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 New Jersey, writing a bad check is considered a criminal offense under N.J.S.A. 2C:21-5. A person is guilty of an offense if they issue or pass a check for the payment of money knowing that it will not be honored by the drawee. The crime is considered a disorderly persons offense if the amount of the check is less than $200. It is a fourth-degree crime if the amount is at least $200 but less than $1,000, a third-degree crime if the amount is at least $1,000 but less than $75,000, and a second-degree crime if the amount is $75,000 or more. The law presumes that the issuer knew the check would not be honored if they had no account with the drawee or insufficient funds at the time of issuance or within 10 days after issuance. However, if the payee or holder knows or has reason to believe that the drawer did not have sufficient funds, this may be a defense to the charge. The penalties for writing a bad check can include fines, restitution, and imprisonment. It is important to note that not every instance of a bounced check is treated as a criminal act; inadvertent errors can occur, but repeated offenses or checks written with clear intent to defraud can lead to criminal charges.