CZARINA JANE A.

PACTURAN INSUFFICIENT FUND:

AEC 65 - ACD  When any person who makes or draws and issues any check
to apply on account or for value, knowing at the time of issue that
GUIDE QUESTIONS: BP 22 BOUNCING CHECKS LAW 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
1. What is the purpose of the law? check is subsequently dishonored by the drawee bank for
insufficiency of funds or credit or would have been dishonored for
Batas Pambansa Blg 22, otherwise known as the Bouncing the same reason had not the drawer, without any valid reason,
Checks Law, is enacted for the protection of the public, ordered the bank to stop payment
most00000000000000 especially the businessmen, who issue and
receive checks as a matter of practice. In short, BP 22 punishes the SUFFICIENT FUND:
mere issuance of a worthless check.
 When any person who, having sufficient funds in or credit
2. What is the nature of the offense? 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
A violation of BP 22 is a continuing or transitory offense, full amount of the check if presented within a period of ninety (90)
which is oft-repeated in our jurisprudence. Under this doctrine, days from the date appearing thereon, for which reason it is
jurisdiction may be had in several places where one of the acts dishonored by the drawee bank.
material to the crime occurred.
4. Create a table of comparison for First offense vs Second offense
BP 22 was enacted to discourage the issuance of bouncing
checks, to prevent checks from becoming “useless scraps of Point of comparison 1st offense 2nd offense
paper,” and to restore respectability to checks.
Knowledge of There is knowledge of There is no knowledge
CRIMINAL OFFENSE since it is punishable by law sufficiency of funds insufficiency   of insufficiency
condition of the check Dishonored Dishonored
3. Two types of offenses covered by law issued
Presentment period 90 days (prima facie)  90 days (prima facie)
(1) By making or drawing and issuing a check to apply on
account or for value, knowing at the time of issue that the check
is not sufficiently funded;

(2) by having sufficient funds in or credit with the drawee

bank at the time of issue but failing to do so to cover the full amount
of the check when presented to the drawee bank within a period of
90 days
 3. That the check is subsequently dishonored by the drawee bank
for insufficiency of funds or creditor or would have been
dishonored for the same reason had not the drawer, without any
valid reason, ordered the bank to stop payment.
5. What is the similarity of both offenses?
The elements that constitute the second punishable act under
Both have similar PENALTY— Imprisonment of not less this law are the following:
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 1. That a person has sufficient funds with the drawee bank when
which fine shall in no case exceed Two Hundred Thousand he makes or draws and issues a check;
Pesos, or both such fine and imprisonment at the discretion of 2. That he fails to keep sufficient funds to maintain a credit to cover
the court. the full amount if presented within a period of 90 days from the
date appearing on the face of the check;
Both results to dishonor of checks with the payee at a 3. That the check is dishonored by the drawee bank; and
disadvantage when the requisites are not met 4. After receiving such written notice and demand refuses or fails
to pay the value of the check within five (5) banking days.

7. Who are the parties to a check?  Liability of each party.

6. What are the requisites to be liable for violating BP 22?
 Drawer or issuer debtor, the one ordering the drawee bank to
To be liable for a violation of BP 22, the following essential pay the payee. Liable to the payee for the amount indicated
elements, as paraphrased, must be present: (1) the making, on the check.
drawing, and issuance of any check for value; (2) the knowledge  Drawee is the bank where the drawer maintains an account
of the maker, drawer, or issuer that at the time of issuance he
and ordered to pay the check upon presentment of payment.
does not have sufficient funds in or credit with the drawee bank;
Liable for notifying the payee of the check in a written,
and (3) the subsequent dishonor of the check by the drawee
printed or stamped notice the reason for the drawee’s
bank for insufficiency of funds or credit
dishonor or refusal to pay the amount
The elements that constitute the first punishable act under this  Payee, who is the person to whom the drawee bank should
law are the following: give the amount of money as written in the check. No liability.

1. That a person makes or draws and issues any check to apply on 8. What are the elements of notice of dishonour?
account or for value;
2. That the person knows that at the time of issue, he does not a. Inform the parties secondarily liable that the maker or
have sufficient funds in or credit with the drawee bank for the acceptor, as the case may be, has failed to meet his
payment of such check upon its presentment; and engagement, and
 b. To advise such parties that they will be required to make 11. Effect of payment within the 5-day period
payment
The period starts to run only after the 5-day period
c. This is only done when a negotiable instrument considered to because it is only then that the crime is consummated, as Batas
be dishonored: Pambansa Blg. 22 gives the issuer an opportunity to avoid
criminal charges by making good (paying) the check issued
d. If it is not accepted when presented for acceptance; within five (5) calendar days from receipt of the notice.

e. If it is not paid when presented for payment or maturity f. If Issuing a bouncing check with the use of false pretenses
presentment is excused or waived and the instrument is past or fraudulent acts executed prior to or simultaneously with the
due and unpaid commission of the fraud: “By postdating a check, or issuing a
check in payment of an obligation when the offender had no
9. When will the presumption of deceit arise? funds in the bank, or his funds deposited therein were not
sufficient to cover the amount of the check.”
The drawer of the dishonored check is given three days
from receipt of the notice of dishonor to cover the amount of the 12. What is a post-dated check?
check, otherwise, a prima facie presumption of deceit arises.
Ante/post-dated checks are those checks issued on a
Issuing a bouncing check with the use of false pretenses particular date but the date as found in the check itself could be
or fraudulent acts executed prior to or simultaneously with the prior to or after the date of issuance
commission of the fraud: “By postdating a check, or issuing a
check in payment of an obligation when the offender had no 13. Can a post-dated check be dishonored ?
funds in the bank, or his funds deposited therein were not
sufficient to cover the amount of the check.” Issuing a bouncing check with the use of false pretenses
or fraudulent acts executed prior to or simultaneously with the
commission of the fraud: “By postdating a check, or issuing a
check in payment of an obligation when the offender had no
10. When will presumption of knowledge of insufficiency of funds funds in the bank, or his funds deposited therein were not
arise? sufficient to cover the amount of the check.”

