________________
[Party A Name]
Date: _____________________
**Party B**:
__________________________
[Party B Name]
Date: _____________________
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**Note:** This contract is for illustrative purposes only and does not represent legal advice. The practice of check-kiting is illegal and can lead to criminal charges. It is highly recommended to seek professional legal counsel before entering any agreements relating to financial transactions.