Crimes Against Property

BATAS PAMBANSA BILANG 22 (BP 22)

Check is a bill of exchange issued by a drawer ordering the drawee bank to pay the payee named
in the check a certain amount either payable to bearer or order. It is a substitute for money to
pay an obligation incurred.

BP 22 punishes a person for issuing a worthless check. A check is obviously worthless when, at
the time it is cashed for payment, which must be within ninety days from issuance, it is
dishonored by the issuing bank because of insufficient funds, or even when the account against
which the check was drawn was already closed.

In any of these cases, the issuer of the check commits a violation of BP 22, and may be held
liable for imprisonment of thirty days to one year or a fine a double the value of the check or
both at the discretion of the court. Moreover, the issuer of the check may also be liable for
imprisonment, even if only a fine is imposed by the court, if the issuer has no sufficient property
to pay the fine imposed, in which case he or she shall be liable to serve a prison term at the rate
of one day for each eight pesos of the unpaid fine.

Another manner in which a person becomes liable under BP 22 is when the issuer orders his or
her bank to make a stop payment of the check without any valid reason and the check would
have been dishonored for insufficiency of funds had it not been for the stop payment order given
by the issuer.

It must also be remembered that prosecution under BP 22 is not a bar for prosecution for Estafa,
and the issuer of the check may be held liable for one or both crimes, singly or simultaneously
when the complaints are filed in separate courts.

Note: Recovery from civil action arising from BP 22 precludes recovery from the corresponding
civil action arising from estafa. Double recovery is not allowed by law.

Section 1. Checks without sufficient funds. - 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.

Section 2. Evidence of knowledge of insufficient funds. - The making, drawing and issuance of a
check payment of which is refused by the drawee because of insufficient funds in or credit with
such bank, when presented within ninety (90) days from the date of the check, shall be prima
facie evidence of knowledge of such insufficiency of funds or credit unless such maker or
drawer pays the holder thereof the amount due thereon, or makes arrangements for payment in
full by the drawee of such check within (5) banking days after receiving notice that such
check has not been paid by the drawee.

Section 3. Duty of drawee; rules of evidence. - It shall be the duty of the drawee of any check,
when refusing to pay the same to the holder thereof upon presentment, to cause to be written,
printed, or stamped in plain language thereon, or attached thereto, the reason for drawee's
dishonor or refusal to pay the same: Provided, That where there are no sufficient funds in or
credit with such drawee bank, such fact shall always be explicitly stated in the notice of dishonor
or refusal. In all prosecutions under this Act, the introduction in evidence of any unpaid and
dishonored check, having the drawee's refusal to pay stamped or written thereon or attached
thereto, with the reason therefor as aforesaid, shall be prima facie evidence of the making or
issuance of said check, and the due presentment to the drawee for payment and the dishonor
thereof, and that the same was properly dishonored for the reason written, stamped or attached
by the drawee on such dishonored check.

Notwithstanding receipt of an order to stop payment, the drawee 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
such be the fact.

Section 4. Credit construed. - The word "credit" as used herein shall be construed to mean an
arrangement or understanding with the bank for the payment of such check.

Section 5. Liability under the Revised Penal Code. - Prosecution under this Act shall be without
prejudice to any liability for violation of any provision of the Revised Penal Code.

But the issuer of the check is not left with remedies. Our Supreme Court has sanctioned
numerous defenses which have acquitted individuals charged with a violation of BP 22. Possible
defenses in an indictment include:

1) payment of the value of the dishonored check within five banking days from receipt of the
notice of dishonor;
2) payment of the value of the check before filing of the criminal case in court;
3) failure to serve a written notice of dishonor of the check to the issuer;
4) novation or change in the underlying obligation of the parties before the filing of the criminal
case in court;
5) a stop payment order pursuant to a valid reason such as non-delivery of goods or services; and
6) knowledge by the payee that the check was not supported by sufficient funds when the issuer
issued the check.

Prescriptive period in filing BP 22: 4 years from the presentation of the check for payment.

SC AC 12-2000- preference in the imposition of fine in case of good faith or clear mistake of
fact without taint of negligence.

ART. 315 OF THE REVISED PENAL CODE- ESTAFA

The main crime involving fraud in the Philippines is "swindling" (estafa), which is punishable
under Article 315 of the Penal Code. This offence involves defrauding another through the
means of (among others):

 Misappropriating or converting to the prejudice of another, money, goods or other

personal property received by the offender in trust or commission, or for administration
or under any other obligation involving the duty to deliver or return such
money/goods/property.
 Taking undue advantage of the signature of the offended party in blank, and by writing
any document above such signature in blank, to the prejudice of another (forgery).
 Using a fictitious name, or falsely pretending to possess qualifications, property, credit,
agency, business or imaginary transactions, or by means of other similar deceits.

Swindling or estafa is a crime against property and it is committed using any fraudulent means.
Swindling is also an abuse of confidence and there are many ways this crime is committed:

ARTICLE 316. Other Forms of Swindling. — The penalty of arresto mayor in its minimum and
medium periods and a fine of not less than the value of the damage caused and not more than
three times such value, shall be imposed upon:

1. Any person who, pretending to be the owner of any real property, shall convey, sell, encumber
or mortgage the same.

2. Any person who, knowing that real property is encumbered, shall dispose of the same,
although such encumbrance be not recorded.

3. The owner of any personal property who shall wrongfully take it from its lawful possessor, to
the prejudice of the latter or any third person.

4. Any person who, to the prejudice of another, shall execute any fictitious contract.

5. Any person who shall accept any compensation given him under the belief that it was in
payment of services rendered or labor performed by him, when in fact he did not actually
perform such services or labor.
6. Any person who, while being a surety in a bond given in a criminal or civil action, without
express authority from the court or before the cancellation of his bond or before being relieved
from the obligation contracted by him, shall sell, mortgage, or, in any other manner, encumber
the real property or properties with which he guaranteed the fulfillment of such obligation.

ARTICLE 317. Swindling a Minor. — Any person who, taking advantage of the inexperience or
emotions or feelings of a minor, to his detriment, shall induce him to assume any obligation or to
give any release or execute a transfer of any property right in consideration of some loan of
money, credit or other personal property, whether the loan clearly appears in the document or is
shown in any other form, shall suffer the penalty of arresto mayor and a fine of a sum ranging
from 10 to 50 per cent of the value of the obligation contracted by the minor.

ARTICLE 318. Other Deceits. — The penalty of arresto mayor and a fine of not less than the
amount of the damage caused and not more than twice such amount shall be imposed upon any
person who shall defraud or damage another by any other deceit not mentioned in the preceding
articles of this chapter.

Any person who, for profit or gain, shall interpret dreams, make forecasts, tell fortunes, or take
advantage of the credulity of the public in any other similar manner, shall suffer the penalty of
arresto menor or a fine not exceeding 200 pesos.