Understanding ARS 13-1807: Arizona’s Law on Issuing Bad Checks
Financial transactions are built on trust. When someone writes a check, the recipient expects it to be honored by the bank. However, if a check is returned due to insufficient funds, account closure, or other reasons, it can quickly escalate into a legal issue. In Arizona, this falls under ARS 13-1807 , the state statute that specifically addresses the unlawful act of issuing a bad check. What is ARS 13-1807? ARS 13-1807 makes it illegal to knowingly issue or pass a check when the person is aware that there are not enough funds in the account to cover the amount. This statute applies whether the act is intentional fraud or reckless behavior. The law is designed to protect businesses, individuals, and financial institutions from losses caused by dishonored checks. Key Provisions of the Statute The statute covers a variety of circumstances, including: Issuing a check with insufficient funds – Writing a check when you know your account balance cannot cover it. Closed accounts ...