The term Non sufficient funds is used in the banking industry to indicate that a check cannot behonored because insufficient funds are available in the account on which the instrument was drawn - "bad check" is the informal reference to the term “non-sufficient fundsâ€.A bad check is acheckthat abankrefuses to honor because there is not enoughmoneyin thepayer'schecking account to cover the amount of the check, or because of a closed bank account.It is also called an NSF check, a bad check or a returned check. An NSF check is considered an overdraft.Law treats issuing of bad check as a form of larceny and is generally punished as a misdemeanor. However in some jurisdictions it is treated as a more serious offense if the amount of the check is substantial. In most jurisdictions, the party who signed the check is normally found guilty, under bad check laws, for passing a fraudulent check. However, the person who knowingly passed the bad check on, or a third party who endorsed the check and passed it on to another party can also be found guilty.If someone has written a bad check and it is returned NSF (non sufficient funds), the best course of action to avoid possible criminal and civil penalties is to immediately contact the individual or company that the check was issued to, and make arrangements to pay them. An affirmative defense is usually provided if the maker of the check, upon notice of dishonor, promptly satisfies the payee.The state laws dealing with bad checks can differ by state, and are explained in the following link: BAD CHECK LAWS BY STATEDisclaimer:This article is a guideline and is not legal advice - No information here iswarrantedorguaranteedfor any purpose., as laws vary from state to state, it is not intended to be an all inclusive discussion of the law applicable to any action in your state. Please consult with a legal professional when appropriate - if you are charged with a crime, contact a criminal defense attorney.[video=]