011 Bouncing Checks Law

- Fine of not less than but more than DOUBLE the amount of the check which
BOUNCING CHECK LAW fine shall in no case exceed TWO HUNDRED THOUSAND PESOS ( PHP
200,000.00), or both such fine and imprisonment at the discretion of the
court.
A. THE ANTI-BOUNCING CHECK LAW
1. Denomination of the law and date of approval D. OTHER PROVISIONS
- Referred to as Batas Pambansa bilang 22, it was approved on April 3, 1979 1. Liability in case the bouncing check was drawn by a Juridical Person
Where the check is drawn by a corporation, company, or entity, the person
2. Purpose of the law or persons who ACTUALLY SIGNED the check in behalf of such drawer
- To preserve the integrity of checks as substitutes for money by declaring shall be liable. (Sec. 1)
the act of issuing bouncing check as a crime
2. Evidence of knowledge of insufficient funds
B. ACTS PUNISHABLE AS A CRIME IN RELATION TO BOUNCING CHECKS The making, drawing, and issuance of a check payment of which is refused
CRIME OF COMMISSION CRIME OF OMISSION by the drawee because of insufficient funds in or credit with such bank,
when presented within ninety (90) days from the date of the check, shall be
Elements PRIMA FACIE EVIDENCE of knowledge of such insufficiency of funds or
credit unless such maker or drawer pays the holder thereof the amount
1. A person makes or draws and 1. A person makes or draws and due thereon, or makes arrangements or payment in full by the drawee of
issues a check to apply on account issues a check; such check WITHIN FIVE (5) BANKING DAYS AFTER RECEIVING
or for value NOTICE that such check has not been paid by the drawee. (Sec. 2)
2. That at the time he issued the 2. That at the time he issued the 3. Duty of the Drawee-Bank if it dishonors payment of a check
check, he knew that he does not check, he had sufficient funds or It shall be the duty pf the drawee of any check, when refusing to pay the
have sufficient funds in or credit credit with the drawee bank; same to the holder thereof upon presentment, to cause to be written,
with the drawee bank for the printed, or stamped in plain language thereon, or attached thereto, the
payment of such check in full upon reason for drawee’s dishonor or refusal to pay the same: PROVIDED, that
its presentment; and where there are no sufficient funds in or credit with such drawee bank,
such fact shall always be explicitly stated in the notice of dishonor or
3. The check was subsequently 3. That he however failed to refusal... (Sec. 3)
dishonored for the same reason subsequently keep sufficient funds 4. Evidentiary significance of the bank’s stamp of dishonor
had not the drawer, without any or to maintain a credit to cover the … In all prosecutions under this Act, the introduction in evidence of any
valid reason, ordered the bank to full amount of the check; and unpaid and dishonored check, having the drawee’s refusal to pay stamped
stop payment. or written thereon, or attached thereto, with the reason therefore as
aforesaid, shall be prima facie evidence of the making or issuance of said
4. That the said check was presented check, and the due presentment to the drawee for payment and the
for payment within a period of dishonor thereof, and that the same was properly dishonored for the
ninety (90) days from the date reason written, stamped, or attached by the drawee on such dishonored
appearing thereon; check. (Sec. 3)
5. That the check was dishonored by 5. Effect of stop order payment where the funds are insufficient
the drawee bank as a result. Notwithstanding receipt of an order to stop payment, the drawee shall state
in the notice that there were no sufficient funds in or credit with such bank
for the payment in full of such check, if such be the fact. (Sec. 3)
C. EXTENT OF LIABILITY OF THE VIOLATOR
- Imprisonment of not less than thirty (30) days but not more than one (1) year
6. Meaning of the word “Credit”
The word “credit” as used herein shall be construed to mean an
arrangement or understanding with the bank for the payment of such
check (Sec. 4)
7. Violator charged with a crime under B.P. blg. 22 can still be charged with
ESTAFA under the Revised Penal Code
Prosecution under this Act shall be without prejudice to any liability for
violation of any provision of the Revised Penal Code. (Sec. 5)
E. ESTAFA AS AN ADDITIONAL CRIME TO B. P. blg. 22

1. The law that penalized Estafa as a crime
- Referred to as Act No. 3815 and called “The Revised Penal Code”, this law
became effective January 1, 1932. It penalized crimes in general, such as
crimes against persons (Robbery and Theft), against honor (Libel and
Slander), and chastity (Adultery and Rape).
2. Elements of Estafa in postdating or issuing a check
a. That the accused postdated a check or issued a check in payment of an
obligation;
b. That such postdating or issuing a check was done at the time the accused
has no funds in the bank, or his funds deposited therein were not
sufficient to cover the amount of the check; and
c. That the check was subsequently dishonored by its drawee bank for
insufficiency of funds
3. Evidence of deceit in this form of Estafa
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 or insufficiency of funds shall be PRIMA FACIE
EVIDCENCE OF DECEIT CONSTITUTING FALSE PRETENSE, OR
FRAUDULENT ACT. (Art. 315 (d), RPC)

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- Fine of not less than but more than DOUBLE the amount of the check which

E. ESTAFA AS AN ADDITIONAL CRIME TO B. P. blg. 22

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