§ Article 123a : Check, Draft, or Order Without Sufficient Funds

Article 123a of the UCMJ (10 U.S.C. § 923a) punishes making, drawing, uttering, or delivering a check, draft, or order for payment, knowing at the time that there are insufficient funds for its payment, done either to procure something of value with intent to defraud, or to pay a past-due obligation or for another purpose with intent to deceive.

Who It Applies To

Any person subject to the UCMJ who, for the procurement of any article or thing of value, makes, draws, utters, or delivers a check, draft, or order for payment of money, knowing at the time that there are or will be insufficient funds for its payment, with intent to defraud; or who does so for the payment of a past-due obligation or any other purpose, with intent to deceive.

What It Covers

For the procurement of any article or thing of value, with intent to defraud

1. The accused made, drew, uttered, or delivered a check, draft, or order for the payment of money payable to a named person or organization.
2. The accused did so to procure an article or thing of value.
3. The act was committed with intent to defraud.
4. At the time, the accused knew that the maker or drawer did not have, or would not have, sufficient funds in, or credit with, the bank or other depository for payment in full upon presentment.

For the payment of a past-due obligation, or for any other purpose, with intent to deceive

1. The accused made, drew, uttered, or delivered a check, draft, or order for the payment of money payable to a named person or organization.
2. The accused did so for the purpose, or purported purpose, of paying a past-due obligation, or for some other purpose.
3. The act was committed with intent to deceive.
4. At the time, the accused knew that the maker or drawer did not have, or would not have, sufficient funds in, or credit with, the bank or other depository for payment in full upon presentment.

Statutory rule of evidence

When payment of a check, draft, or order is refused by the drawee because of insufficient funds, the making, drawing, uttering, or delivering of it by the maker or drawer is prima facie evidence of intent to defraud or deceive, and of knowledge of insufficient funds or credit — unless the maker or drawer pays the holder the amount due within five days after receiving notice, orally or in writing, that it was not paid on presentment. Under the Manual, if no notice is given, or the amount is paid within five days of notice, the prosecution may not rely on this rule, but a conviction is still possible if every element is otherwise proved.

Key rules

• The article covers any check, draft (including share drafts), or order for the payment of money drawn on any bank or other depository, whether or not the bank actually exists.
• A person who utters or delivers an instrument they know is worthless may violate the article without being its maker.
• For the procurement, nothing of value need actually be obtained. A postdated check given as a future installment payment can be covered if the required intent and knowledge exist.
• Credit means an arrangement or understanding, express or implied, with the bank for payment of the instrument; writing a check on a nonexistent bank, or a bank where the accused has no account, involves an absence of credit.
• The required intent and knowledge must exist when the instrument is made, drawn, uttered, or delivered. If they can otherwise be shown, proof of presentment or refusal is not necessary.

Maximum Punishment

Maximum authorized punishment.

• To procure an article or thing of value, with intent to defraud, face amount $1,000 or less: bad-conduct discharge, forfeiture of all pay and allowances, and confinement for 6 months.
• The same, face amount more than $1,000: dishonorable discharge, forfeiture of all pay and allowances, and confinement for 5 years.
• For a past-due obligation or any other purpose, with intent to deceive: bad-conduct discharge, forfeiture of all pay and allowances, and confinement for 6 months.

Sentencing parameters. With intent to defraud, $1,000 or less, Category 1 (0–12 months), with a recommended maximum of 6 months. With intent to defraud, more than $1,000, Category 2 (1–36 months). With intent to deceive, Category 1 (0–12 months), with a recommended maximum of 6 months.

The newer sentencing rules apply, subject to the capital-case rules, when the accused is convicted only of offenses committed after 27 December 2023. See How UCMJ Sentencing Rules Apply. The maximum authorized punishment and the applicable sentencing framework do not predict the sentence in a particular case.

Related and Distinguished

Article 123a addresses genuine checks drawn with knowledge of insufficient funds. Signing another person’s name, or otherwise falsely making a check, is forgery under Article 105. Fraudulent use of a credit card, debit card, or other access device is addressed by Article 121a, and dishonorably failing to maintain funds or to pay a debt by separate Article 134 offenses, including the worthless check offense.

What the Provision Does

Article 123a covers checks, drafts, and orders made or delivered with knowledge that funds are insufficient. It separates doing so to procure something of value with intent to defraud from doing so for another purpose, such as paying a past-due obligation, with intent to deceive. The maximum confinement is 6 months, or 5 years for the intent-to-defraud form above $1,000.

History

Article 123a was added to the UCMJ by Pub. L. 87-385 (enacted October 4, 1961) and took effect on March 1, 1962, the first day of the fifth month after enactment.

Sources

• 10 U.S.C. § 923a (Article 123a, UCMJ)
• Manual for Courts-Martial, United States, 2024 edition, Part IV, ¶ 70
• Manual for Courts-Martial, United States (2024 ed.), Appendix 12B and Appendix 12C