BP 22 Bouncing Checks Law Explained: Requirements, Defenses, and Penalties (Philippine Context)

Batas Pambansa Blg. 22 (BP 22), commonly known as the Bouncing Checks Law, penalizes the issuance of worthless checks. It is a malum prohibitum statute: the act of issuing a check that bounces is punishable regardless of intent to defraud. The law’s purpose is to protect the integrity of checks as substitutes for cash and to maintain confidence in commercial transactions.

What BP 22 Punishes

BP 22 penalizes any person who makes, draws, and issues a check to apply on account or for value, knowing at the time of issuance that there are insufficient funds or credit with the drawee bank for full payment upon presentment, and the check is dishonored for insufficiency of funds or credit. It likewise covers cases where the drawer orders a stop payment without any valid reason and the check would have been dishonored for insufficiency had it been presented.

“Credit” means a bank arrangement (e.g., overdraft line) by which the drawee would honor the check even if the drawer’s ledger balance is short.

Elements of the Offense

Prosecution must establish all of the following:

Making, drawing, and issuance of a check to apply on account or for value (including for a pre-existing obligation or as “security”).
Knowledge by the issuer, at the time of issuance, of insufficient funds or credit.
Presentment within 90 days from the date of the check.
Dishonor by the bank due to insufficiency of funds or credit (or a stop-payment order without valid reason).
Failure to make good the amount within five (5) banking days after receipt of written notice of dishonor from the bank and/or the payee/holder.

The statutory presumption of knowledge

Dishonor for insufficiency plus failure to pay or arrange full payment within five banking days from receipt of written notice of dishonor creates a prima facie presumption that the drawer knew of the insufficiency when the check was issued.

The Central Role of Written Notice of Dishonor

Written notice to the drawer is essential; it may come from the bank or the payee/holder.
The prosecution must prove the drawer’s actual receipt (e.g., registry return card, courier proof, personal service, or proof of deliberate refusal).
The five banking days to make good begin upon receipt of this written notice.
Without proof of proper notice (and lapse of the 5-banking-day period), a BP 22 case ordinarily fails.

What Counts as “Dishonor” Under BP 22

DAIF/NSF: Drawn Against Insufficient Funds / Non-Sufficient Funds → squarely covered.
Account Closed: Treated as equivalent to insufficiency. Notice is still required to give the 5-day window.
Stop Payment: Covered only if without valid reason. Valid reasons can include loss/theft/forgery/material alteration.
Other bank reasons (e.g., signature differs, irregular/altered check, post-dated presented ahead of date, stale check, “uncollected deposits”) may not satisfy BP 22’s “insufficiency” requirement.

Penalties

At the court’s discretion (per check):

Imprisonment: 30 days to 1 year, or
Fine: up to double the amount of the check, capped at ₱200,000, or
Both fine and imprisonment.

Courts are authorized to impose fine alone in appropriate cases; doing so does not decriminalize BP 22. Each check is a separate count with its own penalty.

Civil liability remains

Conviction (or even dismissal after payment) does not erase the underlying civil obligation. Courts may award the amount of the check, plus legal interest, damages, and costs.

BP 22 vs. Estafa (Art. 315(2)(d), Revised Penal Code)

BP 22 punishes the act of issuing a worthless check; intent to defraud and damage are not elements.
Estafa requires deceit and damage (or prejudice).
A single transaction can give rise to both BP 22 and estafa because they protect different interests and have different elements.

Venue, Jurisdiction, and Prescription

Venue: The case may be filed where any element occurred—e.g., place of issuance/delivery of the check or the place of deposit/presentment and dishonor.
Jurisdiction: First-level courts (MeTC/MTC/MCTC) have original jurisdiction.
Prescription: Offenses under BP 22 generally prescribe in four (4) years under Act No. 3326. Filing a complaint for preliminary investigation interrupts prescription.

Common (and Not-So-Common) Defenses

The best defense is often documentary: challenge the elements, the notice, the timelines, or the status of presentment/dishonor.

