BATAS PAMBANSA BLG.

22 stamped in plain language thereon, or attached

AN ACT PENALIZING THE MAKING OR
DRAWING AND ISSUANCE OF A CHECK
WITHOUT SUFFICIENT FUNDS OR CREDIT AND
FOR OTHER PURPOSES.
Section 1. Checks without sufficient funds. - Any
person who makes or draws and issues any check to
apply on account or for value, 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, which check is
subsequently dishonored by the drawee bank for
insufficiency of funds or credit or would have been
dishonored for the same reason had not the drawer,
without any valid reason, ordered the bank to stop
payment, shall be punished by imprisonment of not
less 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 which fine shall in no case
exceed Two Hundred Thousand Pesos, or both such
fine and imprisonment at the discretion of the court.
The same penalty shall be imposed upon any person
who, having sufficient funds 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 reason it is
dishonored by the drawee bank.
Where the check is drawn by a corporation, company
or entity, the person or persons who actually signed
the check in behalf of such drawer shall be liable
under this Act.
thereto, the reason for 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 be explicitly stated in the notice
of dishonor or refusal. In all prosecutions under this
Act, the introduction in evidence of any unpaid and
dishonored check, having the drawee's refusal to pay
stamped or written thereon or attached thereto, with
the reason therefor as 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.
Not with standing 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.
Section 4. 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.
Section 5. Liability under the Revised Penal Code. -
Prosecution under this Act shall be without prejudice
to any liability for violation of any provision of the
Revised Penal Code.
Section 6. Separability clause. - If any separable
provision of this Act be declared unconstitutional, the
remaining provisions shall continue to be in force.
Section 7. Effectivity. - This Act shall take effect
fifteen days after publication in the Official Gazette.

Section 2. Evidence of knowledge of insufficient Approved: April 3, 1979.

funds. - 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 or credit unless such
maker or drawer pays the holder thereof the amount
due thereon, or makes arrangements 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.

Section 3. Duty of drawee; rules of evidence. - 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
 REPUBLIC ACT No. 1405

AN ACT PROHIBITING DISCLOSURE OF OR

INQUIRY INTO, DEPOSITS WITH ANY BANKING
INSTITUTION AND PROVIDING PENALTY
THEREFOR.

Section 1. It is hereby declared to be the policy of the

Government to give encouragement to the people to
deposit their money in banking institutions and to
discourage private hoarding so that the same may be
properly utilized by banks in authorized loans to assist
in the economic development of the country.

Section 2. All deposits of whatever nature with banks

or banking institutions in the Philippines including
investments in bonds issued by the Government of the
Philippines, its political subdivisions and its
instrumentalities, are hereby considered as of an
absolutely confidential nature and may not be
examined, inquired or looked into by any person,
government official, bureau or office, except upon
written permission of the depositor, or in cases of
impeachment, or upon order of a competent court in
cases of bribery or dereliction of duty of public
officials, or in cases where the money deposited or
invested is the subject matter of the litigation.

Section 3. It shall be unlawful for any official or

employee of a banking institution to disclose to any
person other than those mentioned in Section two
hereof any information concerning said deposits.

Section 4. All Acts or parts of Acts, Special Charters,

Executive Orders, Rules and Regulations which are
inconsistent with the provisions of this Act are hereby
repealed.

Section 5. Any violation of this law will subject

offender upon conviction, to an imprisonment of not
more than five years or a fine of not more than twenty
thousand pesos or both, in the discretion of the court.

Section 6. This Act shall take effect upon its approval.

Approved: September 9, 1955

MALACAÑANG
Manila to establish such fraud or irregularity, or when the
examination is made by an independent auditor hired by the
PRESIDENTIAL DECREE No. 1792 bank to conduct its regular audit provided that the
examination is for audit purposes only and the results
thereof shall be for the exclusive use of the bank, or upon
written permission of the depositor, or in cases of
AMENDING REPUBLIC ACT NO. 1405 impeachment, or upon order of a competent court in cases
of bribery or dereliction of duty of public officials, or in
cases where the money deposited or invested is the subject
matter of the litigation.
WHEREAS, under existing legal framework, the Central
Bank has the authority to examine all records of banks in
the discharge of its responsibilities under the Central Bank
Charter; Sec. 2. Sec. 3 of the same Act is hereby amended to read as
follows:

WHEREAS, the prohibition against inquiry into bank

deposits adversely delimits the examining authority of the
Central Bank.
WHEREAS, limited examination powers operate against
effective supervision of banks and endangers the safety of
deposits which may affect the public's faith in the banking
system.
Sec. 3. It shall be unlawful for any official or employee of
a bank to disclose to any person other than those mentioned
in Section Two hereof, or for an independent auditor hired
by a bank to conduct its regular audit to disclose to any
person other than a bank director, official or employee
authorized by the bank, any information concerning said
deposits.

