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Bad check laws in New Mexico

New Mexico makes writing a check without sufficient funds a crime under the Worthless Check Act, NMSA 1978, Section 30-36-1 and following. The penalty tier depends on the amount of the check, with a felony level once a check reaches a threshold the statute sets. This guide covers what the law says, the possible penalties, how prosecutors prove intent, and where to find help if a bad check or a need for cash has you looking at loan options in New Mexico.

Reviewed by the BadCreditMD Editorial Team on . Last updated .

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How to read the numbers here

New Mexico's Worthless Check Act, NMSA 1978, Section 30-36-1 and following, sets felony and lesser penalties for checks written without sufficient funds, with the tier based on a threshold the statute sets. Installment loans are allowed under New Mexico law through the Small Loan Act and the Bank Installment Loan Act, as amended by 2022 HB 132 and 2017 HB 347, overseen by the New Mexico Regulation and Licensing Department, Financial Institutions Division. Payday and title loans are not allowed under New Mexico law under that same legislation. New Mexico Legal Aid, nonprofit credit counseling, your local community help line and the Consumer Financial Protection Bureau can also help.

What the Worthless Check Act covers

New Mexico's Worthless Check Act, NMSA 1978, Section 30-36-1 and following, makes it a crime to write a check knowing there are not enough funds in the account to cover it. The penalty section, NMSA 1978, Section 30-36-5, sets two tiers based on the amount of the check: a felony tier once the check reaches a threshold the statute sets, and a lower tier, treated as a petty misdemeanor, for smaller checks. The exact threshold and the fine amounts the statute allows appear in the Key facts section on this page rather than in this text.

Felony and misdemeanor penalties

Under NMSA 1978, Section 30-36-5, a worthless check that reaches the felony threshold the statute sets can lead to a term in a state penitentiary of one to three years, a fine the statute sets, or both. A check below that threshold but above a smaller amount the statute sets is treated as a lesser offense, punishable by up to thirty days in a county jail, a fine the statute sets, or both. The specific dollar thresholds and fine ceilings are shown in the Key facts section on this page, not repeated here.

How prosecutors prove intent to defraud

Writing a check is not automatically treated as a crime on its own. Under NMSA 1978, Section 30-36-7, proof that a check was dishonored and that the writer received notice of the dishonor can serve as prima facie evidence of intent to defraud. According to the New Mexico Supreme Court's commentary on the pattern jury instruction for this offense, Section 30-36-7 functions as a rule of evidence, and notice itself is not a required element that a prosecutor must prove in every case. If you receive a notice about a check, read it carefully and respond, since it can affect how a case against you is handled.

Loan options and the law in New Mexico

If a bad check came from trying to cover a short-term cash gap, it helps to know what New Mexico law allows for borrowing. Installment loans are allowed under New Mexico law, regulated under the Small Loan Act of 1955 and the Bank Installment Loan Act of 1959, as amended by 2022 HB 132 and 2017 HB 347, with oversight from the New Mexico Regulation and Licensing Department, Financial Institutions Division. Payday loans and title loans are not allowed under New Mexico law under the same 2017 and 2022 legislation. If you are considering an installment loan, the cost example on this page shows how the APR, term and payment amount work together so you can compare offers before you submit a request. BadCreditMD is not a lender or broker. A lending network partner shares requests with lenders. Lenders set their own rates and decide whether to lend.

Where to get help in New Mexico

If you have received a notice about a bad check or you are worried about covering one, several resources can help before the matter becomes a bigger problem. New Mexico Legal Aid can advise on your rights under the Worthless Check Act. The New Mexico Regulation and Licensing Department, Financial Institutions Division, oversees lenders in the state and can answer questions about loan products. The National Foundation for Credit Counseling's agency finder can connect you with nonprofit credit counseling to work out a budget or repayment plan. Your local community help line and the Consumer Financial Protection Bureau's complaint tool are also available if you believe a lender or collector treated you unfairly.

Key facts

  • Felony penaltyA worthless check of $25.00 or more is punishable by 1 to 3 years in the penitentiary, a fine of up to $1,000, or both, under NMSA 1978, Section 30-36-5.[1]
  • Felony threshold amountA worthless check of $25.00 or more is a felony, and smaller checks are petty offenses, according to the New Mexico Supreme Court's jury instruction commentary on the Worthless Check Act ($25).[2]
  • Misdemeanor penaltyA worthless check of more than $1.00 but less than $25.00 is punishable by up to 30 days in the county jail, a fine of up to $100, or both, under NMSA 1978, Section 30-36-5.[1]
  • Prosecution notice requirementIntent to defraud may be established prima facie by proof of dishonor and notice of dishonor under NMSA 1978, Section 30-36-7; that section is a rule of evidence, and notice is not an essential element of the offense.[2]
  • Statute citationWorthless Check Act, NMSA 1978, Section 30-36-1 and following (penalty in Section 30-36-5)[2]

Lending rules in New Mexico: New Mexico lending laws.

Related loan rules: Payday loans in New Mexico.

Common questions

Can I go to jail for a bad check in New Mexico

Yes, under NMSA 1978, Section 30-36-5, a worthless check at or above the felony threshold the statute sets can lead to time in a state penitentiary, while a smaller check can lead to a shorter term in a county jail. Whether a case leads to jail depends on the facts and how the prosecution proceeds.

Does the bank or payee have to notify me before charging me with a crime

Not necessarily. Under NMSA 1978, Section 30-36-7, notice of dishonor is one way to establish prima facie evidence of intent to defraud, but New Mexico's Supreme Court commentary explains that notice is not an essential element the prosecution must prove in every case.

Are payday loans allowed in New Mexico

No. Payday loans are not allowed under New Mexico law under 2017 N.M. HB 347 and 2022 N.M. HB 132. Installment loans remain allowed under New Mexico law through the Small Loan Act and the Bank Installment Loan Act, as amended.

What should I do if I wrote a check that bounced

Contact the payee as soon as possible to arrange payment, and read any notice you receive carefully since it relates to how intent is evaluated under New Mexico law. New Mexico Legal Aid and nonprofit credit counseling can help you understand your options and set up a plan.

Sources

  1. New Mexico Legislature. New Mexico House Bill 407 (2003, as introduced and not enacted), which quotes the operative text of NMSA 1978, Section 30-36-5, penalty, in its proposed amendment.
  2. Supreme Court of New Mexico. UJI 14-1670 NMRA, Fraud by worthless check; essential elements, with committee commentary (Supreme Court approved October 31, 2025).

Representative example

Amount borrowed
$1,000
Annual percentage rate (APR)
29.99%
Repayment
12 monthly payments
Payment
$97.48
Finance charge
$169.76
Total of payments
$1,169.76

Example: a $1,000 installment loan at 29.99% APR repaid in 12 monthly payments of $97.48 costs $1,169.76 in total, including a finance charge of $169.76. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.