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BATAS PAMBANSA BLG 22 STUDY NOTES, Summaries of Law

AN ACT PENALIZING THE MAKING OR DRAWING AND ISSUANCE OF A CHECK WITHOUT SUFFICIENT FUNDS OR CREDIT AND FOR OTHER PURPOSES.

Typology: Summaries

2019/2020

Uploaded on 02/16/2022

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BATAS PAMBANSA BLG. 22
AN ACT PENALIZING THE MAKING OR DRAWING AND ISSUANCE OF A CHECK WITHOUT
SUFFICIENT FUNDS OR CREDIT AND FOR OTHER PURPOSES.
BOUNCING CHECKS LAW
The gravamen of the offense punished by BP 22 is the act of making and issuing a worthless
check or a check that is dishonored upon its presentation for payment.
Check bounces when either the account has already been closed or has insufficient
funds.
What is being punished is the issuance of a worthless check or dishonored upon
payment.
Non-payment of the obligation is not punished.
It is a criminal act; although, alternative with fine. No one will get imprisoned for non-
payment of debt.
The law is not intended or designed to coerce a debtor to pay his debt.
In actual practice, BP 22 is a form of encouragement to pay his debt.
The law aims to prohibit the making of worthless checks and putting them in circulation.
Check is not legal tender but a substitute for money. The debtor cannot force the creditor
to accept it as a form of payment.
The purpose is to be careful in issuing checks
REMEDIES:
1. File for collection of a sum of money
2. File for violation of BP 22
CHECK - A bill of exchange drawn on a bank and payable on demand.
Drawer – issues the check, in favor of the payee, who has an account in the drawee bank
Drawee Bank – releases the deposit
Collecting Bank account of the payee; forwards the check to the drawee bank and drawee
bank deducts it from drawer’s account. Drawer bank releases the money to the collecting bank.
Section 1.6Checks without sufficient funds.6- Any person who makes or draws and issues any
check to apply on account or for value, knowing at the time of issue that he does not have
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BATAS PAMBANSA BLG. 22

AN ACT PENALIZING THE MAKING OR DRAWING AND ISSUANCE OF A CHECK WITHOUT SUFFICIENT FUNDS OR CREDIT AND FOR OTHER PURPOSES. BOUNCING CHECKS LAW The gravamen of the offense punished by BP 22 is the act of making and issuing a worthless check or a check that is dishonored upon its presentation for payment.  Check bounces when either the account has already been closed or has insufficient funds.  What is being punished is the issuance of a worthless check or dishonored upon payment. Non-payment of the obligation is not punished.  It is a criminal act; although, alternative with fine. No one will get imprisoned for non- payment of debt. The law is not intended or designed to coerce a debtor to pay his debt.  In actual practice, BP 22 is a form of encouragement to pay his debt. The law aims to prohibit the making of worthless checks and putting them in circulation.  Check is not legal tender but a substitute for money. The debtor cannot force the creditor to accept it as a form of payment.  The purpose is to be careful in issuing checks REMEDIES:

  1. File for collection of a sum of money
  2. File for violation of BP 22 CHECK - A bill of exchange drawn on a bank and payable on demand. Drawer – issues the check, in favor of the payee, who has an account in the drawee bank Drawee Bank – releases the deposit Collecting Bank – account of the payee; forwards the check to the drawee bank and drawee bank deducts it from drawer’s account. Drawer bank releases the money to the collecting bank. Section 1. Checks without sufficient funds. - Any person who makes or draws and issues any check to apply on account or for value, 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 presentment, 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 , 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. *** Criminal liability – imprisonment or fine, or both The same penalty shall be imposed upon 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. Where the check is drawn by a corporation, company or entity, the person or persons who actually signed the check in behalf of such drawer shall be liable under this Act. ESSENTIAL ELEMENTS for one to be penalized under BP 22

  1. The making, drawing and issuance of any check to apply to account of for value;
  2. The knowledge of the maker, drawer, or issuer that at the time of issue, he does not have sufficient funds or credit with the drawee bank for the payment of such check in full upon its presentment; and  In a criminal case, the quantum of evidence is higher than in a civil case.  In a civil case, just preponderance evidence.
  3. Subsequent dishonor of the check by the drawee bank for the insufficiency of fund or credit or dishonor for the same reason had not the drawer, without any valid reason, ordered the bank to stop payment. Section 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 (5) banking days after receiving notice that such check has not been paid by the drawee.  It’s difficult to prove that the drawer received the notice of dishonor.  Presumption of knowledge arises only after it is proved that the issuer received a notice of dishonor and that, within 5 days from receipt thereof, he failed to pay or make arrangements to pay.