Sec. 3. This Decree shall take effect immediately.

NOW, THEREFORE, I, FERDINAND E. MARCOS,

President of the Philippines, by virtue of the powers in me
vested by the Constitution, do hereby decree and make the Done in the City of Manila, this 16th day of January, in the
following part of the law of the land; year of Our Lord, nineteen hundred and eighty-one.

Section 1. Sec. 2 of Republic Act No. 1405 is hereby

amended to read as follows:

Sec. 2. All deposits of whatever nature with banks or

banking institutions in the Philippines including
investments in bonds issued by the Government of the
Philippines, its political subdivisions and its
instrumentalities, are hereby considered as of an absolutely
confidential nature and may not be examined, inquired or
looked into by any person, government official, bureau or
office, except when the examination is made in the course
of a special or general examination of a bank and is
specifically authorized by the Monetary Board after being PRESIDENTIAL DECREE No. 679 April 2, 1975
satisfied that there is reasonable ground to believe that a
bank fraud or serious irregularity has been or is being AMENDING ACT NUMBERED THIRTY NINE
committed and that it is necessary to look into the deposit HUNDRED AND THIRTY SIX, AN ACT REQUIRING
 BANKS, TRUST CORPORATIONS, AND
BUILDING AND LOAN ASSOCIATIONS, TO
TRANSFER UNCLAIMED BALANCES HELD BY
THEM TO THE TREASURER OF THE
PHILIPPINES AND FOR OTHER PURPOSES.
WHEREAS, Act No. 3936 requires the publication of
a sworn statement of unclaimed balances in banks
once a week of three consecutive weeks in at least
two newspapers of general circulation in the locality
where the banks are situated, if there be any, and if
there is none, in the City of Manila, one in English and
one in Spanish, the cost of which shall be paid by the
Bureau of Treasury, which shall be reimbursed out of
the escheated funds;
WHEREAS, the law also provides for the publication
of summons and a notice upon the commencement of
the prescribed judicial proceedings for the escheat of
unclaimed balances;
WHEREAS, past experience has shown that the cost
of publication required by law, the increase of which
has been substantial the past few years, is more than
the aggregate amount of the unclaimed balances to
be escheated, the average amount of which is small;
WHEREAS, there is a felt need to simplify the
procedure for the escheat of unclaimed balances for
the purpose of reducing the expenses therefor;
NOW, THEREFORE, I, FERDINAND E. MARCOS,
President of the Philippines, by virtue of the powers in
me vested by the Constitution, do hereby decree and
order:
Section 1. Sections 1, 2, 3, 4, and 5 of Act No. 3936
are hereby amended to read as follows:
"Sec. 1.”Unclaimed balances", within the meaning of
this Act, shall include credits or deposits of money,
bullion, security or other evidence of indebtedness of
any kind, and interest thereon with banks, buildings
and loan associations, and trust corporations, as
hereinafter defined, in favor of any person known to
be dead or who has not made further deposits or
withdrawals during the preceding ten years or more.
Such unclaimed balances, together with the increase
and proceeds thereof, shall be deposited with the
Treasurer of the Philippines to the credit of the
Government of the Republic of the Philippines to be
used as the National Assembly may direct.
"Banks", "building and loan associations" and "trust
corporations", within the meaning of this Act, shall
refer to institutions defined under Section two, thirty-
nine and fifty-six, respectively, of Republic Act
Numbered Three Hundred Thirty Seven, otherwise
known as the General Banking Act, as amended,
whether organized under special charters or not.
"Sec. 2. Immediately after the taking effect of this Act
and within the month of January of every odd year, all
banks, building and loan associations, and trust
corporations shall forward to the Treasurer of the
Philippines a statement, under oath, of their
respective managing officers, of all credits and
deposits held by them in favor of persons known to be
dead, or who have not made further deposits or
withdrawals during the preceding ten years or more,
arranged in alphabetical order according to the names
of creditors and depositors, and showing:
"(a) The names and last known place of
residence or post office addresses of the
persons in whose favor such unclaimed
balances stand;
"(b) The amount and the date of the
outstanding unclaimed balance and whether
the same is in money or in security, and if the
latter, the nature of the same;
"(c) The date when the person in whose favor
the unclaimed balance stands died, if known,
or the date when he made his last deposit or
withdrawal; and
"(d) The interest due on such unclaimed
balance, if any, and the amount thereof.
"A copy of the above sworn statement shall be posted
in a conspicuous place in the premises of the bank,
building and loan association, or trust corporation
concerned for at least sixty days from the date of filing
thereof: Provided, That immediately before filing the
above sworn statement, the bank, building and loan
