Bouncing Checks Law (BP 22)

• BATAS PAMBANSA BILANG 22

  Bouncing Checks Law
• Punishable Acts under BP 22

  • Any person who (a) makes or draws and issues any check to apply on account or for value, (b) knowing at the time of issue that he does not have sufficient funds in or credit with the drawee bank for the payment of such check in full upon its presentation, (c) which 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
  • Any person who, having sufficient funds in or credit with the drawee bank when he makes or draws and issues 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
• Elements of Criminal Violation of BP 22 for issuance of worthless checks

  • There must be making, drawing and issuance of any check to apply for account or for value
  • There must be 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
  • There must be subsequent dishonor of the check by the drawee bank for insufficiency of funds or creditor dishonor for the same reason had not the drawer, without any valid cause, ordered the bank to stop payment
• Duty of Drawee Bank


  It shall be the duty of the drawee of any check, when refusing to pay the same to the holder thereof upon presentment, to cause to be written, printed, or stamped in plain language thereon, or attached thereto, the reason for drawee's dishonor or refusal to pay the same
• Credit


  An arrangement or understanding with the bank for the payment of such check
• Evidence Required for Violation of BP 22

  • To provide violation of BP 22 or for conviction of crime of BP 22-Proof beyond reasonable doubt
  • To prove civil damages on civil action involving BP 22 - Preponderance of evidence
  • To sue or to file a case for violation of BP 22 - Probable cause or Prima Facie evidence
• Penalty for Violation of BP 22 at the discretion of the court

  • Imprisonment of not less than thirty days but not more than one (1) year
  • 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
  • Both imprisonment of not less than thirty days but not more than one (1) year and 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
• Evidence of Knowledge of Insufficiency of Frauds by the Issuer of Worthless Check

  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 credits
• The 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 (5) banking days after receiving notice that such check has not been paid by the drawee