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BLAW-Bouncing-Check-Law-BP-22

Batas Pambansa Bilang 22 (Bouncing Checks Law) outlines the punishable acts related to issuing checks without sufficient funds, including the conditions under which a check is considered dishonored. The law specifies penalties for violations, which may include imprisonment, fines, or both, and establishes the evidence required to prove such violations. Additionally, it details the responsibilities of the drawee bank in cases of dishonored checks and the definitions of key terms such as 'credit.'

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18 views2 pages

BLAW-Bouncing-Check-Law-BP-22

Batas Pambansa Bilang 22 (Bouncing Checks Law) outlines the punishable acts related to issuing checks without sufficient funds, including the conditions under which a check is considered dishonored. The law specifies penalties for violations, which may include imprisonment, fines, or both, and establishes the evidence required to prove such violations. Additionally, it details the responsibilities of the drawee bank in cases of dishonored checks and the definitions of key terms such as 'credit.'

Uploaded by

Just nobody
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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College of Teacher Education

First Semester, A.Y. 2020-2021


Batas Pambansa Bilang 22 (Bouncing Checks Law)
II. Lecture

Batas Pambansa Bilang 22 (Bouncing Checks Law)


A. Punishable Acts under BP 22
1. Any person who (a) makes or draws or issues any check to apply on account or for value, (b) 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, (c) which check is subsequently dishonored by the drawee bank for
insufficient of funds or credit or would have been dishonored by the drawee bank for any valid reason, ordered
the bank to stop payment.

2. Any person who, having a sufficient fund 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 ninety (90) days from the date appearing thereon, for which the reason it is dishonored by the drawee
bank.

B. Elements of Criminal Violation of BP 22 for issuance of worthless checks


1. There must be making, drawing and issuance of any check to apply for account or for value.
2. There must be knowledge of the maker, drawer and issuer that at the time of issue he does not have sufficient
funds in or credit with the drawee bank for the payment of the check in full upon presentment.
3. There must be subsequent dishonor of the check by the drawee bank for insufficiency of funds or creditor
dishonor for the same reason had not the drawer, without any valid cause, ordered the bank to stop payment.

C. Penalty for the Violation of BP 22 at the discretion of the court


1. Imprisonment of not less than 30 days but not more than 1 year; or
2. 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
3. Both.

D. Evidence of knowledge of Insufficiency of Funds by the issuer of Worthless Check


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 90 days from the date of the check, shall be prima facie
evidence of knowledge of such insufficiency of funds or credit.

E. Evidence of Defense to destroy the pima facie evidence of knowledge of insufficiency of funds by the
issuer of the worthless checks
The maker or drawer pays the holder thereof the amount thereon, or makes arrangement for payment in full by the
drawee of such check within 5 banking days after receiving notice that such check has not been paid by the
drawee.

F. Duty of the Drawee Bank


It shall be the duty of the drawee of any check, when refusing to pay the same to the holder thereof upon
presentment, to cause to be written, printed or stamped In plain language thereon, or attached thereto, the
reason the drawee’s dishonor or refusal to pay the same. Provided, that where there are no sufficient funds in or
credit with such drawee bank, such fact shall always explicitly state in the notice of dishonor or refusal. In all
prosecutions under this act, the introduction in evidence in any unpaid and dishonored check, having the
drawee’s refusal to pay stamped or written thereon or attached thereto, with the reason therefor of aforesaid,
shall be prima facie evidence of the making or issuance of said check, and the due presentment to the drawee
for payment and the dishonor thereof, and that the same was properly dishonored for the reason written,
stamped or attached by the drawee on such dishonored check. Notwithstanding receipt of an order to stop ,
payment the drawee shall state in the notice that there were no sufficient funds in or credit with such bank for
the payment in full of such check, if such be the fact.

G. Credit Construed
The word ‘credit” as used herein shall be construed to mean an arrangement or understanding with the bank for
the payment of such check.

H. Evidence Required for violation of BP 22


1. To prove violation of BP 22 of for conviction of crime of BP 22- Proof beyond reasonable doubt
2. to prove civil damaged on civil action involving BP 22- Preponderance of Evidence
3. To sue or to file a case for violation of BP 22 – Probable cause or Prima Facie evidence

Prepared by:

KITHE D. CUARESMA

Checked by:

BONIFACIO TARAPE, SR, CPA, MBA


Program Head

Approved by:

EVELYN ABALOS-TOMBOC,DBA
University President

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