In the Philippines, the issuance of a bouncing check is governed primarily by Batas Pambansa Blg. 22 (BP 22), also known as the Anti-Bouncing Checks Law, and Article 315 of the Revised Penal Code (Estafa).
While the act of issuing a check that is subsequently dishonored by a bank is the core offense, a conviction often hinges on a single, critical procedural step: the service of a Notice of Dishonor.
1. The Legal Necessity of the Notice
Under BP 22, the prosecution must prove "knowledge of insufficiency of funds" at the time the check was issued. Since it is difficult to prove a person’s state of mind, the law provides a presumption of knowledge.
This presumption only arises if:
- The check is presented within 90 days from the relevant date.
- The issuer receives a written notice of dishonor.
- The issuer fails to pay the amount due or make arrangements for payment within five (5) banking days from receipt of said notice.
Without a valid notice of dishonor, the "prima facie" evidence of knowledge does not exist, often leading to an acquittal on the basis of reasonable doubt.
2. Essential Elements of the Notice
For a Notice of Dishonor to be legally effective, it should ideally contain the following information:
- Identification of the Check: The check number, date, and amount.
- The Reason for Dishonor: Specifically stating that the bank returned the check (e.g., DAIF - Drawn Against Insufficient Funds, or Account Closed).
- The Demand for Payment: A clear instruction to the drawer to pay the full face value of the check.
- The Grace Period: A reminder that the drawer has five (5) banking days from receipt to settle the obligation to avoid criminal prosecution.
3. Modes of Service
The law is strict: the notice must be in writing. Verbal demands are insufficient for the purposes of BP 22.
| Mode of Service | Requirement for Proof |
|---|---|
| Personal Service | A copy of the letter stamped "Received" with the printed name, signature, and date of the recipient. |
| Registered Mail | The Registry Receipt issued by the Post Office AND the Registry Return Card signed by the addressee or an authorized agent. |
Note: If the mail is "unclaimed," it does not automatically constitute receipt. The prosecution must prove that the address used was correct and that the postmaster attempted delivery.
4. Who Must Receive the Notice?
The notice must be served upon the drawer of the check.
- Corporate Checks: If the check was issued by a corporation, the notice must be served upon the authorized signatories who signed the check. Serving the corporation generally is often insufficient; the individual officers sought to be held liable must be personally notified to satisfy the requirement of "actual knowledge."
5. The "Five-Day" Rule
The five-day period is the window of "legal grace." If the drawer pays the full amount of the check within five banking days from the moment they (or their authorized representative) receive the notice, the presumption of knowledge is negated, and they cannot be held liable for a violation of BP 22.
6. Common Pitfalls and Jurisprudence
The Supreme Court of the Philippines has consistently held that the burden of proving receipt of the notice rests solely on the prosecution.
- The "Registry Receipt" is not enough: A common mistake is presenting only the receipt issued by the Post Office when mailing the letter. Without the Return Card or a Certification from the Postmaster, there is no proof the letter actually reached the drawer.
- Inauthentic Signatures: If the signature on the Return Card is illegible or does not match the drawer’s known signature, and the drawer denies receipt, the case may fail unless the prosecution can prove who received the mail.
7. Civil vs. Criminal Liability
It is important to distinguish that while the absence of a Notice of Dishonor may result in the dismissal of the criminal aspect of the case (BP 22), the civil liability remains. The person who issued the check still owes the money, and a court can still order the payment of the face value of the check plus legal interest, even if no notice was served.