Bad paper
a less-than-honorable discharge from military service.
Historical Examples
Learn how to make that infernal note-book perfectly all right in spite of the bad paper.
Rough-Hewn Dorothy Canfield
One of these is the prevalence of bad paper, overladen with clay and with Modern methods.
Encyclopaedia Britannica, 11th Edition, Volume 4, Slice 2 Various
noun phrase
Worthless or counterfeit money, checks, etc: They passed some bad paper (1940s+)
less-than-honorable discharge from military service (1970s+ fr Vietnam veterans)
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