LAW ON BOUNCING CHECKS SUMMARY

Liabilities for Violation of B.P. 22

Situation 1: I issued a check, thinking that I had sufficient funds. The person I issued the check to did not inform
me that the check bounced.

If a case is filed against me, will it prosper? NO.

To be liable under B.P . 22, it must be established that the check was issued and that it was dishonored. It must
also be shown that you, the accused, knew that when you issued the check, the account will not be sufficiently
funded upon presentment of the check to the bank.

How can I be made liable under B.P. 22?

For a B.P . 22 case to prosper, the following should be sufficiently established:
1. A check was issued;
2. 2. At the time of issue, the person who issued the check knew that there would not be sufficient funds if
the check is presented to the bank;
3. 3. The check is dishonored.

How can the complainant prove that I knew (2nd element)?

Notice of Dishonor
The complainant will sent you a notice of dishonor to prove that you were aware that you had
insufficient funds and that the bank dishonored your check. This notice creates the presumption that you knew
about the insufficiency.

Who can give valid notice of dishonor?

The notice of dishonor may be given by:
A. the one you issued the check to; or
B. the bank.
Note! This should be written notice or at least clear proof of notice. Remember that this is a criminal case and
the guilt should be established beyond reasonable doubt.

What if notice was really given?

The law gives you five (5) banking days after receiving the notice of dishonor to fund the check or make
arrangements for the payment.
(Banking Days = Monday to Friday)

What else should we remember?

Even if the criminal case will not prosper, you may still be held liable for the civil aspect. This means that
you have to pay the person you issued the check to – usually with legal interest and other interests that the
Court may impose.