Opinion ID: 793369
Heading Depth: 7
Heading Rank: 2

Heading: ncb

Text: 279 Defendants had zero balance accounts in connection with a controlled disbursement system with NCB. The zero balance accounts entailed a system that had two types of accounts: a main account, and separate disbursement accounts. Defendants could write checks drawn from the disbursement accounts. In turn, the disbursement accounts would draw from the main account. If the main account was negative, then NCB would ask Defendants to cover the negative amount. 280 This system of controlled disbursement did allow Defendants to run a negative balance, but so long as they covered that balance with good funds. As the government correctly notes, [t]his controlled disbursement account was established with the understanding that `good funds' would be deposited to cover checks clearing from the zero-balance account. But, [Defendants] did not deposit good funds. Instead, they deposited checks that were not collectible. (Pl.'s Br. 73.) 281 No NCB official gave Defendants permission to kite checks; in fact, the officials did not even know about the activity until the kite collapsed. 282