Blog Lecture No. 42: Bouncing Checks
For today, let's discuss what the government, thanks to the massive deals brought about by last weeks' fiasco, is now vulnerable to.
The law on bouncing checks can be found in Batas Pambansa Blg. (National Law No. 22). It states:
What are the acts punished under this law?
1. Drawing and issuing any check to apply on account or for value, knowing at the time of issue that he does not have sufficient funds, then the check bounced.
Here, the person issued the check to pay for something, knowing fully well that he has no sufficient funds to cover the issued check. As a separate crime, this likewise constitutes estafa under Article 315 (2) (d) of the Revised Penal Code.
2. Failing to keep sufficient funds or to maintain a credit to cover the full amount of the check if presented within a period of ninety (90) days from the date appearing thereon, but at the time of issuance, there were sufficient funds.
Here, the issued check initially can be covered with sufficient bank funds. But when encashed within 90 days from the date in the check, it bounced. Here the offender is punished for failing to maintain sufficient funds and not for issuing an empty check per se.
Who are the one punished under this law?
1. Any person who draws or issues the bum check
2. If the check is drawn by a corporation, company or entity, the person or persons who actually signed the check in behalf of such drawer. This includes government checks.
What are some of the defenses for this offense?
They are:
1. Prescription (simply means the expiration of the right to prosecute the offense)
Here the prescription period if four years from five-day notice of dishonor (notice to drawer that the check bounced and giving him/her 5 days to make good the check) (Act 3326, as amended)
2. Payment within the five day notice of dishonor
Breakfast time!
The law on bouncing checks can be found in Batas Pambansa Blg. (National Law No. 22). It states:
Any person who 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 sufficient funds in or credit with the drawee bank for the payment of such check in full upon its presentment, which check is subsequently dishonored by the drawee bank for insufficiency of funds or credit or would have been dishonored for the same reason had not the drawer, without any valid reason, ordered the bank to stop payment, shall be punished by imprisonment of not less than thirty days but not more than one (1) year or by a fine of not less than but not more than double the amount of the check which fine shall in no case exceed Two Hundred Thousand Pesos, or both such fine and imprisonment at the discretion of the court.
The same penalty shall be imposed upon any person who, having sufficient funds in or credit with the drawee bank when he makes or draws and issues a check, shall fail to keep sufficient funds or to maintain a credit to cover the full amount of the check if presented within a period of ninety (90) days from the date appearing thereon, for which reason it is dishonored by the drawee bank.
Where the check is drawn by a corporation, company or entity, the person or persons who actually signed the check in behalf of such drawer shall be liable under this Act.
What are the acts punished under this law?
1. Drawing and issuing any check to apply on account or for value, knowing at the time of issue that he does not have sufficient funds, then the check bounced.
Here, the person issued the check to pay for something, knowing fully well that he has no sufficient funds to cover the issued check. As a separate crime, this likewise constitutes estafa under Article 315 (2) (d) of the Revised Penal Code.
2. Failing to keep sufficient funds or to maintain a credit to cover the full amount of the check if presented within a period of ninety (90) days from the date appearing thereon, but at the time of issuance, there were sufficient funds.
Here, the issued check initially can be covered with sufficient bank funds. But when encashed within 90 days from the date in the check, it bounced. Here the offender is punished for failing to maintain sufficient funds and not for issuing an empty check per se.
Who are the one punished under this law?
1. Any person who draws or issues the bum check
2. If the check is drawn by a corporation, company or entity, the person or persons who actually signed the check in behalf of such drawer. This includes government checks.
What are some of the defenses for this offense?
They are:
1. Prescription (simply means the expiration of the right to prosecute the offense)
Here the prescription period if four years from five-day notice of dishonor (notice to drawer that the check bounced and giving him/her 5 days to make good the check) (Act 3326, as amended)
2. Payment within the five day notice of dishonor
Breakfast time!
transcription by Punzi @ 7:48 AM
24 Objection(s):
Prof. Punzi,
I heard there is a new jurisprudence in B. P. Blg. 22 called the Betty King case wherein it stated that the demand letter must be personally received by the accused. Otherwise, the case can be dismissed.
I used to handle BP 22 cases but since it has lost much of its teeth, I do not handle them anymore and am no longer updated with its jurisprudence. Is that the import of the Betty King case?
Thanks for the lecture.
What other loopholes are there in BP 22?
Atty. Lacierda,
I was supposed to include that case here, but I decided not to. I wanted to hold back so I can still earn a living...heheheheh!
But since you already put it there... ok na rin...
Muntikan na akong ma-BP22 minsan. Hindi ko nahabol on time ang pondo sa cheke na inisyu ko.Sa susunod kung mangyari ulit sa akin, i'll contact you atty. ok lang?
ahh bouncing checks are tricky! Does that mean the accused should get a letter of demand for payment from the accuser when the check bounces. If not , the case will be dismissed?
@Sam: No prob.
@Duke: If that fact is apparent after trial, the case will be dismissed and you cannot refile because of double jeopardy.
If it is still in the early stages, you can still remedy the situation by having the demand letter personally received.
Hi, just want to know some comments on my situation re: BP22.
I was annulled and separated with my daughter, and i am giving my monthly support thru my mother-in- law via checks (10K monthly), first i was able to provide for the said amount but after sometime i have problems funding the checks. Now, my mother-in-law sue me for BP22. Initially she treatens to sue me and i told her i'll just come up with amount (120K)and for now i'll just pay half the amount but she insist to have the full amount and don't want any other options. Can you please tell how can I managed to work with this issue. I'm willing to pay of course esp. it's for my daughter but my former mother-in-law is giving a hard time with this. please help.
