Bouncing Checks Law: Batas Pambansa Bilang No. 22

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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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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10/12/2020

BOUNCING CHECKS LAW

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

Persons liable under B.P. 22

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

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

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

EVIDENCE OF KNOWLEDGE OF INSUFFICIENT FUNDS

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

Notice of dishonor is an indispensable requisite for prosecution

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

Presumption of knowledge of the drawer of insufficiency of funds

Dishonor of the check due to a stop payment order

Prescriptive period for violation of B.P. 22

Four years from the presentation for payment.

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

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