BOUNCING CHECKS LAW (B.P. Blg.

22)  Knowledge by the maker, drawer, or

Purpose issuer that at the time of issuance there
 prevent damage to trade/Businesses. is insufficiency of funds.
 prevent build-up of worthless checks.
 safeguard the interest of the public Knowledge of insufficiency
banking system of the country.  If check is presented within 90 days
from the date and there was
Nature of offense insufficiency then it shall be
 criminal, mallum prohibitum, which considered as evidence of such
means to punish one so others may be knowledge of insufficiency.
deterred from doing the same
act/crime. Presumption of knowledge
 If after notice of dishonor, there has
2 Types of offenses covered by law been no action by the maker, drawer, or
1. Issuance of a check with sufficient funds issuer within 5 days then it shall be
but was unable to keep the sufficiency. presumed that there was knowledge
2. Issuance of a check with knowledge that thereof.
there is insufficiency.
Necessity of notice of dishonor
When endorser liable under B.P. Blg. 22  Necessary to hold the drawer liable and
 a general endorser who indorses the must be written in form.
check due to his warranty that the
instrument is genuine and in all Post-dated checks
respects what it purports to be.  Deemed issued at the time of issuance
but is not considered dishonored if
Foreign Checks presented before due date.
 Drawn or issued within the Philippines
even if payable outside. Payment within 5-day period
 Place of issuance of check is the basis.  Discharges the check if, within 5 banking
days of notice of dishonor, the check
Elements of Offense was paid or settled.
 Check is dishonoured
 Making, drawing, and issuance of any Payment as valid defense under B.P. 22
check to apply on account for value  Payment discharges the instrument, in
this case, the check.
Conviction for issuance of bouncing check
 Imprisonment of 30 days to 2 years
and/or a fine of double the amount of
the check.