BATAS PAMBANSA BLG. 22
AN ACT PENALIZING THE MAKING OR DRAWING AND ISSUANCE OF A CHECK WITHOUT SUFFICIENT FUNDS OR CREDIT AND FOR OTHER PURPOSES.
Section 1. Checks without sufficient funds. - 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, shall be punished by imprisonment of not less than thirty days but not more than one (1) year or by a fine of not less than but not more than double the amount of the check which fine shall in no case exceed Two Hundred Thousand Pesos, or both such fine and imprisonment at the...
Details
Amends
n/a
Amended by
n/a
Batas Pambansa
BOUNCING CHECKS LAW
Batas Pambansa Blg. 22
Summary of Batas Pambansa Blg. 22
Penalties for Issuing Checks Without Sufficient Funds or Credit
- Any person who issues a check without sufficient funds or credit shall be punished by:
• Imprisonment of not less than 30 days but not more than 1 year, or
• Fine of not less than the amount of the check but not more than double the amount, not exceeding ₱200,000, or
• Both imprisonment and fine (Section 1)
- The same penalty applies if the drawer had sufficient funds initially but failed to maintain funds to cover the check within 90 days from the date on the check (Section 1)
Evidence of Knowledge of Insufficient Funds
• Dishonor of a check within 90 days from its date is prima facie evidence of knowledge of insufficient funds, unless the drawer pays or makes arrangements for payment within 5 banking days after receiving notice of dishonor (Section 2)
Duties of the Drawee Bank
• The drawee bank must explicitly state "insufficient funds" as the reason for dishonor (Section 3)
• A dishonored check with the reason stamped by the drawee bank is prima facie evidence of issuance, presentment, dishonor, and proper dishonor reason (Section 3)
• Even with a stop payment order, the drawee must state "insufficient funds" if applicable (Section 3)
Definition of "Credit"
• "Credit" means an arrangement or understanding with the bank for payment of the check (Section 4)
Relation to Revised Penal Code
• Prosecution under this Act is without prejudice to liability under the Revised Penal Code (Section 5)
Separability Clause and Effectivity
• If any provision is declared unconstitutional, the remaining provisions shall remain in force (Section 6)
• The Act took effect 15 days after publication in the Official Gazette (Section 7)
Penalties for Issuing Checks Without Sufficient Funds or Credit
- Any person who issues a check without sufficient funds or credit shall be punished by:
• Imprisonment of not less than 30 days but not more than 1 year, or
• Fine of not less than the amount of the check but not more than double the amount, not exceeding ₱200,000, or
• Both imprisonment and fine (Section 1)
- The same penalty applies if the drawer had sufficient funds initially but failed to maintain funds to cover the check within 90 days from the date on the check (Section 1)
Evidence of Knowledge of Insufficient Funds
• Dishonor of a check within 90 days from its date is prima facie evidence of knowledge of insufficient funds, unless the drawer pays or makes arrangements for payment within 5 banking days after receiving notice of dishonor (Section 2)
Duties of the Drawee Bank
• The drawee bank must explicitly state "insufficient funds" as the reason for dishonor (Section 3)
• A dishonored check with the reason stamped by the drawee bank is prima facie evidence of issuance, presentment, dishonor, and proper dishonor reason (Section 3)
• Even with a stop payment order, the drawee must state "insufficient funds" if applicable (Section 3)
Definition of "Credit"
• "Credit" means an arrangement or understanding with the bank for payment of the check (Section 4)
Relation to Revised Penal Code
• Prosecution under this Act is without prejudice to liability under the Revised Penal Code (Section 5)
Separability Clause and Effectivity
• If any provision is declared unconstitutional, the remaining provisions shall remain in force (Section 6)
• The Act took effect 15 days after publication in the Official Gazette (Section 7)