collection float

The total time period between when a check is prepared by the remitter and when the check is presented to the remitter's bank. The float also includes the mail float, processing float, and transit float, and is considered the disbursement float for the organization that issues the check. American Banker Glossary
————
The period between the time is a check is deposited in an account and the time funds are made available. Bloomberg Financial Dictionary

Financial and business terms. 2012.

Look at other dictionaries:

  • Collection float — The negative float that is created between the time when you deposit a check in your account and the time when funds are made available. The New York Times Financial Glossary …   Financial and business terms

  • bank collection float — See bank float; check clearing float The time that elapses between when a check is deposited into a bank account and when the funds are available to the depositor, during which period the bank is collecting payment from the payer s bank.… …   Financial and business terms

  • Bank collection float — The time that elapses between when a check is deposited into a bank account and when the funds are available to the depositor, during which period the bank is collecting payment from the payer s bank. The New York Times Financial Glossary …   Financial and business terms

  • float — The use of funds generated as a result of timing differences in the check clearing system. For banks, float occurs because debits given by the Federal Reserve to a bank s reserve account for checks being cleared can be received prior to the time… …   Financial and business terms

  • float — The delay in processing transactions by banks and others which may permit the interest free use of funds for brief periods. Checks that have been credited to the depositor s bank account, but not yet debited to the drawer s bank account. The time …   Black's law dictionary

  • float — 1 n 1: an amount of money represented by checks outstanding and in process of collection 2: the time between a transaction (as the writing of a check or a purchase on credit) and the actual withdrawal of funds to cover it float 2 vi of a currency …   Law dictionary

  • Collection item — A collection item (also called a noncash item) is an item presented to a bank for deposit that the bank will not, under its procedures, provisionally credit to the depositor s account or which the bank cannot (due to provisions or law or… …   Wikipedia

  • float — 1) a cork, wood, glass, metal or plastic structure used to support or mark the position of a net. See also bombarda and glass float 2) a plastic, cork or wood device that enables a baited hook to be suspended in the water column and enables fish… …   Dictionary of ichthyology

  • float — I. noun Etymology: Middle English flote boat, float, from Old English flota ship; akin to Old High German flōz raft, stream, Old English flēotan to float more at fleet Date: before 12th century 1. an act or instance of floating 2. something that… …   New Collegiate Dictionary

  • collection account — A bank account opened for the specific purpose of reducing bank float for remittances from specific customers or groups of customers, usually those that are abroad or who pay in a foreign currency …   Accounting dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.