Bouncing Checks

• Checks without sufficient funds

  1. Person makes or draws and issues any check to apply on account or for value, knowing at the time of issue that they do not have sufficient funds in or credit with the drawee bank for the payment of such check in full upon its presentment

  2. Check is subsequently dishonored by the drawee bank for insufficiency of funds or credit or would have been dishonored for the same reason had not the drawer, without any valid reason, ordered the bank to stop payment
• Person who makes or draws and issues any check without sufficient funds shall be punished by imprisonment of not less than thirty days but not more than one (1) year or by a fine of not less than but not more than double the amount of the check which fine shall in no case exceed Two Hundred Thousand Pesos, or both such fine and imprisonment at the discretion of the court
• Checks with sufficient funds

  1. Person has sufficient funds in or credit with the drawee bank when they make or draw and issue a check

  2. Fails to keep sufficient funds or to maintain a credit to cover the full amount of the check if presented within a period of ninety (90) days from the date appearing thereon

  3. Check is dishonored by the drawee bank
• The same penalty shall be imposed upon any person who, having sufficient funds in or credit with the drawee bank when they make or draw and issue a check, shall fail to keep sufficient funds or to maintain a credit to cover the full amount of the check if presented within a period of ninety (90) days from the date appearing thereon, for which reason it is dishonored by the drawee bank
• Where the check is drawn by a corporation, company or entity, the person or persons who actually signed the check on behalf of such drawer shall be liable under this Act
• SEC. 2. Evidence of knowledge of insufficient funds.—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 or drawer pays the holder thereof the amount due thereon, or makes arrangements for payment in full by the drawee of such check within five (5) banking days after receiving notice that such check has not been paid by the drawee.
• Duty of drawee when refusing to pay a check

  1. Write, print, or stamp the reason for dishonor or refusal to pay in plain language on the check or attach it

  2. If there are no sufficient funds or credit, explicitly state this fact in the notice of dishonor or refusal
• In 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, 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
• SEC. 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.