Highlights of the Anti-Bouncing Checks Law (B.P.

22)

Acts punished

The law punishes the following acts:

a) Drawing or issuing a check as payment for any current or previous

transaction and the bank refuses to honor the check for reasons such as account
closed, drawn against insufficient funds, and similar others;

b) Failing to maintain sufficient funds within ninety (90) days from the date
appearing thereon to cover the full amount of the check; hence, the bank refused
payment.

Proof required to incur criminal liability

Once the bank refuses to pay the check presented within ninety (90) days from the
date appearing thereon, there is already a legal presumption that the issuer knows
that his funds are insufficient; thus, completing all the elements of the offense
and making him criminally liable.

To remedy the situation, the issuer must do any of the following: 1) pay the holder
the amount he owes, or 2) makes arrangements with the bank to pay the amount in
full on his behalf. Arrangements must be made within five (5) banking days after
the issuer receives notice that the bank refused to honor his check.

Chances of acquittal

Failure of the bank to give the issuer a written notice that his check was not
honoured may result to the accused-issuer�s acquittal. Without the written notice,
the issuer cannot be charged with knowledge of the insufficiency of his funds. This
is not a guarantee, however, since there are Philippine Supreme Court Decisions
that do not adhere strictly to the written notice requirement. Said cases ruled
that even verbal notice is sufficient to make the issuer criminally liable.