Technically, your mother in law has a point and she can collect from you the whole amount and threaten you with a BP 22 case.
Second, since you withheld support for your child you may even be held liable for child abuse. And if you have a court case for that support, you may also be liable for contempt of court.
Since it's for your child anyway, I suggest that you swallow up and pay. It's for your child anyway.
Sorry to be so harsh but it's not like you owe money for some trivial reason. You daughter needs support. Pay up, man!
Hi Atty, Thanks for the reply. I understand your concern about paying--it's so happen that the big picture before I ended up missing the funds since I came from annulment which i paid although they are the one who initiated it, and yup, i have been sued also for child abuse 2 years ago and able to settle by providing more than 400K for all the dues. the problem is i'm just an ordinary employee having paid those amount for the last two years was not easy, thus last year my finance was really bad. Anyway, one question, they also sue my mother with "obstruction of justice" for not telling where i am since they cannot locate me. (i'm not leaving with my parents). will these be dismissed also if i pay up. Note: no case yet was filed when they argued and asked my mother for my whereabouts. your thought please. thanks
hi!!!
im puzzled about this Betty King case.
nway, there is this tenant who issed several checks for payment of rentals. the check bounced- account closed. notice of dishonor cannot be served personally since the tenant absconded. what is the remedy now??? can the case for bp22 still prosper??? need your advise ASAP, if you can. thank you and good day!
You can always file an estafa case where the Betty King requisite does not apply.
We have a 2.7 million contract agreement with a mine operator, the contract date was from may 9- may 31, since they couldnt provide the minerals we ordered at the due date, we made a modification with the contract date and extended it to june 31, we already paid the total sum of 2.3 million and we asked for a post dated check with the same amount that we already gave. the check doesnt mention any particular date. so far we dont have any problem. what are the chances that the operator cant provide us our order and can he pay us back the amount through this check/ pls advise
I really cannot answer your question because it's not really a legal one. It would depend on how you know the mine operator, its credit rating, its credibility and operational history. It will also depend on your working relationship.
From: Vinsky
If someone issued you bum checks, is there any possibility that you will get paid if you are saying that alibi such as "demand letter not received" will be honored by the court?
Yes you can. While you cannot pursue the criminal aspect of the bouncing checks, there is still the civil aspect of recovery of the amount of the bounced checks.
hi punzi,
i have a loan in a bank with 3years to pay term.i made payment by depositing money on the blank checques that they gave me to sign.then i lost my job and wasn't able to pay for three months now.i went abroad to look for a job.they send an SMS to my husband,which he forwarded to me.saying that a case of bouncing check was filed against me and that i need to call them within 24 hours or else,its war.is that really how an atty should threaten anybody who failed to pay a loan?when i called,they want me to settle the full amount.i said i have no money.they said,pay at least 20k until jan.30 or else we wont put the case on hold.they told me that they will report me to DFA.what shall i do with this?is this really possible to happen?im so desperate right now,i hope God will hear my prayer that you will answer me.thank you
That's their usual modus operandi: threaten and badger you to pay up because these collection agencies are not paid until they collect. I'm not even surprised if the one tries to collect from you isn't really a lawyer. At most, he/she/it just works for one.
Just bear in mind that the last time I checked no one goes to prison because of debt, unless you issued post-dated checks. But because you really have a loan, you have to pay it eventually.
hope this helps
hi. just wanted to get your opinion. was issued post dated checks for a loan. when the 1st check was due, the guy asked for time saying there are not enough funds. i gave in. it's been a week and he hasn't responded. planning to depo the check, so i'll have something to work with. question: how much will i end up spending on lawyer fees? if court decides in my favor, will he be required to me what i was due, apart from what the court will charge with with? can it cover the legal fees i had to shell out as well?
hi. in a scenario where A issued checks to B as payment for goods and B in turn rediscounted the checks with a lending company. If the checks were subsequently returned for reasons such as DAIF or closed account, who shall then be liable with the Lending company, A or B? Can the lending company directly sue A as the issuer of the checks? tnx.
i have a china trust loan and they gave me a check to sign as my posdated check... i failed to pay them adn now they are calling me that they will move my case to court if i can't pay them... is it true.??? can they file a case to me???? will i going to be arrested???
Atty Punzi, hihingi lang po ng advice. I acquired a loan from a bank payable in 3 years. I was not able to pay for 6 mos already due to financial problems. I wasn't running away, i would just like to have some time to pay the full amount. then a certain lawyer texted me and they filed a criminal case against me, and i have to pay the full amount or they will come over and arrest me, put me in jail or something like that. My question is, is that possible? hehe..thanks po.
hi im cureently out of the country when my relative called me informing that they received letter from court about BP22, is this the first step? do i need to get a demand letter from the complainant for my payment before the court appeals? what is the best thing i can do i just started my work here and dont have enough money to pay them in full please help. thnx
darwin
i just started my work here in abroad when my parents got a letter from court BP22? right now i dont have enough money to pay all? what will i do about it since i am far, and my parent are worried because they are forcing to pay all in behalf of me? please help.
darwin
hi.:) if a lawsuit has been filed already because of bouncing checks. And then the debt is already paid. How will the lawsuit be cancelled/stopped? what are the procedures. How much would this cost. Thank you.
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