A bad check refers to a check in which the drawer's actual deposit with the payee is insufficient to pay the amount of the note when the check holder requests payment. The "Negotiable Instruments Law of the People's Republic of China" stipulates that the amount of the check issued by the check drawer shall not exceed the amount of the check actually deposited with the payee, that is, a bad check shall not be issued, which requires the drawer to issue a bad check from the date of issue. From the time the payment is completed, it is guaranteed that there are sufficient funds in the payer's deposit account to cover the amount of the check. Those who issue bad checks to defraud property will be held criminally responsible in accordance with the law. If the act of issuing bad checks to defraud property is minor and does not constitute a crime, the Negotiable Instruments Law stipulates that administrative penalties will be imposed in accordance with relevant national regulations.

Penalty for bad checks According to the regulations of the Central Bank, the check certificate issued by the drawer will remain unchanged after the check is accepted nationwide, and the payment period for check payment will still be 10 days; the fastest payment for check payment in other places can be made within 2 to It will arrive within 3 hours, usually within 3 working days from the date the bank accepts the check. To prevent payment risks, the maximum amount of a single check used in another place is 500,000 yuan. For check business, bank charges to customers will remain unchanged at the current standards. According to regulations, the issuance of bad checks is prohibited. The drawer writes a check and if there is insufficient balance in the account to cover the amount of the check issued, the check is a bad check. In addition, checks that do not match the reserved bank signature are also considered bad checks. At the same time, issuing bad checks will be punished according to law. If a bad check is issued or a check that is inconsistent with the reserved signature is issued without the purpose of defrauding property, the drawer will be fined 5 yuan but not less than 1,000 yuan of the face value of the check, and the holder also has the right to demand a refund. The drawer shall compensate the face amount of the check 2 as compensation; if the purpose is to defraud property, the drawer will also be held criminally responsible.

The effect of a bad check on the drawer

1. Negotiable Instrument Liability Negotiable Instrument Law is a special law of civil law. Negotiable Instrument Liability is essentially a kind of civil liability, but because of the provisions of Negotiable Instrument Law, Due to the special nature of the bill, the responsibilities of the drawer of the bill are listed separately. The drawer shall bear the following liability for the bill as guaranteed payment. According to Articles 26, 70, 71, and 94 of the Negotiable Instrument Law of the People's Republic of China and Article 22 of the Provisions of the Supreme People's Court on Several Issues Concerning the Trial of Negotiable Instrument Dispute Cases, the drawer of the check shall, in accordance with the provisions of the check, The text guarantees the payment of the check. Therefore, when the payee refuses to pay, the drawer shall be responsible for the repayment of the payee and his successors. The liability for this guaranteed payment is not limited to the face amount. When exercising the right of recourse against the drawer, the holder may request interest from the date of presentation for payment. The interest is calculated based on the corporate working capital loan interest rate for the same period stipulated by the People's Bank of China.

2. Civil Liability 1) Civil Compensation Liability "Article 107 of the Negotiable Instruments Law of the People's Republic of China" stipulates: "Other violations of the provisions of this Law other than liability for compensation in accordance with the provisions of this Law, Anyone who causes losses to others shall bear civil liability in accordance with the law. "The act of issuing a bad check is a clear violation of the provisions of my country's Negotiable Instruments Law. Therefore, the person who issues a bad check shall bear the bill liability in accordance with the law and repay the bill to the holder." In addition to the amounts and fees specified in Articles 70 and 71 of the Negotiable Instruments Law, if the act causes losses to the holder, he shall bear civil liability for compensation in accordance with the law. 2) The drawer shall compensate the holder for the amount of the check 2. Article 125 of the "Payment and Settlement Measures" stipulates that the drawer issues a bad check, a check whose signature does not match the reserved bank signature, or uses a payment password area. , if the check with wrong password is paid, the bank shall refund the check and impose a fine of 5% of the face value but not less than 1,000 yuan; the holder has the right to ask the drawer to compensate the check amount 2 for compensation. issued, the bank shall cease its issuance of checks. From the provisions of this article, it can be seen that the drawer of a bad check should not only bear the liability for the bill, but also pay compensation to the holder. Due to the nature of this compensation, it should be considered that liquidated damages are the civil liability that the drawer should bear for breach of contract. Because the check is mainly for payment of securities, and the drawer issues a bad check, it violates the stipulations of the contract, so he shall bear the liability for breach of contract.

