De-Mystifying the Bouncing Checks Law (B.P.

22)
By: Nicolas & De Vega Law Offices

A common predicament faced by businessmen is

violating the Batas Pambansa Blg. 22 also known as the
Bouncing Checks Law. Evidently, businessmen issue checks
as a matter of practice, and sometimes when the due dates of
these checks fall, either by inadvertence or unavailable
finances, the check bounces.

BP 22 punishes a person for issuing a worthless

check. A check is obviously worthless when, at the time it

is encashed for payment, which must be within ninety days
from issuance, it is dishonored by the issuing bank because of
insufficient funds, or even when the account against which the
check was drawn was already closed. In any of these cases,
the issuer of the check commits a violation of BP 22, and may
be held liable for imprisonment of thirty days to one year or a
fine a double the value of the check or both at the discretion of
the court. Moreover, the issuer of the check may also be liable
for imprisonment, even if only a fine is imposed by the court, if
the issuer has no sufficient property to pay the fine imposed,
in which case he or she shall be liable to serve a prison term
at the rate of one day for each eight pesos of the unpaid fine.

Another manner in which a person becomes liable under

BP 22 is when the issuer orders his or her bank to make a
stop payment of the check without any valid reason and the
check would have been dishonored for insufficiency of funds
had it not been for the stop payment order given by the issuer.

It must also be remembered that prosecution under BP

22 is not a bar for prosecution for Estafa, and the issuer of the
check may be held liable for one or both crimes, singly or
simultaneously when the complaints are filed in separate
courts.

But the issuer of the check is not left with remedies.

Our Supreme Court has sanctioned numerous defenses
which have acquitted individuals charged with a violation of
BP 22. Possible defenses in an indictment include 1) payment
of the value of the dishonored check within five banking days
from receipt of the notice of dishonor; 2) payment of the value

1
of the check before filing of the criminal case in court; 3)
failure to serve a written notice of dishonor of the check to
the issuer; 4) novation or change in the underlying obligation
of the parties before the filing of the criminal case in court;
5) a stop payment order pursuant to a valid reason such as
non-delivery of goods or services; and 6) knowledge by the
payee that the check was not supported by sufficient funds
when the issuer issued the check.

A violation of BP 22 is not really a wrong in itself or

involves wrongful or immoral conduct. Since committing a
violation of BP 22 is not an inherently wrong act, the Supreme
Court has, in numerous cases, merely imposed a penalty of
fine, understanding the nature of the offense and the problems
that every businessman encounters.

Let us help you. For further inquiries, you may seek legal
assistance by e-mailing us at info@ndvlaw.com.

Nicolas & De Vega Law Offices is a full service law firm in

the Philippines. You may visit us at the 16th Flr., Suite 1607
AIC Burgundy Empire Tower, ADB Ave., Ortigas Center, 1605
Pasig City, Metro Manila, Philippines. You may also call us at
+632 4706126, +632 4706130, +632 4016392.