Anti Bouncing Checks Law

Question 1

Batas Pambansa Bilang 22

Answer 1

Anti-Bouncing Checks Law

An Act Penalizing the Making or Drawing, and Issuance of Checks Without Sufficient Funds or Credit and For Other Purposes.

Question 2

Requisites to be liable under Batas Pambansa Bilang 22

Answer 2

1. The making or drawing, and issuance of checks without sufficient funds.
2. Knowledge of the maker, drawer, or issuer of the check that at the time of issuance he does not have sufficient funds.
3. Subsequent dishonor of the check by the drawee bank for insufficiency of funds, or would have been dishonored for the same reason if had not the drawer, without valid reason, order the drawee bank to stop payment .

; or also

4. Having sufficient funds or credit with the drawee bank upon the issuance of the check but fails to maintain a credit to cover the full amount of the check.

Question 3

Prima facie evidence of knowledge of insufficiency of funds

Answer 3

When the check was presented for payment within 90 days from the date of the check .

Question 3

Penalties under B.P. 22

Answer 3

Fine - not less than but not more than the double amount of the check, but which should not exceed PHP 200,000

Imprisonment - not less than 30 days but not more than 1 year

;or both upon the discretion of the court

Question 4

Valid defense of the issuer of the check to be not liable under B.P. 22

Answer 4

If the issuer of the check pays the holder the amount due or makes arrangements in full by the drawee of the check within 5 banking days after receiving the notice of dishonor.

Question 5

B.P. 22 Section 3. Duty of Drawee

Answer 5

It shall be the duty of the drawee of any check, when refusing to pay the same to the holder upon presentment, the cause to be written or stamped in plain language, the reason for drawee’s dishonor or refusal to pay the same. Provided, that where there are no sufficient funds in or credit with such drawee bank, such fact shall always be explicitly stated in the notice of dishonor or refusal.