BATAS PAMBANSA BLG.

22
BOUNCING CHECKS LAW

Q1. What is the purpose of the law?

To penalize the person making or drawing and issued checks without sufficient funds or credit and to stop individuals
from engaging in such fraudulent practices that lead to financial disruption and harm to business transactions.

Q2. What is the nature of the offense?

BP 22 is a criminal offense. It involves the issuance of a check as a mode of payment, which is subsequently
dishonored upon presentment for payment due to insufficient funds, closed account or inexistent account.
NOTE: Person who violated BP 22 is also civilly liable for the act committed.

Q3. Two types of offenses covered by law

A. Checks without sufficient funds
Requisites:
1. The making, drawing, and issuance of any check to apply for an account or for value
2. The knowledge at the time of issuance that he does not have sufficient funds in or credit
3. The check is subsequent dishonored 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.
B. Having sufficient funds but failed to keep sufficient to cover a check issued
Requisites:
1. A person has sufficient funds in or credit with the drawee bank when he makes or draws and issues a
check
2. But fails to keep sufficient funds or maintain a credit to cover the full amount when the check is
presented within a period of 90 days from the date appearing thereon
3. The check is dishonored by the drawee bank
Note: Where the check is drawn by a corporaKon, company or enKty, the person or persons who actually signed the
check in behalf of such drawer shall be liable under this Act.

Q4. Create a table of comparison for First offense vs Second offense

1st offense 2nd offense
Knowledge of sufficiency of Knowledge of insufficient funds Knowledge of sufficient funds at the time of
funds or credit at the time of check making or drawing and issuance of check.
issuance. No knowledge of insufficiency of funds when
the check was presented to the drawee bank
within the period of 90 days.
Condition of the check issued Dishonored Dishonored
Presentment period Dishonored upon presentment, Dishonored upon presentment within the
no specific time constraint. period of 90 days.