NOTES ON VIOLATION OF BATAS PAMBANSA BILANG 22

By Atty. Cheryll S. de Mesa

BP 22: 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

Acts Penalized:

 Making, drawing or issuing of any check that would apply on account or for
value, knowing that at the time of issue, he does not have sufficient funds
in or credit with the drawee bank for the payment of such check in full upon
presentment
o That check is subsequently dishonored by the drawee bank for
insufficiency of funds or credit or
o Would have been dishonored for the same reason had not the drawer,
without any valid reason, ordered the bank a stop payment
 (having sufficient funds to cover full amount of check at the time of the
making, drawing or issuance of check) but failed to keep sufficient funds or
to maintain a credit to cover full amount of check at time of presentment
within a period of 90 days from date of appearing thereon, for which
reason it is dishonored by drawee bank.

Punishment: (at the discretion of the court)

 Imprisonment for not less than 30 days but not more than 1 yr or
 By a fine of not less than but not more than double the amount of the check
which fine shall not exceed 200K or
 Both fine and imprisonment

Section. 2 Evidence of knowledge of insufficient funds

 Dishonor of drawee bank is to be a prima facie evidence of knowledge of such

insufficiency of funds or credit
Unless

o 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.
For presumption to apply, the ff. requisites must be met: *notice of non-
payment must be
1. check is presented w/in 90 days from date of the check given for
2. drawer or maker of the check receives notice that such check has
presumption to
not been paid by the drawee; and
3. drawer or maker of the check fails to pay the holder of the check apply since lack of
amount due thereon, or to make arrangements for its payment in 5 which prevents the
working days after receiving written notice that such check has not determination of the
been paid by the drawee. crucial 5-day period.
Section. 3 Duty of drawee; rules of evidence

 When refusing to pay the holder upon presentment, it should have the refusal
be written, printed, or stamped in plain language thereon or attached thereto,
the reason for drawee’s dishonor or refusal to pay the same.
Provided:

o Where there are no sufficient funds in or credit with such drawee bank,
such fact shall always be 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.

 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.

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.

Approved: April 3, 1979.

Took effect: June 29, 1979 (15 days after its publication on June 14, 1979)

Notes:

 Where check is drawn by a corporation, company or entity  person or persons

who actually signed the check in behalf of such drawer is/are liable under BP 22.
  Deceit is not an essential element of the offense
 Malice or criminal intent is immaterial.
 Every element of the crime is still to be proven before the trial court to warrant a
conviction for violation thereof.

 ELEMENTS:
a. The making, drawing and issuance of any check to apply on account or for
value;
b. 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 the payment of
such check in full upon its presentment; and
c. Subsequent dishonor of the check by the drawee-bank for insufficiency of
funds or credit, or dishonor for the same reason had not the drawer, without any
valid cause, ordered the bank to stop payment.
 Checks covered: covers all kinds of checks drawned against banks and issued in the
Philippines.
 Mere act of issuing a worthless check whether as a deposit, as a guarantee, or an
accommodation, or even as an evidence of a pre-existing debt, is a malum prohibitum.
 Includes within its coverage:
o Making and issuing of a check by one who has no account with a bank or
o Where such account was already closed when the check was presented for
payment.
 Under the law, foreign checks, provided they were drawn and issued in the
Philippines though payable outside thereof, are within the coverage of the law.
 Aim of the act: to put a stop to or curb the practice of issuing checks that are
worthless.
o What the law punishes is the making of worthless checks and putting them in
circulation.
 Presumption cannot hold if there is evidence to the contrary.
 A check that was dishonoured due to closed account is also a check dishonoured
due to insufficiency of funds.
 The maximum fine that can be imposed on the accused in case of conviction is
Php200,000
 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 of drawer
pays the holder thereof the amount due thereon, or makes arrangement for
payment in full by the drawee of such check within five (5) banking days after
receiving notice that such check was has not been paid by the drawee.
 If a check was dishonoured due to stop payment order, the drawee bank is obliged
to explicitly state in the notice of dishonour whether or not there are sufficient
funds had there been no stop payment order.
 Credit is an arrange or undertaking with the bank for the payment of a check.
 A person who issued a bouncing check may also be prosecuted for estafa punishable
under the Revised Penal Code aside from being criminally liable under BP 22.