The Bouncing Check Law and related circulars

The Bouncing Check Law otherwise known as BP 22 or Batasang Pambansa No. 22, is an old special law, issued way back in 1979 which penalizes the issuance of worthless checks or bounced checks. These are checks that were issued by the maker or drawer of a check but were dishonored by his or her bank because of insufficient funds.

To be liable for violation of  BP 22, the following essential elements must be present: (1) the making, drawing, and issuance of any check to apply for account or for value; (2) the knowledge of the maker, drawer, or issuer that at the time of issue he does not have sufficient funds in or credit with the drawee bank for the payment of the check in full upon its presentment; and (3) the subsequen­­­­­­­­t dishonor of the check by the drawee bank for insufficiency of funds or credit or dishonor of the check for the same reason had not the drawer, without any valid cause, ordered the bank to stop payment.

The BP 22 penalty is 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 bouncing check law is both criminal and civil. This means that a person who issues bounced check incurs both criminal and civil liability. However, with the issuance by the Supreme Court of Administrative Circular N0 13-2001 and following the doctrine laid down in Vaca vs. CA G.R. No. 131714, 16 November 1998, a judge may exercise discretion in the application of the penal provisions of BP 22, such that where the circumstances of both the offense and the offender clearly indicate good faith or a clear mistake of fact without taint of negligence, the imposition of a fine along should be considered as the more appropriate penalty.

In the decision in Eduardo Vaca, v. Court of Appeals the Supreme Court  modified the sentence imposed for violation of B.P. Blg. 22 by deleting the penalty of imprisonment and imposing only the penalty of fine in an amount double the amount of the check.  This however does not decriminalize violations of BP 22 but merely sets the rule on preference on imposition of penalty. Simply put, fine is preferred in the imposition of penalty for the Bouncing Check Law rather than imprisonment if the circumstances as stated so warrant.

On the prescriptive period, the Bouncing Check Law is a special law that imposes a penalty of imprisonment of not less than thirty (30) days but not more than one year or by a fine for its violation. Thus, BP 22 prescribes in four (4) years in accordance with Act No. 3326 (People vs. Pangilinan, G.R. No. 152662, June 13, 2012).