AN ACT PENALIZING THE MAKING OR DRAWING AND ISSUANCE OF A CHECK WITHOUT SUFFICIENT FUNDS OR CREDIT AND FOR OTHER PURPOSES.

• Number: Batas Pambansa Blg. 22
• Sections: 7

Preamble

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.

SEC. 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 five (5) banking days after receiving notice that such check has not been paid by the drawee.

Section 3 Duty of drawee; rules of evidence.

SEC. 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.

SEC. 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.

SEC. 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.

Section 6 Separability clause.

SEC. 6. Separability clause.—If any separable provision of this Act be declared unconstitutional, the remaining provisions shall continue to be in force.

Section 7 Effectivity.

SEC. 7. Effectivity.—This Act shall take effect fifteen days after publication in the Official Gazette.

Approved, April 3, 1979.