’04 JUL -1 
A930 
THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
1 
S E N A T E  
S. B. No. 
Introduced by Senator Ramon Bong Revilla, Jr. 
EXPLANATORY NOTE 
On April 3, 1979, more than twenty years had passed since Batas Pambansa Blg. 22, 
othekse known as “An Act Penalizing the Making or Drawing and Issuance of a Check 
Without Sufficient Funds or Credit,” was passed into law. This law was a well-meaning attempt 
to curb the proliferation of bouncing checks which was perceived to be damaging to commercial 
transaction where the check as a negotiable instrument was a convenient tool of business and 
persona1 dealings. 
While this representation is fully cogmzant of the rationale for the law, i.e. the need to 
curb the practice of putting worthless checks in circulation as it can very well pollute the 
channels of trade and commerce and injure the banking system, the rampant and almost 
indiscriminate resort to the statute as a tool to coerce payments have made it imperative for 
Congress to re-examine the efficacy of the law. 
This proposed measwe seeks to amend B.P. Blg. 22 by making other persons who are 
signatories to the check who conspire with the drawer and issuer liable for violation of law; by 
penalizing the issuance of check drawn against closed accounts; and by increasing the penalty 
imposable for the acts penalized under thereunder. 
This measure further seeks to give more teeth to the existing law by increasing the period 
of imprisonment to a minimum of 6 months to a maximum of 6 years and further proposes to 
remove the two hundred thousand peso limit of the fine which can be imposed by the court. 
Moreover, this bill provides that officers and general managers of the drawers 
corporation, company or entity who conspire with the signatories in behalf of the drawer should 
be equally made liable for violation of the law under the legal principle governing conspiracy. 
In the same light, this proposed measure mandates that all drawee banks should provide 
every month an inventoly listing of all the checks, including bank account name and amount of 
the check, that have been dishonored by the drawee bank for reasons consistent with the 
provisions of B.P. 22, and submit the same inventory listing to the Central Bank for proper 
monitoring and database listing. 
By the same token, the banks are hereby empowered to suspend the checking account 
privileges of the checking account clients who are habitual offenders in the issuance of worthless 
checks. 


Finally, one of the landmark provisions of this proposed measure is the imposition of a 
stiffer bail bond requirement for cases involving alleged violations of the provisions of Batas 
Pambansa Blg. 22, as amended, in the amount equivalent to twenty-five percent (25%) of the 
amount of the check that have been dishonored by the drawee bank for reasons of insufficiency 
of funds or for other reasons consistent with the provisions of this Act. 
No one can deny that the harmful practice of putting value-less commercial papers in 
circulation, multiplied a thousand fold, can very well pollute the channels of trade and 
commerce, injure the banking system and eventually hurt the welfare of society and the public. 
The Department of Justice (DOJ) estimates that in MetropoIitan Manila area along, 
approximately thirty percent (30%) of the trial court’s dockets involve supposed violations of 
B.P. 22. 
In the words of a noted legal annotator, “xxx no other single piece of legislation has been 
more abused and its intendments perverted, that B.P. 22.”’ 
It is earnestly hope, therefore, that the passage of this bill would successfully deter the 
issuance of worthless checks in this country and provide the enabling mechanism for the 
improvement of business and trade in the economy. 


THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
“04 
JUI. 
-1 
A9:dD 
First Regular Session 
) 
S E N A T E  
1202 
S. B. No. 
~ 
Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT 
AMENDING BATAS PAMBANSA BLG. 22, 
“AN ACT PENALIZING THE MAKING OR DRAWING AND ISSUANCE 
OF A CHECK WITHOUT SUFFICIENT FUNDS OR CREDIT 
AND FOR OTHER PURPOSES” 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
SECTIONl. 
Section 1 of Batas Pambansa Blg. 22, otherwise known as the 
“Bouncing Check Law”, is hereby amended to read as follows: 
“Section 1. Checks [w]Without (s]Suficient HFunds. - Any person who 
makes or draws and issues any check to apply on account or for value, knowing at 
the time of issue that he does not have sufficient funds in or credit, OR HE HAS 
CLOSED ACCOUNT with the drawee bank for the payment of such check in 
full upon its presentment, which check is subsequently dishonored by the drawee 
bank for insufficiency of funds or credit OR CLOSED ACCOUNT or would 
have been dishonored for the same reason had not the drawer, without any valid 
reason, ordered the bank to stop payment, shall be punished by imprisonment of 
not less than [+h%y&ys] SIX (6) MONTHS but not more than [eftstrtl SIX (6) 
years or by a fine of not less that but not more than double the amount of the 


check [h
1, or both 
such fine and imprisonment at the discretion of the court. 
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 the corporation, company or entity, the 
person or persons who actually signed the check, AS WELL AS THE 
DIRECTOR, OFFICER AND/OR GENERAL MANAGER OF THE 
CORPORATION, COMPANY OR ENTITY WHO nuDUCES, CAUSES 
AND/OR ALLOWS SUCH ISSUANCE, [
-
 
] shall be 
liable under this Act.” 
SEC. 2. 
Section 2 of Batas Pambansa Blg. 22, otherwise known as the “Bouncing 
Check Law”, is hereby amended to read as follows: 
Section 2. Evidence of(k]Knowledge of (t/lnuflcrent HFunds OR OF 
CLOSED ACCOUNT -- The making, drawing and issuance of a check payment 
of which is refused by the drawee because of insufficient funds in or credit or 
CLOSED ACCOUNT 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 OR OF CLOSED ACCOUNT unless such 
maker or drawer pays the holder thereof the amount due thereon, or makes 
arrangements in full by the drawee of such check within [#ive-@j] THREE (3) 
banking days after receiving notice that such check has not been paid by the 
drawee.” 


