Michigan Criminal Code: Checks Without Sufficient Funds

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Check, draft, or order for payment of money; making, drawing, uttering, or delivering without sufficient funds with intent to defraud; violation; penalties; enhanced sentence based on prior convictions.

Published: 10 months ago

THE MICHIGAN PENAL CODE (EXCERPT) Act 328 of 1931

750.131 Check, draft, or order for payment of money; making, drawing, uttering, or delivering without sufficient funds with intent to defraud; violation; penalties; enhanced sentence based on prior convictions. Sec. 131.

(1) A person shall not make, draw, utter, or deliver any check, draft, or order for the payment of money, to apply on account or otherwise, upon any bank or other depository with intent to defraud and knowing at the time of the making, drawing, uttering, or delivering that the maker or drawer does not have sufficient funds in or credit with the bank or other depository to pay the check, draft, or order in full upon its presentation. (2) A person shall not make, draw, utter, or deliver any check, draft, or order for the payment of money, to apply on account or otherwise, upon any bank or other depository with intent to defraud if the person does not have sufficient funds for the payment of the check, draft, or order when presentation for payment is made to the drawee. This subsection does not apply if the lack of funds is due to garnishment, attachment, levy, or other lawful cause and that fact was not known to the person when the person made, drew, uttered, or delivered the check, draft, or order. (3) A person who violates this section is guilty of a crime as follows: (a) If the amount payable in the check, draft, or order is less than $100.00, as follows: (i) For a first offense, a misdemeanor punishable by imprisonment for not more than 93 days or a fine of not more than $500.00, or both. (ii) For an offense following 1 or more prior convictions under this section or a local ordinance substantially corresponding to this section, a misdemeanor punishable by imprisonment for not more than 1 year or a fine of not more than $1,000.00, or both. (b) If the amount payable in the check, draft, or order is $100.00 or more but less than $500.00, as follows: (i) For a first or second offense, a misdemeanor punishable by imprisonment for not more than 1 year or a fine of not more than $1,000.00 or 3 times the amount payable, whichever is greater, or both imprisonment and a fine. (ii) For an offense following 2 or more prior convictions under this section, a felony punishable by imprisonment for not more than 2 years or a fine of not more than $2,000.00, or both. For purposes of this subparagraph, however, a prior conviction does not include a conviction for a violation or attempted violation of subdivision (a). (c) If the amount payable in the check, draft, or order is $500.00 or more, a felony punishable by imprisonment for not more than 2 years or a fine of not more than $2,000.00 or 3 times the amount payable, whichever is greater, or both imprisonment and a fine. (4) If the prosecuting attorney intends to seek an enhanced sentence based upon the defendant having 1 or more prior convictions, the prosecuting attorney shall include on the complaint and information a statement listing the prior conviction or convictions. The existence of the defendant's prior conviction or convictions shall be determined by the court, without a jury, at sentencing or at a separate hearing for that purpose before sentencing. The existence of a prior conviction may be established by any evidence relevant for that purpose, including, but not limited to, 1 or more of the following: (a) A copy of the judgment of conviction. (b) A transcript of a prior trial, plea-taking, or sentencing. (c) Information contained in a presentence report. (d) The defendant's statement. (5) If the sentence for a conviction under this section is enhanced by 1 or more prior convictions, those prior convictions shall not be used to further enhance the sentence for the conviction pursuant to section 10, 11, or 12 of chapter IX of the code of criminal procedure, 1927 PA 175, MCL 769.10, 769.11, and 769.12.

History: 1931, Act 328, Eff. Sept. 18, 1931 ;-- CL 1948, 750.131 ;-- Am. 1962, Act 65, Eff. Mar. 28, 1963 ;-- Am. 1984, Act 277, Eff. Mar. 29, 1985 ;-- Am. 1998, Act 312, Eff. Jan. 1, 1999 Former Law: See section 1 of Act 271 of 1919, being CL 1929, § 12064; and Act 142 of 1923.

Understanding Michigan Law on Check Fraud: Section 750.131 of the Michigan Penal Code Simplified

Section 750.131 of the Michigan Penal Code addresses the issue of check fraud or writing bad checks. Here is a plain English explanation of the section:

Prohibited Activities:

  1. You're not allowed to make, draw, issue, or deliver any check, draft, or order for the payment of money on any bank or other depository with the intention to defraud. This includes if you know that you don't have sufficient funds or credit in the bank to cover the amount of the check upon its presentation.
  2. Similarly, you're not allowed to issue any check, draft, or order for the payment of money with the intention to defraud, if you don't have sufficient funds to cover the payment when it is presented for payment. However, if the insufficient funds are due to legal reasons like garnishment, attachment, levy, or other lawful cause, and you didn't know about it when issuing the check, this law doesn't apply.

Penalties:

  1. If the amount payable in the check is less than $100:
    • For a first offense, it's a misdemeanor punishable by up to 93 days in jail, a fine up to $500, or both.
    • For subsequent offenses, it's a misdemeanor punishable by up to 1 year in jail, a fine up to $1,000, or both.
  2. If the amount payable in the check is $100 or more but less than $500:
    • For a first or second offense, it's a misdemeanor punishable by up to 1 year in jail, a fine up to $1,000 or 3 times the payable amount (whichever is greater), or both.
    • For subsequent offenses, it's a felony punishable by up to 2 years in jail, a fine up to $2,000, or both.
  3. If the amount payable in the check is $500 or more, it's a felony punishable by up to 2 years in jail, a fine up to $2,000 or 3 times the payable amount (whichever is greater), or both.

Additional Rules:

If the prosecuting attorney intends to seek a higher sentence based on your having one or more prior convictions, they must include a statement listing the prior convictions in the complaint and information. The existence of your prior convictions will be determined by the court, either at sentencing or at a separate hearing before sentencing. The existence of a prior conviction can be established by any relevant evidence, including a copy of the judgment of conviction, a transcript of a prior trial or sentencing, information in a presentence report, or your own statement. If your sentence is enhanced due to prior convictions, those convictions can't be used to further enhance the sentence.

Importance of Understanding Section 750.131

This law aims to prevent fraudulent activities related to checks, drafts, and other forms of payment orders. It sets a clear expectation that individuals are required to have sufficient funds to cover the payments they issue. Not understanding or complying with this law can result in severe consequences, including fines, imprisonment, and a record of felony conviction.

This should be used for informational and general purposes only and should not be construed as legal advice or relied on aside for general information that may contain opinion.


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