Anti-Bouncing Check Law Flashcards
Parties in a check
Drawer- One who issues or makes the check
Drawee- The party that processes the check
Payee- The party to whom the check is issued to
Elements of Violation
- The issuance of any check to apply for account or value
- Knowledge of drawer that at the time of issue he does not have sufficient funds with the drawee bank for payment of check upon presentment.
- (a) Subsequent dishonor of the check by the drawee bank due to insufficiency of funds. (b) would have been dishonored for same reason had not the drawer without cause ordered bank to stop payment
What is considered knowledge of the drawer of insufficiency of funds
When presented within 90 days from the date of the check, the drawee refuses the check due to insufficient funds.
Duty of the drawee
When refusing to pay the credit to the holder, he shall upon presentment of check state the reason for dishonor or refusal to pay whether written, printed, or stamped in plain language.
Penalty for Violation of Dishonored Check
- Imprisonment of not 30 days =< x =< 1 year
- Fine- not less than but not more than double the amount of the check which will not exceed 200,000
- Both at discretion of the court
ESTAFA BY POST-DATING VS. ISSUING A WORTHLESS CHECK: Good Faith as a defense
ESTAFA: Good Faith is a valid defense in Estafa
BP BLG. 22: Good faith is not a valid defense
ESTAFA BY POST-DATING VS. ISSUING A WORTHLESS CHECK: Payment of a pre-existing obligation
ESTAFA: if payment is made for a pre-existing obligation, no deceit involved therefore no crime exists.
BP BLG. 22: Even if issued to pre-existing obligation there can still be a liability
ESTAFA BY POST-DATING VS. ISSUING A WORTHLESS CHECK: Issuing a worthless check
ESTAFA: May be committed by merely issuing a check
BP BLG. 22: Requires the accused both drew and issued the check
ESTAFA BY POST-DATING VS. ISSUING A WORTHLESS CHECK: Period to make good the check
ESTAFA: 3 days
BP BLG. 22: 5 banking days