SECTION3. Section 3 of Batas Pambansa Blg. 22, is hereby amended to read as 
follows: 
"Section 3. Duty of [&"D?awee; [r/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 the drawee's dishonor or 
refusal to pay the same: Provided, That where there are no sufficient funds in or 
credit with such drawee bank, OR WEEN THE ACCOUNT HAS BEEN 
CLOSED, such fact shall always be explicitly stated in the notice of dishonor or 
refusal. In all prosecution 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 
pima 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." 
SEC. 4. 
Pre-qualification Requirements for the Issuance of a Checking Account. 
- Consistent with existing sound banking practices, laws, rules and regulations, the banks are 
hereby empowered to issue .and provide strict and extensive pre-qualification requirements and 
screening criteria in the issuance of a checking account to person(s), corporation, company or 
entity, in which case, the screening criteria and requirements shall include, among others, the 
inquiry as to whether the applicant has been convicted of a crime involving falsification of 
commercial documents and/or crime involving moral turpitude. 


SEC. 5. 
Trial Period for B.P. 22 Cases. - Consistent with the provisions of 
existing laws, upon the effectivity of this Act, cases involving the supposed violation of Batas 
Pambansa Blg. 22, as amended, shall be disposed-of within 120 days from the filling of the case 
thereof in a court of competent jurisdiction. 
SEC. 6. 
Monitoring of Habitual Issuers of Worthless Checks. - At the end of 
each month, all drawee banks are hereby mandated to provide an inventory listing of all the 
 checks, including the hank account name and amount of the check, that have been dishonored by 
the drawee bank for reasons of insufficiency of funds andor that the account have been closed 
by the owner of the account prior to the presentation of said check(s) to the drawee bank. 
All drawee banks are hereby required and mandated to submit said inventory listing of 
dishonored checks, including the bank account name and amount of the check, to the Central 
Bank for proper monitoring and database listing. 
Every month, the Central Bank, in coordination with the different agencies of the 
government, is hereby mandated to prepare a database inventory listing of all the checks, 
including the bank account name and amount of the check, that have been dishonored by the 
different banks in the country for reasons of insufficiency of funds andor that the account have 
been closed by the owner of the account prior to the presentation of said check(s) to the drawee 
bank. 
Every quarter, the Central Bank, in coordination with the different agencies in the 
government, is hereby mandated and required provide a separate listing o f  checking account 
holdershames whose checks have been dishonored three (3) times within given calendar year. 
After the printing of the separate list of habitual offenders, the Central Bank shall inform the 
concerned drawee bank@) for proper action and monitoring, consistent with the provisions of 
this Act. 
SEC. 7. 
Suspension of Checking Account Privileges for Habitual Offenders. - 
Consistent with the provisions of existing laws, the drawee bank, upon receipt of the notification 


from the Central Bank of the list of habitual offenders, is hereby empowered to suspend the 
checking account privileges of the concerned account holder(s) and/or entity on the following 
conditions: 
1. 
For checking account holders whose checks have been dishonored by the drawee 
bank for three (3) times within a given calendar year for reasons consistent with the provisions of 
this Act, the drawee bank is hereby empowered to suspend the checking account privileges of the 
checking account holder and/or entity or a period of three (3) years, upon receipt of the 
notification fiom the Central Bank. 
2. 
For checking account holders who are considered second time offenders whose 
checks have again been dishonored by the drawee bank for three (3) times within a given 
calendar year for reasons consistent with the provisions of this Act, the drawee bank is hereby 
empowered to suspend the checking account privileges of the checking account holder and/or 
entity for a period of five (5) years, upon receipt of the notification from the Central Bank. 
3. 
For checking account holders who are considered third time offenders whose 
checks have again been dishonored by the drawee bank for three (3) times within a given 
calendar year for reasons consistent with the provisions of this Act, the drawee bank is hereby 
empowered to permanently suspend the checking account privileges of the checking account 
holder andor entity, upon receipt of the notification from the Central Bank, without prejudice to 
the filling of separate criminal and civil cases consistent with the provisions of existing laws in 
the Republic of the Philippines. 
SEC. 8. 
Bail Boprd Requirements. - For cases involving alleged violations of the 
provisions of Batas Pambansa Blg. 22, as amended by this Act, 
the courts are hereby 
empowered to impose a bail bond in the amount equivalent to twenty-five percent (25%) of the 
amount of the check that have been dishonored by the drawee bank for reasons of insufficiency 
of funds, or that the account have been closed by the owner of the account prior to the 
presentation of said check(s) to the drawee bank, or for other reasons consistent with the 
provisions of this Act. 


SEC. 9. 
Separability Clause. - If any provision of this Act shall be declared 
invalid or unconstitutional, the remaining part or provisions not otherwise affected shall remain 
in force and effect. 
SEC. 10. 
Repealing Clause. - All laws, decrees, executive orders, issuances, rules 
and regulations or parts thereof inconsistent with the provisions of this Act are hereby repealed, 
amended or modified accordingly. 
SEC. 11. 
Eflectivity, - This Act shall take effect after fifteen (15) days following 
the completion of its publication in the OMicial Gazette and in at least two (2) newspapers of 
general circulation. 
Approved,