Introduction

- The Bouncing Checks Law, also known as Batas Pambansa Bilang 22, is an act that
penalizes the making or drawing and issuance of a check without sufficient funds or
credit. Enacted on April 3, 1979, the law aims to protect the integrity of commercial
transactions by holding accountable those who issue checks without the necessary funds
to cover them. Its purpose is to deter the practice of issuing bad checks and promote
financial responsibility among individuals and businesses.
Definition
- Bouncing checks refer to checks that are issued by a person without sufficient funds in
their bank account to cover the amount indicated on the check, or checks that are
dishonored by the bank for any reason. The Bouncing Checks Law, or Batas Pambansa
Bilang 22, was enacted in the Philippines in 1979 to penalize the making or drawing and
issuance of a check without sufficient funds or credit, and for other purposes.

Sections
Section 1: This section states that any person who issues a check without sufficient funds or
credit to cover the amount, knowing that it will not be honored upon presentment, shall be
punished by imprisonment of not less than 30 days but not more than one year or by a fine of not
less than but not more than double the amount of the check, which fine shall not exceed Two
Hundred Thousand Pesos, or both.
Section 2: This section explains that the act of issuing a check that is subsequently dishonored by
the bank due to insufficient funds or credit shall be considered prima facie evidence of
knowledge of such insufficiency, unless the maker or drawer pays the holder the amount due
within five banking days after receiving notice of the dishonor.
Section 3: This section imposes a duty on the drawee of any check, when refusing to pay the
same to the holder thereof upon presentment, to indicate the reason for dishonor or refusal in
plain language, written, printed or stamped on the check or attached thereto. This shall be
considered prima facie evidence of the making or issuance of the check, the presentment and
dishonor thereof, and that it was properly dishonored for the reason written, stamped, or attached
by the drawee on such dishonored check.
Section 4: This section defines the term "credit" as an arrangement or understanding with the
bank for the payment of such check.
Section 5: This section specifies that prosecution under this Act shall be without prejudice to any
liability for violation of any provision of the Revised Penal Code.
Section 6: This section contains a separability clause which states that if any provision of the Act
is declared unconstitutional, the remaining provisions shall continue to be in force.
Section 7: This section specifies that the Act shall take effect fifteen days after publication in the
Official Gazette.

Penalties/Violations
 Imprisonment of not less than 30 days but not more than 1 year
 Fine of not less than but not more than double the amount of the check, which shall not
exceed PHP 200,000
 Both fine and imprisonment at the discretion of the court
 Prima facie evidence of knowledge of insufficient funds, which may lead to conviction
 Liability of signatories of the check in behalf of a corporation, company or entity
 Duty of drawee to write, print or stamp the reason for dishonor or refusal to pay the check
 Prosecution without prejudice to any liability for violation of any provision of the
Revised Penal Code
Jurisdiction/Venue
 Cases involving violations of the Bouncing Checks Law fall within the jurisdiction of
metropolitan or municipal trial courts, regardless of the amount involved.
 Regional trial courts have jurisdiction over bouncing checks cases where the amount
involved exceeds Php 300,000.
 The Sandiganbayan has jurisdiction over bouncing checks cases committed by public
officials and employees.
Venue:
 The criminal action for violations of the Bouncing Checks Law shall be instituted in the
regional trial court or in the metropolitan or municipal trial court in the province or city
where the check was dishonored.
 In cases where the check was dishonored outside the territorial jurisdiction of the said
courts, the criminal action may be filed in the court of the place where the check was
actually issued or where any of its essential elements occurred.
Defenses available to those charged with bouncing checks:
 Payment or Satisfaction - This defense can be used if the accused has already paid the
amount indicated on the bounced check to the payee or has made arrangements for the
payment in full by the drawee of such check within five banking days after receiving
notice that such check has not been paid by the drawee.
 Lack of knowledge of insufficient funds - This defense can be used if the accused did not
know at the time of issue that they did not have sufficient funds in or credit with the
drawee bank for the payment of such check in full upon its presentment.
 Post-dated check - This defense can be used if the check is post-dated and the payee
presented it for payment before the date indicated on the check.
  Forgery or material alteration - This defense can be used if the accused did not issue the
bounced check, or if the check was materially altered without their knowledge and
consent.

 Valid reasons for stopping payment - This defense can be used if the accused ordered the
bank to stop payment due to valid reasons such as loss or theft of the check.
It is important to note that for these defenses to be considered valid, the accused must provide
proof or evidence to support their claim. Additionally, the burden of proof lies on the accused to
prove their innocence, and not on the prosecution to prove their guilt.

Tips on How to Avoid Bouncing Checks

 Keep track of your account balance and expenses.
 Always make sure that you have sufficient funds in your account before issuing a check.
 Use online banking or mobile apps to monitor your account balance.
 Set up alerts for low balance and overdrafts.
 Avoid post-dated checks.
 Consider using other payment methods such as cash or credit cards.
 Communicate with your payees and make arrangements for payment if you anticipate a
shortfall in funds.
 If you're unsure whether you have sufficient funds, don't issue the check.
 If you're experiencing financial difficulties, consider seeking financial assistance or
restructuring your debts to avoid bouncing checks

Conclusion
The Bouncing Checks Law aims to prevent and punish the issuance of dishonored
checks. Violating this law can result in serious penalties, including imprisonment and fines.
However, there are various defenses available to those charged with bouncing checks, such as
lack of knowledge or mistake in the check amount. To avoid bouncing checks, it is essential to
maintain sufficient funds in the account, keep track of check issuances, and ensure the accuracy
of the check details. It is crucial to comply with the Bouncing Checks Law to maintain the
integrity of financial transactions and protect the rights of parties involved. Let us be responsible
and conscientious in issuing checks to avoid any violations of the law.