Under the law, the prima facie evidence of insufficiency of If the check is post-dated and the payee presents the
funds will arise if the drawee bank refuses to pay or honor the check to the bank before the due date, the bank will dishonor
check within ninety (90) days from the date of the check, unless the check. If there is an alteration on the face of the check, the
the maker pays the holder of the check the amount due or bank may not honor the check.
makes arrangements for payment in full by the drawee bank
within five (5) banking days after receiving notice that the check
was dishonored (Section 2, BP 22).
14. Elements of estafa by issuing a check – estafa thru issuance of Thus, being separate, distinct and independent from each
bouncing check (Article 315 (2), Revised Penal Code, as other, you can file an Estafa case and a BP 22 case at the same
amended by RA 4885) time.

The elements of estafa under paragraph 2(d), Article 315 YES. A person liable for BP 22 may at the same time be
of the Revised Penal Code are: (1) the postdating or issuance of liable for Estafa under Article 315 (2-d) of the Revised Penal
a check in payment of an obligation contracted at the time the Code. “By means of the following false pretenses or fraudulent
check was issued; (2) lack of sufficiency of funds to cover the acts executed prior to or simultaneously with the commission of
check; and (3) damage to the payee. the fraud:”

a. The offender has postdated or issued a check in

payment of an obligation contracted at the time of the postdating
or issuance; 16. Distinguish BP 22 v Estafa
b. At the time of postdating or issuance of said check, the
offender has no funds in the bank or the funds deposited are not Point of comparison BP 22 ESTAFA
sufficient to cover the amount of the check; and Penal law that  Batas Pambansa  Article 315 (2-d) on
sanctions the crime Bilang 22 - The Anti- Swindling/Estafa of
c. The payee has been defrauded. It has been settled in Bouncing Check law the Revised Penal
jurisprudence that in the above-defined form of estafa, it is not Code
the nonpayment of a debt which is made punishable, but the Kind of crime  Criminal and Civil  Criminal and Civil Crime
criminal fraud or deceit in the issuance of a check. Crime against public against public interest
interest
15. May a person be liable for BP 22 and at the same time for estafa Nature of the crime  Mala prohibitum.  Mala in se.
under Article 315 (2-d) of the Revised Penal Code?
The mere The action is wrong in
Essentially, while a BP 22 case and an estafa case may commission of the itself or by nature,
be rooted from an identical set of facts, they nevertheless act that the law thus, good faith is a
present different causes of action, which, under the law, are prohibits, and not its proper defense. Good
considered “separate, distinct, and independent” from each character or effect faith may be
other. Therefore, both cases can proceed to their final that determines demonstrated by the
adjudication – both as to their criminal and civil aspects – whether or not the driver’s offer to
subject to the prohibition on double recovery. Perforce, a ruling provision has been arrange a payment
in a BP 22 case concerning the criminal and civil liabilities of the violated; and malice scheme with his
accused cannot be given any bearing whatsoever in the criminal or criminal intent is creditor or making full
and civil aspects of a related estafa case, as in this instance.” completely payment for the entire
immaterial. amount of the
dishonor.
 a. Making, drawing a. Postdating or obligation. contracted prior to
and issuance of any issuance of a check in such issuance.
check to apply for payment of an
account or for value; obligation contracted
at the time the check
b. Knowledge of the was issued 17. Penalty imposable for conviction for issuance of bouncing check
maker, drawer, or
issuer that at the b. Insufficiency of BP 22
time of issue he funds to cover the
does not have check, and  Imprisonment of 30 days to 1 year and/or Fine of not less
sufficient funds in or than the amount, but not more than double the amount of the
credit with the c. Damage to the check, which shall not exceed Php. 200,000.00
drawee bank for the payee thereof.
payment of such ESTAFA
check in full upon its d. If any of these is a. Prision Correccional in its maximum period to prison
presentment; and absent, a person mayor in its minimum period, if the amount of Php 12,000.00 but
cannot be held liable does not exceed Php 22,000.00.
c. Subsequent for Estafa.
b. If the amount exceeds this, the penalty shall be in its
dishonor of the
check by the drawee maximum period, adding one year for each additional Php
bank for insufficiency 10,000.00; and
of funds or credit or c. Shall not exceed 20 years.
dishonor for the
same reason had not
the drawer, without
any valid cause,
ordered the bank to
stop payment
Designation of the  Deceit and damage  Deceit should be the
crime in relation to its are not essential. efficient cause of the
nature defraudation and
damage was made.
Would there be  Yes. It penalizes the  No. Only civil liability.
criminal liability if dishonor of a It does not penalize
check was issued for worthless check the dishonor of a
pre-existing given in payment of check issued in
obligation? a pre-existing payment of a debt