8/14/2019 Bouncing Checks Law of 1979 (BP 22)

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BATASPAMBANSABLG.22

ANACTPENALIZINGTHEMAKINGORDRAWINGANDISSUANCEOFACHECKWITHOUTSUFFICIENTFUNDSORCREDITANDFOROTHERPURPOSES.

Section1.Checkswithoutsufficientfunds.Anypersonwhomakesordrawsandissuesanychecktoapplyonaccountorforvalue,knowingatthetimeofissuethat

hedoesnothavesufficientfundsinorcreditwiththedraweebankforthepayment

ofsuchcheckinfulluponitspresentment,whichcheckissubsequentlydishonored

bythedraweebankforinsufficiencyoffundsorcreditorwouldhavebeen

dishonoredforthesamereasonhadnotthedrawer,withoutanyvalidreason,

orderedthebanktostoppayment,shallbepunishedbyimprisonmentofnotless

thanthirtydaysbutnotmorethanone(1)yearorbyafineofnotlessthanbutnot

morethandoubletheamountofthecheckwhichfineshallinnocaseexceedTwoHundredThousandPesos,orbothsuchfineandimprisonmentatthediscretionof

thecourt.

Thesamepenaltyshallbeimposeduponanypersonwho,havingsufficientfundsinorcreditwiththedraweebankwhenhemakesordrawsandissuesacheck,shall

failtokeepsufficientfundsortomaintainacredittocoverthefullamountofthecheckifpresentedwithinaperiodofninety(90)daysfromthedateappearing

thereon,forwhichreasonitisdishonoredbythedraweebank.

Wherethecheckisdrawnbyacorporation,companyorentity,thepersonor

personswhoactuallysignedthecheckinbehalfofsuchdrawershallbeliableunder

thisAct.

Sec.2.Evidenceofknowledgeofinsufficientfunds.Themaking,drawingand

issuanceofacheckpaymentofwhichisrefusedbythedraweebecauseof

insufficientfundsinorcreditwithsuchbank,whenpresentedwithinninety(90)

daysfromthedateofthecheck,shallbeprimafacieevidenceofknowledgeofsuch

insufficiencyoffundsorcreditunlesssuchmakerordrawerpaystheholderthereoftheamountduethereon,ormakesarrangementsforpaymentinfullbythedrawee

ofsuchcheckwithin(5)bankingdaysafterreceivingnoticethatsuchcheckhasnot

beenpaidbythedrawee.

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Sec.3.Dutyofdrawee;rulesofevidence.Itshallbethedutyofthedraweeofany

check,whenrefusingtopaythesametotheholderthereofuponpresentment,tocausetobewritten,printed,orstampedinplainlanguagethereon,orattached

thereto,thereasonfordrawee'sdishonororrefusaltopaythesame:Provided,That

wheretherearenosufficientfundsinorcreditwithsuchdraweebank,suchfact

shallalwaysbeexplicitlystatedinthenoticeofdishonororrefusal.InallprosecutionsunderthisAct,theintroductioninevidenceofanyunpaidanddishonoredcheck,havingthedrawee'srefusaltopaystampedorwrittenthereonor

attachedthereto,withthereasonthereforasaforesaid,shallbeprimafacieevidence

ofthemakingorissuanceofsaidcheck,andtheduepresentmenttothedraweefor

paymentandthedishonorthereof,andthatthesamewasproperlydishonoredfor

thereasonwritten,stampedorattachedbythedraweeonsuchdishonoredcheck.

Notwithstandingreceiptofanordertostoppayment,thedraweeshallstateinthe

noticethattherewerenosufficientfundsinorcreditwithsuchbankforthe

paymentinfullofsuchcheck,ifsuchbethefact.

Sec.4.Creditconstrued.Theword"credit"asusedhereinshallbeconstruedto

meananarrangementorunderstandingwiththebankforthepaymentofsuch

check.

Sec.5.LiabilityundertheRevisedPenalCode.ProsecutionunderthisActshallbe

withoutprejudicetoanyliabilityforviolationofanyprovisionoftheRevisedPenal

Code.

Sec.6.Separabilityclause.IfanyseparableprovisionofthisActbedeclared

unconstitutional,theremainingprovisionsshallcontinuetobeinforce.

Sec.7.Effectivity.ThisActshalltakeeffectfifteendaysafterpublicationinthe

OfficialGazette.

Approved:April3,1979.