Why do we bifurcate Exception into Checked & Unchecked?

Exception is declared as checked exception. its subclasses includes checked as well as unchecked. but if i am gonna declare a userdefine exception by extending Excetion class, its behavin as checked bydefault....what is the feature which deferentiates between checked and unchecked??
how does JVM knows that its a checked or unchecked??
what is the basis for using checked and unchecked excetions??

http://java.sun.com/docs/books/jls/second_edition/html/exceptions.doc.html
JLS says it all pretty well.

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