A person with a bank account writes a bad check (also known as a non-sufficient funds or NSF check) when he deliberately or with knowledge writes a check for an amount of funds he knows are not available in the account. The crime of writing a bad check may also occur when a person writes a check on an account that has been closed. Another bad check scheme that may result in criminal charges occurs when an account holder writes a check for an amount in excess of the funds in the account, and deposits the check in a second account (often at a different bank)—and then withdraws the funds from the second account before the check is presented to the first bank for payment.

Bad check laws vary from state to state, and are usually located in the state’s penal or criminal code (statutes). Banks and criminal prosecutors recognize that a person can inadvertently write a check for more than the funds on deposit in their account, and not every instance will result in criminal charges. But many state laws have an expansive definition of the required knowledge or deliberate intent to write a bad check, and a criminal prosecutor does not have to prove a defendant charged with a bad check offense knew exactly how much money was in the account when the defendant wrote the check to prove the defendant knew he was writing a bad check or deliberately wrote a bad check.

In Kentucky, writing a bad check, also known as issuing a check with non-sufficient funds (NSF), is addressed under Kentucky Revised Statutes (KRS) Chapter 514.030. This statute considers it a crime to issue a check when a person knows that there are not enough funds in their account to cover the amount, or if the account is closed. The severity of the offense can range from a misdemeanor to a felony, depending on the amount of the check. For checks under $500, it is generally treated as a misdemeanor, while larger amounts can be classified as a felony. The law also covers situations where an individual writes a check with insufficient funds and then withdraws money from another account before the check is processed. While accidental overdrafts are not typically prosecuted, the state's laws allow for the presumption of intent to defraud if a check is not honored within a certain period after the payee has given notice to the drawer. To avoid criminal charges, the drawer usually has a chance to make good on the check. Repeat offenses or patterns of writing bad checks can lead to more severe charges and penalties.