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    Law On Bouncing Checks: Batas Pambansa Blg.22 (1979)

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    Jm Santos
    The document discusses bounced checks and the law on bounced checks in the Philippines (Batas Pambansa Blg. 22). It defines what constitutes a bounced check and explains that issuing bounced checks undermines the financial system and economy. The law makes issuing bounced checks a criminal offense punishable by imprisonment or fines or both. It outlines the requirements for prosecution under the law, possible defenses, and clarifies that imprisonment would not be for non-payment of debt alone.

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    Law On Bouncing Checks: Batas Pambansa Blg.22 (1979)

    Uploaded by

    Jm Santos
    46 views6 pages
    The document discusses bounced checks and the law on bounced checks in the Philippines (Batas Pambansa Blg. 22). It defines what constitutes a bounced check and explains that issuing bounced checks undermines the financial system and economy. The law makes issuing bounced checks a criminal offense punishable by imprisonment or fines or both. It outlines the requirements for prosecution under the law, possible defenses, and clarifies that imprisonment would not be for non-payment of debt alone.

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    Bouncing Checks Slides

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    The document discusses bounced checks and the law on bounced checks in the Philippines (Batas Pambansa Blg. 22). It defines what constitutes a bounced check and explains that issuing bounced checks undermines the financial system and economy. The law makes issuing bounced checks a criminal offense punishable by imprisonment or fines or both. It outlines the requirements for prosecution under the law, possible defenses, and clarifies that imprisonment would not be for non-payment of debt alone.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    46 views6 pages

    Law On Bouncing Checks: Batas Pambansa Blg.22 (1979)

    Uploaded by

    Jm Santos
    The document discusses bounced checks and the law on bounced checks in the Philippines (Batas Pambansa Blg. 22). It defines what constitutes a bounced check and explains that issuing bounced checks undermines the financial system and economy. The law makes issuing bounced checks a criminal offense punishable by imprisonment or fines or both. It outlines the requirements for prosecution under the law, possible defenses, and clarifies that imprisonment would not be for non-payment of debt alone.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 6

    LAW ON BOUNCING CHECKS

    Batas Pambansa Blg.22 (1979)

    Atty. Manuel R. del Rosario


    WHAT IS A BOUNCED CHECK
    AND WHY IS IT PUNISHED?
    When a check is presented for payment to a bank and it is
    dishonored it is known to have bounced (tumalbog).

    Checks are an important part of our financial system and


    economy. So if a worthless check is passed around it
    undermines the strength of the monetary system and will
    restrict the speed and flow of business transaction.

    Issuing a bounced check is a criminal offense with possible


    imprisonment (not less than 30 days but not more than 1
    year) or a fine (not more than double the amount of the
    check but not to exceed P200,000) or both fine and
    imprisonment
    WHAT IS A BOUNCED CHECK
    AND WHY IS IT PUNISHED?
    Any person, natural or juridical, who draws and issues any
    check on account or for value knowing that he does not have
    sufficient funds and which check upon presentment is
    dishonored is liable.

    How Committed?
    - Drawn Against Insufficient Funds (DAIF)
    - Drawn Against Uncollected Deposit (DAUD)
    - Account Closed
    - Drawer issued a “Stop Payment” Order without valid reason
    WHAT ARE THE REQUIREMENTS
    FOR PROSECUTION UNDER BP 22?

    1. The check must be issued for value;


    2. The check must be presented to the bank within 90 days
    from the date of the check;
    3. The check was dishonored by the bank for the reasons
    previously listed;
    4. The drawer must be notified in writing of the dishonor by
    the bank and he is given a period of 5 banking days after
    receiving the written notice to make arrangements for full
    payment.

    If the bounced check was issued by a corporation – the


    officers who signed the check are liable
    POSSIBLE DEFENSES TO A CRIMINAL
    COMPLAINT FOR VIOLATION OF BP22

    1. Failure to send a written notice to the drawer after the


    dishonor of the check by the bank;
    2. Payment was made within 5 banking days after drawer
    was informed of the dishonor of the check by the bank;
    3. Check was presented to the bank more than 90 days after
    it was issued;
    4. Stop payment order was valid. For example goods the
    check was to pay for were not delivered;
    5. Check was not issued for value. For example, I gave you a
    check for P100,000 only so you can show proof that you
    have funds for a certain transaction.
    PROSECUTION UNDER BP 22 =
    IMPRISONMENT FOR NON-PAYMENT OF DEBT?
    No one will be imprisoned for non-payment of a debt. But in most cases a
    post-dated check is used as security in order to get a loan.

    Jeremiah borrows P50,000 from Chris on August 10, 2020. He issues a


    check for P55,000 payable to Chris with date of December 10, 2020. When
    Chris presented the check for payment it was dishonored for lack of
    sufficient funds. Chris wrote Jeremiah a demand letter but the P55,000
    remained unpaid.

    If Chris prosecutes Jeremiah for violation of BP 22 and Jeremiah is found


    guilty and sentenced to 3 months imprisonment are we not imprisoning
    Jeremiah for non-payment of his debt to Chris?

    PARTLY TRUE, that is why the Supreme Court prefers that violators be
    fined only and not given prison time.

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