But maybe there is no direct contractual relationship between the holder and the drawer, but through layers of recourse until the note is transferred to the person who obtained the note from the drawer, there is a contractual relationship between that person and the drawer. He is also the final bearer of responsibility. The liquidated damages shall be punitive liquidated damages. Because according to the provisions of Articles 70, 71, and 94 of the Negotiable Instruments Law, the drawer's liability for the instrument has fully compensated the holder for its losses, so the agreement on liquidated damages is of a punitive nature. . [page]

3. Administrative responsibilities 1) Fines: The issuer of a bad check shall be fined 5% of the face value but not less than 1,000 yuan. Article 104 of the Negotiable Instruments Law of the People's Republic of China stipulates: "Anyone who commits any of the acts listed in the preceding article, if the circumstances are minor and does not constitute a crime, shall be subject to administrative penalties in accordance with relevant state regulations." In the preceding article (i.e., Article 103) The third item of bill fraud listed stipulates "issuing bad checks or intentionally issuing checks that are inconsistent with the signature style or seal reserved for the person's name to defraud property." The issuance of bad checks here is considered "bill fraud." Does the issuance of a bad check require the drawer's subjective intention? Some scholars believe that since it is a kind of "bill fraud", it requires the perpetrator to be intentional, that is, the perpetrator must knowingly issue the check knowing that there is no funds at the payer's place. Making bad checks to defraud public and private property. For the act of issuing bad checks, administrative penalties will be imposed in accordance with the "Payment and Settlement Measures" of the People's Bank of China. Article 125 of the "Payment and Settlement Measures" stipulates that if the drawer issues a bad check, a check whose signature does not match the reserved bank signature, a check that uses a payment password area, or a wrong payment password, the bank shall refund the check and impose a fine based on the face value. A fine of 5% but not less than 1,000 yuan; .... For repeated checks, the bank shall stop issuing checks. The penalty procedure is in accordance with Article 239 of the "Payment and Settlement Measures": penalties for entities and individuals bearing administrative responsibility shall be implemented by commercial banks entrusted by the People's Bank of China. This is also the implementation of my country's original trial "Payment and Settlement Measures", and the fine will be regarded as the income of commercial banks. Because in actual practice, after financial institutions that handle check deposits find that a customer (drawer) has issued a bad check, they usually try to notify the customer to make up the balance before settling the account that day. If the customer fails to make up the balance in time, the commercial bank will impose a fine on the customer in accordance with the above standards, and in accordance with the provisions of Part 8-4 of the "Payment and Settlement Accounting Procedures" issued by the People's Bank of China, the commercial bank will directly deduct the fine from the customer's deposit account. Income is included in its non-operating income account. 2) Qualification penalty According to the provisions of Article 125 of the "Payment and Settlement Measures", those who repeatedly issue bad checks will be stopped from issuing checks. However, scholars have not paid enough attention to this issue, and most of them have not discussed it. This is because the competition among commercial banks in our country is fierce. In order to attract customers, commercial banks often do not fine them, let alone prohibit them from opening accounts. Moreover, because the financial order and commercial reputation have not been established, after a commercial bank is banned, It is entirely possible to open an account at other banks and other financial institutions.

4. Criminal Liability Article 103 of the "Informal Instrument Law of the People's Republic of China" stipulates: "Anyone who commits any of the following acts of instrument fraud shall be investigated for criminal liability in accordance with the law:... (3) Issuance of short positions Checks or intentionally issuing checks that are inconsistent with the original signature or seal reserved by the person to defraud property..." This is the provision of my country's "Negotiable Instruments Law" regarding criminal liability for issuing bad checks. On this basis, Article 194 of the Criminal Law of the People's Republic of China also provides clear and specific provisions on the crime of financial instrument fraud and its criminal penalties caused by the issuance of bad checks. According to this provision, the crime of bill fraud should have the following characteristics: 1. The object of the crime is a complex object, including not only the country’s financial management order, but also the property ownership of the country, financial institutions or others. 2. Objectively speaking, the perpetrator must have used financial instruments to conduct fraudulent activities with relatively large amounts. 3. The subject of the crime is a general subject, which can be an individual or a unit.

4. On the subjective side, it must be intentional, that is, the perpetrator knows that there is no deposit or insufficient deposit in his checking account and issues a check that obviously exceeds the actual deposit amount in order to defraud public and private property. If the perpetrator acted negligently, it does not constitute a crime. To distinguish between attempted and completed bills fraud, the criterion is whether property has been defrauded. If the perpetrator has committed the act but has not defrauded property, he should be punished as an attempted crime. Regarding the criminal punishment of issuing bad checks that constitutes the crime of financial instrument fraud, Article 194 of my country’s new Criminal Law stipulates: Whoever defrauds public or private property by issuing bad checks, which constitutes a crime, shall be sentenced to fixed-term imprisonment of not more than 5 years or criminal detention, and shall also be fined 20,000 yuan. If the amount is extremely large or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than 5 years but not more than 10 years, and a fine of not less than 50,000 yuan but not more than 500,000 yuan; if the amount is particularly huge or there are other particularly serious circumstances, The offender shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment, and a fine of not less than 50,000 yuan but not more than 500,000 yuan, or property confiscation.