worthless

Destitute of worth, of no value or use. Spring City Foundry Co. v. Commissioner of Internal Revenue, 292 U.S. 182, 54 S.Ct. 644, 78 L.Ed. 1200

@ worthless check

A check drawn on a bank account which is no longer open or on an account with funds insufficient to cover the check. Giving a worthless check is the making, drawing, issuing or delivering or causing or directing the making, drawing, issuing or delivering of any check, order or draft on any bank or depository for the payment of money or its equivalent with intent to defraud and knowing, at the time of the making, drawing, issuing or delivering of such check, order or draft as aforesaid, that the maker or drawer has no deposit in or credits with such bank or depository or has not sufficient funds in, or credits with, such bank or depository for the payment of such check, order or draft in full upon its presentation. Such act is a misdemeanor in most states.

See e.g. Model Penal Code, No. 224.5.

See also bad check

- check kiting

@ worthless securities

A loss (usually capital) is allowed for a security that becomes worthless during the year. The loss is deemed to have occurred on the last day of the year. Special rules apply to securities of affiliated companies and small business stock.

See I.R.C. No. 165

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