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Batas Pambansa BLG 22

The document is an Act that penalizes issuing checks without sufficient funds in the Philippines. It outlines three key points: 1) It is illegal to issue a check knowing there are insufficient funds to cover it, and doing so can result in fines or imprisonment. 2) If a check is dishonored due to insufficient funds, that is considered evidence the issuer knew of the lack of funds unless they address the issue within 5 days. 3) When refusing a check for insufficient funds, the bank must state that as the reason in writing on the check. Presenting a refused check with that reason written is considered evidence that the rules were broken.

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292 views1 page

Batas Pambansa BLG 22

The document is an Act that penalizes issuing checks without sufficient funds in the Philippines. It outlines three key points: 1) It is illegal to issue a check knowing there are insufficient funds to cover it, and doing so can result in fines or imprisonment. 2) If a check is dishonored due to insufficient funds, that is considered evidence the issuer knew of the lack of funds unless they address the issue within 5 days. 3) When refusing a check for insufficient funds, the bank must state that as the reason in writing on the check. Presenting a refused check with that reason written is considered evidence that the rules were broken.

Uploaded by

Diazmean Sotelo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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BATAS PAMBANSA BLG.

22 with such bank, when presented within ninety (90) days from the
date of the check, shall be prima facie evidence of knowledge of
AN ACT PENALIZING THE MAKING OR DRAWING such insufficiency of funds or credit unless such maker or drawer
AND ISSUANCE OF A CHECK WITHOUT SUFFICIENT pays the holder thereof the amount due thereon, or makes
FUNDS OR CREDIT AND FOR OTHER PURPOSES. arrangements for payment in full by the drawee of such check
within (5) banking days after receiving notice that such check has
Section 1. Checks without sufficient funds. - Any person who not been paid by the drawee.
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 Section 3. Duty of drawee; rules of evidence. - It shall be the duty
sufficient funds in or credit with the drawee bank for the payment of the drawee of any check, when refusing to pay the same to the
of such check in full upon its presentment, which check is holder thereof upon presentment, to cause to be written, printed,
subsequently dishonored by the drawee bank for insufficiency of or stamped in plain language thereon, or attached thereto, the
funds or credit or would have been dishonored for the same reason for drawee's dishonor or refusal to pay the same: Provided,
reason had not the drawer, without any valid reason, ordered the That where there are no sufficient funds in or credit with such
bank to stop payment, shall be punished by imprisonment of not drawee bank, such fact shall always be explicitly stated in the
less than thirty days but not more than one (1) year or by a fine of notice of dishonor or refusal. In all prosecutions under this Act,
not less than but not more than double the amount of the check the introduction in evidence of any unpaid and dishonored check,
which fine shall in no case exceed Two Hundred Thousand Pesos, having the drawee's refusal to pay stamped or written thereon or
or both such fine and imprisonment at the discretion of the court. attached thereto, with the reason therefor as aforesaid, shall be
prima facie evidence of the making or issuance of said check, and
The same penalty shall be imposed upon any person who, having the due presentment to the drawee for payment and the dishonor
sufficient funds in or credit with the drawee bank when he makes thereof, and that the same was properly dishonored for the reason
or draws and issues a check, shall fail to keep sufficient funds or written, stamped or attached by the drawee on such dishonored
to maintain a credit to cover the full amount of the check if check.
presented within a period of ninety (90) days from the date
appearing thereon, for which reason it is dishonored by the Notwithstanding receipt of an order to stop payment, the drawee
drawee bank. shall state in the notice that there were no sufficient funds in or
credit with such bank for the payment in full of such check, if
Where the check is drawn by a corporation, company or entity, such be the fact.
the person or persons who actually signed the check in behalf of
such drawer shall be liable under this Act. Section 4. Credit construed. - The word "credit" as used herein
shall be construed to mean an arrangement or understanding with
Section 2. Evidence of knowledge of insufficient funds. - The the bank for the payment of such check.
making, drawing and issuance of a check payment of which is
refused by the drawee because of insufficient funds in or credit Approved: April 3, 1979.

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