I.

BOUNCING CHECKS

I.a. REQUISITES TO BE LIABLE UNDER BP 22

▪ 1)Making, drawing, and issuance of any check to apply for account or for
value
2) Knowledge of the maker, drawer or issuer that at the time of issue he
does not have sufficient funds in or credit with the DE bank for the
payment of the check in full upon its presentment; and
3) (a) Subsequent dishonor of the check by the DE bank for insufficiency
of funds or credit; or (b) would have been dishonored for the same reason
had not the drawer, without any valid cause, ordered the bank to stop
payment.

▪ By having sufficient funds in or credit with DE bank at the time of issue:

1) Any person makes or draws and issues a check;
2) Such a person has sufficient funds in or credit with the DE bank;
3) Failure to keep sufficient funds or to maintain a credit to cover the full
amount of check if presented within a period of 90 days from the date
appearing thereon;
4) For which reason, it was dishonored by DE bank.

▪ If the check is drawn by corporation or entity, the one who actually signed
is liable.

I.a.i. Checks without insufficient funds

I.a.ii. Evidence of knowledge of insufficient funds

▪ When presented within 90 days from the date of the check – prima facie
evidence of knowledge of insufficiency of funds or credit

▪ Valid defense (not liable) – pays the holder the amount due on the check,
or makes arrangement for payment in full by the draw of such check within
5 banking days after receiving the notice of dishonor

I.a.iii. Duty of drawee

▪ Refuse to pay the check to the holder upon presentment, the cause must
written, printed or stamped in plain language thereon, or attached thereto,
the reason for DE’s dishonor or refusal to pay the same.

▪ No sufficient funds in or credit with DE bank, such fact shall always be

explicitly stated in the notice of dishonor or refusal. Notwithstanding
receipt of an order to stop payment.

I.a.iv. Credit construed

▪ An arrangement or understanding with the bank for the payment of such

check.

I.b. EFFECT OF ACQUITTAL ON CIVIL LIABILITY

 ▪ Acquittal does not necessarily extinguish the civil liability for the
dishonored checks. An acquittal based on lack of proof beyond reasonable
doubt does not preclude the award of civil damages.

I.c. PENALTY AND PRESCRIPTIVE PERIOD

▪ Penalty:
1) Imprisonment – 30days to 1yr;
2) Fine – not less than but not more than double the amount of the check
which fine shall not exceed the amount of P200,000; or
3) Both, at the discretion of the court

▪ Prescriptive period: 4yrs from the commission of the offense or, if the same
be not known at the time, from the discovery thereof.

I.d. COMPARISON WITH ESTAFA (Art. 315 (2d))

Violation under BP 22 Estafa by post-dating

or issuing a worthless
check
Good faith as GF is not a valid GF is a valid defense
defense defense By informing the
payee, there is no
deceit.
Payment of pre- Even if the check is If the check is in
existing obligation issued to pay a pre- payment of a pre-
existing obligation, existing obligation
there may still be there is no deceit and
liability. hence, there is no
estafa.
Issuing a worthless Accused both drew Merely issuing a
check and issued the check worthless check,
there is estafa
Period to make 5 banking days 3 days from receipt of
good the check notice
It is settled that a single act can give rise to estafa and at the same
time to violation of BP 22.