RFBT3 – REVIEWER
BATAS PAMBANSA 22, BOUNCING CHECKS LAW
APRIL 03, 1979
Checks:
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Negotiable Instrument
Bill of Payment
Drawer, Drawee, and Payee
o Drawer – Person who makes,
draws, or issues the check.
o Drawee – Person who pays the
check.
o Payee - Person who receives the
payment after presentment or to
whom the check is named after.
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OBJECTIVE 1:
REQUISITES TO BE LIABLE UNDER BP. 22:
1.
The making, drawing, and issuance of a
check to apply for account or for value.
2. Knowledge of the maker, drawer, and
issuer that at the time of issue he does not
have sufficient funds in or credit with the
drawee bank for the payment of check in
full upon its presentment.
3. The subsequent dishonor of the check 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 cause,
ordered the bank to stop payment.
OBJECTIVE 2:
CHECKS WITHOUT SUFFICIENT* FUNDS:
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Checks made, drawn, and issued without
sufficient funds in or credit that causes it
to bounce.
Any person who makes, draws, or issues
checks without sufficient funds can be
liable for:
o Imprisonment for not less than
3o days and not more than 1 year
o A fine of not less than but not
more than double the amount of
the check which fine shall not
exceed 200,000 PHP.
o Both Imprisonment and Fine at
the discretion of the courts.
Any person who has sufficient funds in or
credit with the drawee bank but fails 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, which causes the dishonoring of
the check is also liable for the same
penalties.
Where the check is drawn by a
corporation, company or entity, the
person or persons who actually signed
the check in behalf of such drawer shall
be liable under this Act.
OBJECTIVE 3:
EVIDENCE OF KNOWLEDGE OF SUFFICIENT
FUNDS:
1.
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The drawer is presented a notice that
the check was dishonored 90 days
from the date of the check.
2. The drawer, after 5 days of the
receipt of notice, fails to pay the
holder of the check.
*Both elements should be present to
constitute
knowledge
of
the
insufficiency.
It is the hardest evidence to prove in BP.
22 cases because it is a state of mind.
OBJECTIVE 4:
DUTY OF THE DRAWEE*:
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It shall be the duty of the drawee of any
check , when refusing to pay the check to
the payee upon presentment, to produce
a written, printed, or stamped in plain
language thereon, or attached thereto,
the reason for drawee’s dishonor or
refusal to pay.
RFBT3 – REVIEWER
BATAS PAMBANSA 22, BOUNCING CHECKS LAW
APRIL 03, 1979
OBJECTIVE 5:
CREDIT CONSTRUED:
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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.
ESTAFA:
•
Criminal offense in the Philippines that
involves fraud or deceit to obtain money,
property, or other benefits at the expense
of another person.
OBJECTIVE 6:
BP. 22 VS ESTAFA:
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Good faith is a defense in Estafa.
o BP. 22 does not accept the intent
of the accused in making
judgments. Mere act and
knowledge is enough to hold one
liable.
Payment of a Pre-Existing Obligation
o If the check is in payment of preexisting obligation, there is no
deceit, hence Estafa cannot exist.
Issuance of a Worthless Check
o Estafa may be committed by
mere issuance of the check while
BP. 22 provides that the accused
must draw and issue the check.
▪ Issuance – Handing the
check over
▪ Drawing – Writing and
signing the check
Period to pay the check (Escape Clause)
o Estafa provides 3 days while BP.
22 provides 5 banking days.
Both Estafa and BP. 22 have Civil and
Criminal Aspects
o In Estafa, the criminal aspect is
the deceit to incur benefits at the
expense of another the civil
aspect may be the damages from
the act.
o
In BP.22 the criminal aspect is
the drawing and issuance of a
check with insufficient funds
while the civil aspect may be
from non-fulfillment of preexisting obligation.
▪ The law provides that a
person cannot file a civil
case and a criminal case
for bouncing checks at
the same time as it
provides that the civil
punishment is already
under the criminal case.
▪ It is highly advised by
law that one should file a
civil case first for the
non-fulfillment of the
obligation
before
proceeding with the
criminal case under BP.
22.