When DAUD ckecks happen?

Answer 1

DAUD is the acronym for checks "Drawn Against Uncollected Deposits." Such checks, which are not sufficiently funded by cash, are generally not honored by banks. Further, a DAUD accommodation is a credit accommodation granted to a few and select bank clients through the withdrawal of uncollected or uncleared check deposits from their current account. Under the petitioner Bank’s standard operating procedures, DAUD accommodations may be granted only by a bank officer upon express authority from its Executive Committee or Board of Directors.