What is a bad check

[qcspeck]

What is the name of your state?Tennesseeundefined
A mortgage broker I was working with to purchase a home, gave me a 1500.00 loan to get a certificate of deposit from my bank and to take out a loan on the CD and then the bank would report my payment to the credit reporting agencies and they would raise my credit score. In return I gave the broker a 1500.00 check to hold as collateral until I paid off the 1500.00 loan. Our agreement was that the check would not be deposit it would be return to me after the loan was paid off.Well I found out that this guy was a predatory broker and that he have committed a number of financial wrong doing in the pass,he also have been incarcerated in the pass because of his wrong doing.I went to another broker after I found out that this guy was fire from the mortgage company because of his excessive fee while we was working on this deal.I then purchase a home from a legit broker. When I call the former broker to inform him that I have purchase a new home and to make payment arrangement on the loan he got piss at me and went to my bank to deposit the check that I gave to him as collateral, even after I inform him that I didnt have the funds in the account to pay the check, also the check was over three month old. Well he sent me a certified letter demanding payment in ten days, when I could not pay him. he file a bad check charge against me and I was arrested for the first time in my Life and incarcerated for three days. My question is Can a check be used as collateral?Also is this really consider a bad check rap even after I tried to make payment arrangement on this check? Thank Terry

 

[JETX]

"Can a check be used as collateral?"
*** Yes.

"Also is this really consider a bad check rap even after I tried to make payment arrangement on this check?"
*** Probably not.
Tennessee code:
"39-14-121. Worthless checks.
(a) A person commits an offense who, with fraudulent intent or knowingly:
(1) Issues or passes a check or similar sight order for the payment of money for the purpose of paying any fee, fine, tax, license or obligation to any governmental entity or for the purpose of obtaining money, services, labor, credit or any article of value, knowing at the time there are not sufficient funds in or on deposit with the bank or other drawee for the payment in full of the check or order, as well as all other checks or orders outstanding at the time of issuance; or
(2) Stops payment on a check or similar sight order for the payment of money for the purpose of paying any fine, fee, tax, license or obligation to any governmental entity or for the purpose of obtaining money, services, labor, credit or any article of value; provided, that such money, credit, goods or services were as represented at the time of the issuance of the check or similar sight order.
(3) This subsection (a) shall not apply to a post-dated check or to a check or similar sight order where the payee or holder knows or has good and sufficient reason to believe the drawer did not have sufficient funds on deposit to the drawer's credit with the drawee to ensure payment.

(b) For purposes of this section, the issuer's or passer's fraudulent intent or knowledge or both of insufficient funds may be inferred if:
(1) The person had no account with the bank or other drawee at the time the person issued or passed the check or similar sight order; or
(2) On presentation within thirty (30) days after issuing or passing the check or similar sight order, payment was refused by the bank or other drawee for lack of funds, insufficient funds or account closed after issuing or passing the check or order, and the issuer or passer fails to make good within ten (10) days after receiving notice of that refusal."
Source: http://198.187.128.12/tennessee/lpext.dll/Infobase/18d75?fn=document-frame.htm&f=templates&2.0

In any event, you are going to need to talk with a local attorney about how to respond to these charges.... and to make sure that your rights are protected.

Also, the information at the following website could be helpful:
http://www.attorneygeneral.org/gencheck.html#c1