Anyone know why writing a check for less than $1 is illegal?

Thought this was a little interesting and was curious if anyone had any info about why it would be illegal to write a check for less than $1.00.

§ 336. Issuance of circulating obligations of less than $1

Whoever makes, issues, circulates, or pays out any note, check, memorandum, token, or other obligation for a less sum than $1, intended to circulate as money or to be received or used in lieu of lawful money of the United States, shall be fined under this title or imprisoned not more than six months, or both.



Any ideas?

maybe the cost of processing a cheque is too costly for them to allow it.

Things like this law usually get put in place after an event that triggers it.
eg... somebody paid a fine in a #eload of one cent checks.

reply to post by ViperChili


I thought it was because being poor is illegal now? Isn't it?

I had no idea it was illegal, and it must not be enforced. I do the bills and taxes for the company I work for, and I have actually written checks, to the government for taxes, for $0.46 and $.05 (stupid I know) and nobody had come knocking on our door to arrest me.

Just another excuse for the gov't to tax you...

I think they wrote this because of Ms Swan: youtu.be...

lol x10

According to your text, using purchasing anything less than a dollar
With coins is illegal.

How many times have I broken the law buying gum...

"Numerous suggestions, of which that of Mr. E. M. Million, of Arlington, Va., is typical, recommend that this section be omitted as obsolete or revised to except commercial obligations. However, since the decisions make it plain that only obligations intended to circulate as money are within the provisions of this section and that commercial checks of less than $1 are not affected, there seems no reason so to rewrite the section."

§ 336. — Issuance of circulating obligations of less than $1. (law.justia.com)

Wouldn't apply to personal or commercial checks. (who hasn't gotten a refund check for some ridiculous amount like a few cents or so...?) I think this is intended for tokens and scrips used in place of money. Anyhow it was noted as obsolete, as the last time this was revised was back during WW2. I doubt anyone today would even bother enforcing this, just another old law waiting to be scrubbed from the books.

reply to post by ViperChili


I wouldn't put too much thought into it. This country is extremely corporatist. Most have laws have been written to benefit the few. Banks likely wrote this and had it passed so they could use the coercive arm of the state and not have to deal with such small checks on which they likely took losses. Without the law, the banks would be acting on the free market and would have to innovate and/or write their own stipulations regarding small checks since everything done on the market is by definition voluntary. Since the State is there to get in bed with, corporations find ways to legalize coercion.

reply to post by ViperChili


Thats interesting concidering that once a year I receive a "rebate" check from one of my creditors generally in the amount of a few cents. I never cash them simply out of spite.

I personally have in my possession a federally issued check (With the Statue of Liberty on it) in the amount of $0.19. I never cashed it since I found it amusing that the stamp costs more to mail it to me than the check was worth