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    Bouncing Checks Law: Batas Pambansa Bilang No. 22

    Uploaded by

    Chara etang

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    © All Rights Reserved
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    of 8

    10/12/2020

    BOUNCING CHECKS LAW


    Batas Pambansa Bilang No. 22

    ATTY.CYRUZ GENEREY G. ASIDOY, CPA, REB, REA

    Check
    A check is a bill of exchange issued by a drawer ordering a drawee bank
    to pay the payee named in the check a certain amount either payable to
    bearer or order. It is a substitute for money to pay an obligation
    incurred.

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    10/12/2020

    PAYEE

    DRAWEE

    DRAWER

    Bouncing check
    A check is considered a bouncing check when upon its presentment for
    payment, it is dishonoured for insufficiency of funds or when the
    account of the drawer is already closed.

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    Persons liable under B.P. 22


     1. Any person who makes or draws and issues any check to apply on
    account or for value, knowing at the time of issue that he does not have
    sufficient funds in or credit with the drawee bank for the payment of such
    check in full upon its presentment, which check is subsequently dishonored
    by the drawee bank for insufficiency of funds or credit or would have been
    dishonored for the same reason had not the drawer, without any valid reason,
    ordered the bank to stop payment; or

     2. Having sufficient funds in or credit with the drawee bank when he makes
    or draws and issues a check, shall fail to keep sufficient funds or to maintain a
    credit to cover the full amount of the check if presented within a period of 90
    days from the date appearing thereon, for which reason it is dishonored by
    the drawee bank (Sec.1).

    Requisites to be liable under BP 22 (par. 1)

     1. That a person makes or draws and issues any check;


     2. The check is drawn or issued to apply on account or for a valuable
    consideration;
     3. The person who makes or draws and issues the check knows at the time
    of issue that he does not have sufficient funds in or credit with the drawee
    bank for the payment of such check in full upon its presentment; and
     4. At the time, the check was presented for payment at due date, the same
    was dishonoured for insufficiency of funds or credit, or would have been
    dishonoured for the same reason had not the drawer, without any valid
    reason, ordered the bank to stop payment.

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    Requisites to be liable under BP 22 (par. 1)

     1. That a person has sufficient funds in or credit with the drawee bank
    when he makes or draws and issues a check;
     2. That he fails to keep sufficient funds or to maintain a credit to cover
    the full amount of the check if presented within a period of 90 days from
    the date appearing thereon; and
     3. That the check is dishonored by the drawee bank.

    EVIDENCE OF KNOWLEDGE OF INSUFFICIENT FUNDS

    Knowledge of insufficiency of funds or credit in the drawee bank for the


    payment of a check upon its presentment is an essential element of the
    offense. There is a prima facie presumption of the existence of this
    element from the fact of drawing, issuing or making a check, the
    payment of which was subsequently refused for insufficiency of funds

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    Notice of dishonor is an indispensable requisite for prosecution

    Sec. 3 of B.P. 22 requires that the holder of the check of the drawee
    bank, must notify the drawer of the check that the same was
    dishonored, if the same is presented within 90 days from the date of the
    issuance, and upon notice, the drawer has five days within which to
    make arrangements for the payment of the check or pay the same in
    full.

    Verbal notice of dishonour is NOT sufficient. The notice of dishonor must


    be in writing; a verbal notice is not enough. A mere oral notice or
    demand to pay would appear to be insufficient for conviction under the
    law

    Presumption of knowledge of the drawer of insufficiency of funds


    If the drawer receives the written notice of dishonor and still fails to
    make good the check within the given period, a presumption arises that
    at the time the drawer issued the check, he had knowledge that he does
    not have sufficient funds.

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    Dishonor of the check due to a stop payment order

    If the stop payment is reasonable and with a just cause, there can be no
    violation of B.P. 22. If it is unreasonable, there can be a violation of B.P.
    22.

    Prescriptive period for violation of B.P. 22

    Four years from the presentation for payment.

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    The word "credit" as used herein shall be construed to mean an


    arrangement or understanding with the bank for the payment of such
    check.

    Art. 315. Swindling (estafa). — Any person who shall defraud another
    by any of the means mentioned hereinbelow shall be punished by:
    Xxx
    2. By means of any of the following false pretenses or fraudulent acts
    executed prior to or simultaneously with the commission of the
    fraud: x x x
    (d) [By post-dating a check, or issuing a check in payment of an
    obligation when the offender therein were not sufficient to cover the
    amount of the check.
    The failure of the drawer of the check to deposit the amount necessary to
    cover his check within three (3) days from receipt of notice from the bank
    and/or the payee or holder that said check has been dishonored for lack
    of insufficiency of funds shall be prima facie evidence of deceit
    constituting false pretense or fraudulent act.

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    B.P. 22 vs Estafa
    B.P. 22 ESTAFA
    Malum prohibitum. Malum in se.
    Crime against public interest. Crime against property.
    Deceit not required. Deceit is an element.
    Punishes the making or drawing of any check that is The act constituting the offense is postdating or
    subsequently dishonoured, whether issued in issuing a check in payment of an obligation when
    payment of an obligation or to merely guarantee an the offender has no funds in the bank or his funds
    obligation. deposited therein were not sufficient to cover the
    Issuance of a check not the non-payment of amount of the check.
    obligation is punished.
    Violated if check is issued in payment of a pre- Not violated if check is issued in payment of a pre-
    existing obligation. existing obligation.
    Damage not required. There must be damage.
    Drawer is given 5 banking days to make Drawer is given 3 days to make arrangements of
    arrangements of payment after receipt of notice of payment after receipt of notice of dishonour.
    dishonour.

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