The CHECK issued to me BOUNCED! What do I do?
The evolution of financial instruments over the years has brought about the accepted practice of the issuance of checks. For expediency, most entity (whether individual or corporate) utilize the drawing, making, issuing, or accepting of checks. Despite such convenience, there is still the risk of issuing and/or receiving checks especially when these checks turn out to be unfunded.
Ever wonder what your legal remedy is if the check paid/endorsed to you bounced? If yes, then read on.
A victim of a bounced check may avail of the remedies provided in Batas Pambansa Blg. 22 (“B.P. 22”).
B.P. 22 punishes the making or drawing or issuing of a check, when upon deposit within ninety (90) days from the date of the check, the same shall either:
- Bounce for insufficiency of funds or for drawing the check on a closed account, or
- Would have been dishonored (for insufficiency of funds or drawn upon closed account) had not the issuer or drawer ordered the bank to stop payment for no valid reason.
It must be noted that the case for B.P. 22 must be filed within four (4) years from the deposit of the bounced check. Otherwise, only a civil action may be filed against the drawer, maker, or issuer of the check, if the circumstances so allow.
In order for a person to be liable for BP 22, the elements are as follows:
- The making, drawing, and issuance of any check to apply on account or for value ;
- The knowledge of the maker, drawer, or issuer that at the time of issue, he or she does not have sufficient funds in or credit with the drawee bank for the payment of the check in full upon its presentment; and,
- The subsequent dishonor of the check by the drawee bank for insufficiency of funds or credit or for drawing on a closed account or dishonor for the same reason had not the drawer, without any valid cause, ordered the bank to stop payment.
It is presumed that the issuer knew of the insufficiency of funds if the check is dishonored within ninety (90) days from the date of the check unless the issuer pays the full amount of the check within five (5) days from receipt of the notice of dishonor.
What is the penalty for a person found guilty of B.P. 22?
The penalty for the violation of B.P. 22 is imprisonment of at least thirty (30) days but not more than one (1) year, or a fine of at least double the amount of the check but not to exceed Philippine Peso: Two Hundred Thousand (PHP 200,000.00).
In imposing a penalty for B.P. 22, the Supreme Court has, in innumerable instances, merely imposed a penalty of fine if such a sentence would serve the interest of justice better. Nevertheless, if the Accused cannot satisfy the fine imposed, the latter may suffer subsidiary imprisonment at the rate of one day for each eight pesos of the unpaid fine.
Am I precluded from filing a case for Estafa if I already filed a case for B.P. 22 against the issuer of the same bounced check?
No. B.P. 22 punishes the act of making, drawing, or issuing a worthless check regardless of the intent of the maker, drawer, or issuer of the check. On the other hand, in Estafa cases, fraud should be present at the time of issuance of the bounced check. Hence, having different elements, a case for Estafa may be filed even when a case for B.P. 22 has already been lodged concerning the same bouncing check.
If I did not receive any goods in exchange for the issuance of the check as I was merely an accommodation party, am I still liable for B.P. 22?
Yes. The evil that is sought to be avoided by B.P. 22 is the circulation of worthless checks. This is so regardless of whether or not the issuer of the check received anything of value in exchange.
If the drawer of the bouncing check is a corporation, who can I hold liable for the violation of B.P. 22?
The law provides that if the bouncing check is drawn on the account of the corporation, the person or persons who actually signed the check on behalf of such drawer shall be liable for the violation of B.P. 22.
Source: https://ndvlaw.com/de-mystifying-the-bouncing-checks-law-b-p-22/