association, and trust corporation shall communicate
with the person in whose favor the unclaimed balance
stands at his last known place of residence or post
office address.
"It shall be the duty of the Treasurer of the Philippines
to inform the Solicitor General from time to time the
existence of unclaimed balances held by banks,
building and loan associations, and trust corporations.
"Sec. 3. Whenever the Solicitor General shall be
informed of such unclaimed balances, he shall
commence an action or actions in the name of the
People of the Republic of the Philippines in the Court
of First Instance of the province or city where the
bank, building and loan association or trust
corporation is located, in which shall be joined as
parties the bank, building and loan association or trust
corporation and all such creditors or depositors. All or
any of such creditors or depositors or banks, building
and loan association or trust corporations may be
included in one action. Service of process in such
action or actions shall be made by delivery of a copy
of the complaint and summons to the president,
cashier, or managing officer of each defendant bank,
building and loan association or trust corporation and
by publication of a copy of such summons in a
newspaper of general circulation, either in English, in
Filipino, or in a local dialect, published in the locality
where the bank, building and loan association or trust
corporation is situated, if there be any, and in case
there is none, in the City of Manila, at such time as the
court may order. Upon the trial, the court must hear all
parties who have appeared therein, and if it be
determined that such unclaimed balances in any
defendant bank, building and loan association or trust
corporation are unclaimed as hereinbefore stated,
then the court shall render judgment in favor of the
Government of the Republic of the Philippines,
declaring that said unclaimed balances have
escheated to the Government of the Republic of the
Philippines and commanding said bank, building and
loan association or trust corporation to forthwith
deposit the same with the Treasurer of the Philippines
to credit of the Government of the Republic of the
Philippines to be used as the National Assembly may
direct.
"At the time of issuing summons in the action above
provided for, the clerk of court shall also issue a notice
signed by him, giving the title and number of said
action, and referring to the complaint therein, and
directed to all persons, other than those named as
defendants therein, claiming any interest in any
unclaimed balance mentioned in said complaint, and
requiring them to appear within sixty days after the
publication or first publication, if there are several, of
such summons, and show cause, if they have any,
why the unclaimed balances involved in said action
should not be deposited with the Treasurer of the
Philippines as in this Act provided and notifying them
that if they do not appear and show cause, the
Government of the Republic of the Philippines will
apply to the court for the relief demanded in the
complaint. A copy of said notice shall be attached to,
and published with the copy of, said summons
required to be published as above, and at the end of
the copy of such notice so published, there shall be a
statement of the date of publication, or first
publication, if there are several, of said summons and
notice. Any person interested may appear in said
action and become a party thereto. Upon the
publication or the completion of the publication, if
there are several, of the summons and notice, and the
service of the summons on the defendant banks,
building and loan associations or trust corporations,
the court shall have full and complete jurisdiction in
the Republic of the Philippines over the said
unclaimed balances and over the persons having or
claiming any interest in the said unclaimed balances,
or any of them, and shall have full and complete
jurisdiction to hear and determine the issues herein,
and render the appropriate judgment thereon.
"Sec. 4. If the president, cashier or managing officer
of the bank, building and loan association, or trust
corporation neglects or refuses to make and file the
sworn statement required by this action, such bank,
building and loan association, or trust corporation
shall pay to the Government the sum of five hundred
pesos a month for each month or fraction thereof
during which such default shall continue.
"Sec. 5. Any bank, building and loan association or
trust corporation which shall make any deposit with
the Treasurer of the Philippines in conformity with the
provisions of this Act shall not thereafter be liable to
any person for the same and any action which may be
brought by any person against in any bank, building
and loan association, or trust corporation for
unclaimed balances so deposited with the Treasurer
of the Philippines shall be defended by the Solicitor
General without cost to such bank, building and loan
association or trust corporation."
Section 2. This Decree shall take effect immediately.
DONE in the City of Manila, this 2nd day of April, in
the year of Our Lord, nineteen hundred and seventy-
five.