Bouncing Checks Law
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AboutBouncing Checks Law
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Aboutstate of mind or criminal intent is unnecessary, you’ll be liable
Bouncing Checks Law (BP 22) upon issuance of unfunded checks
2.1 Requisites to be liable under BP 22
(1) making, drawing, and issuance of any check to apply on account or for value;
(2) knowledge of the maker, drawer, or issuer that at the time of issue he does not have sufficient funds
(3) subsequent dishonor of the check by the drawee bank for insufficiency of funds or credit, or dishonor for the
same reason had not the drawer, without any valid cause, ordered the bank to stop payment
2.1.1 Checks without insufficient funds Prescriptive period - 4 years from the commission of the offense or discovery
Imprisonment - not less than 30 days but not more than 1 year
both, at the discretion of the court
Fine - not less than but not more than double the amount of the check
not to exceed P200,000
Valid defense - payment within 5 banking days or
2.1.2 Evidence of knowledge of insufficient funds arrangements for full payment after receiving such notice
when presented within 90 days - prima facie evidence of knowledge of such insufficiency of funds or credit
from the date of check
Presentment for Payment staled check.
with presumption of knowledge automatically dishonored with or
(no funds upon presentment)
without funds
≤90 days >90 days, <180 days >180 days
upon issuance:
with funds
without funds;
with knowledge of
insufficient funds no presumption of knowledge after 90 days
or credit so need i-prove to be liable
2.1.3 Duty of Drawee rules of evidence
when refusing to pay the same to the holder upon presentment, to cause to be written, printed, or stamped
in plain language thereon, or attached thereto, the reason for drawee's dishonor or refusal to pay
“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 refusal”
In all prosecutions under BP22, the introduction in evidence of any unpaid and dishonored check, having the drawee's refusal to
pay stamped or written thereon or attached thereto, with the reason therefor as aforesaid, shall be prima facie evidence of
a. the making or issuance of said check
b. the due presentment to the drawee for payment
c. the dishonor thereof, and
d. the same was properly dishonored for the reason written, stamped or attached by the drawee on such dishonored check.
2.1.4 Credit Construed
interpret
shall be construed to mean an arrangement or understanding with the bank for the payment of such check.
innocence/not guilty
Effect of Acquittal on Civil Liability
An acquittal does not entail the extinguishment of the civil liability for the dishonored checks.
An acquittal bound on lack of proof beyond reasonable doubt does not preclude the award of civil damages.
2.2 Comparison with Estafa (Art. 315 {2] (d) defrauding someone
the act is inherently wrong/evil
prohibited because the law says so BP22 Estafa
nature of Crime Mala Prohibita Mala in Se
type of Crime against public interest against property estafa may
be committed
presence of deceit/fraud not required required by merely
issuing a
worthless
presence of damage not required required check
by informing
worthless check mandatory not required
the payee,
there is no
good faith, as defense not applicable applicable deceit
notice of dishonor required not required
execution on account / for value for value
I
applicable penal law special penal law revised penal code
period to make good check 5 banking days 3 days
-with pre-existing obligation -no pre-existing obligation
-check issuance after the obligation -check issuance and obligation