2.0 Bouncing Checks
Bank that cashes in- drawee
Person issuing the check- drawer
Person receiving the payment- payee
2.1 Requisites to be liable under BP 22
ELEMENTS OF VIOLATION
1. The making, drawing, and issuance of any check to apply for account or for value;
2. The knowledge of the maker, drawer, or issuer that at the time of issue he does not have
sufficient funds in or credit with the drawee bank for the payment of the check in full upon its
presentment; and
3. The subsequent dishonor of the check OR would have been dishonored for the same reason had
not the drawer, without any valid cause, ordered the bank to stop payment.
Section 1. Checks without sufficient funds.
Batas Pambansa Blg 22
Checks without sufficient funds
Person who makes or draws a check knowing that they do not have sufficient funds in the drawee
bank; check is dishonored because the drawer did not order to stop the payment
Person does not keep sufficient funds or credit to cover the full amount within 90 days of the date on
the check
Imprisonment: 30 days to 1 year; and/or
Fine: amount of check up to twice the amount of the check, not more than 200,000
For corporations: person who signed the check will be liable
Prescription period: 4 years from commission or discovery of the offense
Section 2. Evidence of knowledge of insufficient funds
When check is refused by the drawee bank because of insufficient funds or credit, presented within
90 days from the date on the check is prima facie (at first sight or impression) knowledge of
insufficiency
UNLESS
Drawer pays the amount due, or
Makes arrangements for payment in full within 5 banking days after notice that the check was not
paid by drawee (the check bounced)
Section 3. Duty of drawee, rules of evidence
If drawee refuses to pay,
Reason must be written, printed, or stamped in plain language thereon, or attached thereto
Section 4. Credit construed
Credit = an arrangement or understanding with the bank for the payment of the check
Section 5. Liability under the Revised Penal Code
Without prejudice to any liability for violation of the Revised Penal Code
Section 6. Separability clause
If any provision in this Act is unconstitutional, the remaining provisions will remain in force
Section 7. Effectivity
15 days from publication in the Official Gazette
Evidence for violation of BP 22



To provide violation of BP 22 or for conviction of crime of BP 22
– Proof beyond reasonable doubt.
To prove civil damages on civil action involving BP 22
– Preponderance of evidence.
To sue or to file a case for violation of BP 22
– Probable cause or Prima Facie evidence.
2.2 Compare bouncing checks with Estafa (Art 315)
An act of estafa may also violate BP 22 at the same time
Good faith (informed the drawer
that they cannot deposit funds)
Payment of a pre-existing
obligation
Mere issuance of a worthless
check
Period to make good
ESTAFA
A defense in estafa
BP 22
NOT a defense
If in payment of a pre-existing
obligation, no estafa
May be held liable
May still be held liable
3 days
Fraudulent
Insufficiency of funds to cover
the check
Accused both drew AND issued
the check to be liable
5 banking days
No fraud/deceit
Insufficiency of funds and
subsequent dishonor