No written notice / no proof of receipt.
- If the prosecution cannot show the drawer received written notice and then failed to pay within 5 banking days, the case typically fails.
Payment or full arrangement within 5 banking days from receipt of notice.
- Timely funding negates criminal liability (though civil issues may remain).
Not presented within 90 days from date of check.
- Late presentment undermines the action.
No issuance / forgery / lack of authority.
- The accused did not make/draw/issue the check; the signature is forged; or the signatory lacked authority (for non-personal accounts).
Valid stop-payment reason.
- E.g., check was lost, stolen, materially altered, or subject to genuine dispute that legally justifies a stop payment. (Note: Failure of consideration does not generally excuse BP 22 when the check has already been issued; the statute punishes the issuance of a worthless check.)
Not a proper “dishonor” for insufficiency.
- If the bank’s reason is not related to insufficiency/credit (e.g., “signature differs”), BP 22 may not apply.
Corporate checks and signatory liability.
- The signatory who actually signed for the corporation can be liable if he/she knew of insufficiency upon issuance. Lack of knowledge and the existence of a credit line can be raised.

Not a defense: “It was just a guarantee” or “a pre-existing debt.” BP 22 expressly covers checks issued on account or for value, which includes pre-existing obligations and “security” checks once issued.

Practical Playbooks

For Payees/Holders (Complainants)

Present within 90 days from date of the check. Keep deposit slips and bank return memos (e.g., DAIF, Account Closed).
Send written notice of dishonor (registered mail/courier or personal service). Keep the letter, registry receipt, proof of delivery, and return card.
Calendar the 5 banking days. If unpaid, prepare a complaint-affidavit attaching: the check, bank return memo, proof of presentment, the notice, and proof of the drawer’s receipt.
Consider a civil claim (with or without the criminal action). If filing both, manage attachments and prayer for damages and interest.

For Drawers (Accused)

Check the notice: Was it written? Can they prove you received it? When?
Act within 5 banking days from receipt—pay in full or secure a written arrangement with the bank to fund the check. Keep proof.
Scrutinize the bank’s reason for dishonor; if it’s not insufficiency (or stop payment with valid cause), move to dismiss.
Authentication issues: Raise forgery/lack of authority promptly.
Corporate context: Show absence of knowledge and presence of credit facilities.
If convicted, explore fine-only penalty and probation (particularly for first-time offenders and where restitution has been made).

Frequently Asked Questions

1) Is BP 22 “decriminalized”? No. Courts may impose fine only in appropriate cases, but BP 22 remains a criminal offense.

2) If I pay later, will the case be dismissed? Payment within 5 banking days after receipt of written notice prevents criminal liability. Payment after that period does not automatically dismiss the case, though it can mitigate penalty and resolve civil liability (and often leads to settlements).

3) Are checks issued as “security” or for a pre-existing debt covered? Yes. The law covers checks issued “on account or for value”, which includes pre-existing obligations and security checks.

4) Can I be sued for both BP 22 and estafa? Yes, because the two offenses have different elements. Whether both will prosper depends on the evidence.

5) Where should a BP 22 case be filed? In the place where any element occurred—e.g., where the check was issued/delivered or where it was deposited/presented and dishonored.

6) What does “five banking days” mean? Days when banks are open; weekends and bank holidays don’t count.

Compliance Checklist (At a Glance)

Presentment: within 90 days from the check date.
Dishonor reason: insufficient funds/credit (or stop payment without valid reason).
Notice: written, provable receipt by the drawer.
Cure period: 5 banking days from receipt of notice.
Case venue: any place where an element occurred.
Penalties: 30 days–1 year imprisonment or fine up to 2× check amount (cap ₱200,000), or both.
Prescription: generally 4 years (interrupted by filing for preliminary investigation).

Final Notes

Documentation wins cases. In BP 22 prosecutions, paper trails—bank memos, notices, proof of service, and timelines—often determine the outcome.
Each check = one count. Evaluate exposure or leverage settlement accordingly.
Civil and criminal tracks can proceed together; strategy varies with facts, urgency, and the parties’ risk tolerance.

If you’d like, I can draft a notice of dishonor template or a complaint-affidavit outline tailored to your situation.