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 Texas, writing a bad check can be considered a criminal offense under the Texas Penal Code. The offense occurs when a person writes a check knowing that there are insufficient funds in their account, or if the account is closed. This is often referred to as issuing a bad check or check fraud. The severity of the offense can range from a misdemeanor to a felony, depending on the amount of the check and other circumstances. Texas law does recognize that mistakes can happen, and not every case of a bounced check will lead to criminal charges. However, the state does not require prosecutors to prove the exact balance in the account at the time the check was written; it is sufficient to show that the person had knowledge that the funds were insufficient. For a check to be considered a bad check on purpose, the writer must have intended to defraud or knew there was a lack of funds. If convicted, penalties can include fines, restitution, and possibly jail or prison time. It's important for individuals to manage their bank accounts carefully to avoid the potential legal consequences of writing bad checks.
