Anti-Bouncing Checks law

• A person who issues a check knowing that it will not be honored is guilty of writing a bad check
• If there are insufficient funds, the bank may refuse payment or return the check unpaid
• The check must be drawn on an account with sufficient funds to cover the amount of the check
• One of the elements of violation of BP 22 is the making, drawing, and issuance of any check to apply for account or for value
• One of the elements of violation of BP 22 is 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 the check in full upon its presentment.
• One of the elements of Violation of BP 22 is the subsequent dishonor of the check by the drawee bank for insufficiency of funds or credit.
• One of the elements of violation of BP 22 is when the check would have been dishonored for the same reason had not the drawer, without any valid cause, ordered the bank to stop the payment.
• The making, drawing and issuance of check payment of which is refused by the drawee because of insufficient funds in, when presented within 90 days from the date of check, shall be prima facie evidence of knowledge of such insufficiency of funds or credit.
• In BP 22, the period to make the check good after notice requirements is 5 banking days.
• In all prosecutions under BP 22, the introduction in evidence of any unpaid and dishonored check, having the drawee's refusal to pay stamped or written thereon, with the reason therefor, shall be prima facie evidence of:

  1. The making or issuance of said check, and
  2. The due presentment to the drawee for payment, and
  3. The dishonor thereof, and
  4. That the same was properly dishonored for the reason written, stamped or attached by the drawee on such dishonored check.
• If the drawer has no intention to defraud, then it will not be considered as an offense.
• It means an arrangement or understanding with the bank for the payment of such check.

  Credit
• Imprisonment of not less than 30 days but not more than 1 year
• Fine of not less than but not more than double the amount of the check, which fine shall not exceed 200,000.
• Prescriptive period of BP 222 violation prescribes in 4 years from the commission of the offence or, if the same be not known at the time, from the discovery
• Unlike in BP 22, Good faith is a defence in estafa
• In BP 22, good faith is not a valid defense
• If the check is in payment of a pre-existing obligation, there is no deceit and hence, estafa cannot exist.
• In BP 22, even if check is issued to pay a pre-existing obligation, there may still be liability.
• Estafa may be committed by merely issuing a worthless check
• In BP 22, the accused must both drew and issued the check.
• Period to make good the check in estafa is 3 days.