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 Indiana, writing a bad check, also known as issuing a check with non-sufficient funds (NSF), is addressed under Indiana Code IC 35-43-5-5. A person commits the offense when they knowingly or intentionally issue or deliver a check when they have no account with the drawee at the time of issuance, or they know that the check will not be paid upon presentation. This can also include situations where a person writes a check from an account with insufficient funds and then withdraws the money from another account before the check clears. The severity of the offense can range from a Class A misdemeanor to a Level 6 felony, depending on the amount of the check and other factors. While not every instance of a bounced check is considered criminal, Indiana law allows for the presumption of intent to defraud if the individual fails to make good on the payment within ten days after receiving notice of the NSF check. It is important for individuals to understand that even if they did not know the exact balance in their account, they could still face criminal charges if it is believed that they had the intent to defraud or knowingly issued a bad check.