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Bouncing Check

A check is a bill of exchange drawn on a bank payable on demand. Key characteristics include it being drawn on a bank, always payable on demand, and there is an assumption the drawer has an account. Crimes involving checks include bouncing checks, which involves knowingly writing a check when lacking sufficient funds, and check fraud, which involves postdating a check with intent to defraud. Check fraud aims to prove the defendant intended to defraud when writing the check, and can be shown through direct evidence, circumstantial evidence, or statutory presumptions. Penalties for check fraud include civil and criminal fines, restitution, probation, and possible short-term imprisonment.

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253 views

Bouncing Check

A check is a bill of exchange drawn on a bank payable on demand. Key characteristics include it being drawn on a bank, always payable on demand, and there is an assumption the drawer has an account. Crimes involving checks include bouncing checks, which involves knowingly writing a check when lacking sufficient funds, and check fraud, which involves postdating a check with intent to defraud. Check fraud aims to prove the defendant intended to defraud when writing the check, and can be shown through direct evidence, circumstantial evidence, or statutory presumptions. Penalties for check fraud include civil and criminal fines, restitution, probation, and possible short-term imprisonment.

Uploaded by

ginalyn
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Check

A check is a bill of exchange drawn on a bank payable on demand . Except as herein


otherwise provided, the provisions of this Act applicable to a bill of exchange payable on
demand apply to a check.

Peculiarities about a Check:


1. It is a special kind of bill of exchange where Drawee is always a Bank;
2. It is always payable on demand;
3. There is a presumption that the drawer has an account with the bank;
4. Must be presented within a reasonable time (6 months) after issue; and
5. The death of the drawer, if known to the bank, is a valid ground to dishonor the same.

Principles underlying a check:


1. A check of itself does not operate as an assignment of the funds of the drawer in the
hands of the bank and the bank is not liable until he accepts or certifies the check;
2. A check must be presented for payment within the reasonable time after its issue
otherwise the drawer will be discharged from liability thereon to the extent of loss caused
by the delay; and
3. A check not presented within the reasonable time after its issue is stale check.

Crimes Involving Checks

1. Bouncing Checks Law


Elements of Bouncing Checks Law Violations
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 payment of the check in full upon its
presentment; and
3. (a) The subsequent dishonor of the check by the drawee bank for insufficiency of funds
or credit, or (b) would have been dishonored for the same reason had not the drawer,
without any valid cause, ordered the bank to stop payment.

Knowledge : The making, drawing and issuance of a check payment of which is refused by the
drawee because of insufficient funds in or credit with such bank, when presented within ninety
(90) days from the date of the check, shall be prima facie evidence of knowledge of such
insufficiency of funds and credit.

Penalty:
1. Imprisonment - not less than 30 days but not more than 1 year
2. Fine - not less than but not more than double the amount of check, which fine shall not
exceed the amount of Php 200,000; or
3. Both, at the discretion of the court.

Prescriptive period: BP 22 prescribes in four (4) years from the commission of the offense or, if
the same be not known at the time, from discovery , thereof.

2. Check Fraud
Sometimes a person puts a date on a check that is after the date on which they are
writing the check. They may innocently expect that the recipient of the check will not
cash the check until a later date if payment is not due until then. If monthly payments for
rent or utilities are billed on a certain date each month, this may be a reasonable
expectation. Or a consumer may have reached an agreement with a vendor that
payment will be postponed until a certain date, when they will have sufficient funds in
their account to cover the amount of the check. There is nothing illegal about these
arrangements. On the other hand, check fraud can occur when someone postdates a
check with the intent to defraud someone else of goods or services.

If a postdated check bounces at the future date agreed by the parties, this may suggest
that the person who wrote the check had the intent to defraud the other party. However,
the defendant must have had the intent to defraud when they wrote the check. The
prosecution cannot get a conviction if the check bounced because an unexpected event
prevented the defendant from putting funds into the account as planned. This is
because they intended to make the payment as required when they wrote the check.

Proving Intent in Check Fraud Cases


Often, a prosecutor will have direct evidence showing the defendant’s intent. Perhaps
the defendant told someone else about their plan to defraud the victim, and that person
can testify as a witness at trial. If no direct evidence is available, the prosecutor will
need to resort to circumstantial evidence. The laws in many states provide a
presumption of intent if the prosecutor can satisfy certain conditions. For example,
showing that the defendant did not have an account with the bank at issue when the
check was written may create a presumption of intent. In other cases, intent may be
presumed if the defendant failed to respond within a certain time to a written notice that
the check had bounced.
Penalties for Check Fraud
There may be both civil and criminal fines for committing check fraud. In addition, a
judge typically will require a defendant to pay restitution to the victim, which will
compensate them for the value of the goods or services purchased with the worthless
check. A defendant also may receive a certain term of probation. This means that they
may need to complete conditions imposed by the judge, while also refraining from
writing more worthless checks or committing other crimes. In some unusual cases, a
defendant may be sentenced to a short term of imprisonment. This probably will not last
for more than 12 to 18 months and likely will be much shorter.

Check fraud most often is charged as a misdemeanor rather than a felony. The level of
the charge will depend on the value of the check or checks. (If a defendant wrote
multiple worthless checks, the value will be determined by the total value of the checks.)
The fine may be larger than the value of the check or checks.

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