AMA Education System

ACLC College Tacloban Branch

Real and M. H. Del Pilar St. Tacloban City

PRELIMINARY EXAMINATION IN MONETARY POLICY AND CENTRAL BANKING

Direction: Write your answers in a yellow paper.

1. It means an arrangement or understanding with the bank for the payment of such
check.
2. How much is the fine imposed to any person who makes and issues any check for value
with insufficient funds?
3. When is the making, drawing and issuance of a check out of insufficient fund presented
to be deemed as a prima facie evidence of knowledge of such insufficiency of funds or
credit?
4. Who has the duty to write, print or stamp in plain language the reason for drawee’s
dishonor or refusal to pay a check, when he refuses to pay the check upon
presentment?
5. For how long is the imprisonment imposed to any person who makes and issues any
check for value with insufficient funds?
6. Who shall be liable for a check drawn by the corporation?
7. A penalty is imposed upon a person who, having no sufficient funds, issues a check if he
fails to keep sufficient to cover up the full amount of the check within what period?
8. A maker or drawee who makes arrangements for payment in full by the drawee of a
check within _______ that such check has not been paid by the drawee, is not an
evidence of insufficiency of funds.

Direction: Read the case carefully and answer the question with legal basis.
On June 1, Patrick went to Raymond’s house and asked if he could lend him P100,000
payable on July 1, 2013. As evidence of this loan, Raymond required Patrick to issue a check to
which Patrick complied. Check No. 123456 was issued on July 12, 2013.
Raymond demanded payment but Patrick refused. Raymond deposited on his account
but after three (3) days check was returned to him – “ACCOUNT CLOSED”.
On July 15, 2013, Raymond initiated a criminal complaint against Patrick before the
Office of the Provincial Prosecutor of Dagupan.
Can Patrick be held liable in violation of Sec. 1 of BP Blg 22 for his nonpayment of
obligation?