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TeachMeFinance.com - explain Kiting historic definition... Kiting -- in the bank in time to meet the first check. Two or three days elapse before the second check reaches the bank and before its arrival another check has been made out and the cash obtained for it and deposited. So the process continues. A person engaged in kiting may arrange to exchange checks with another person. Thus, if he has issued a check which overdraws his account he makes out a new check and exchanges it for a check drawn by the other person on another bank, which latter check he (the first person) deposits in his own bank to meet his own first check. He may draw and exchange a third check to meet his second check; and so on. The person engaged in kiting may gain time by sending his checks to other places places as remote from the one in which is situated his bank as possible. The more remote the places the longer the checks are in reaching the bank upon which they are drawn for payment. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.