. 
, 
THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
1 
) 
First Regular Session 
1 
OF THE PHILIPPINES 
S 
A T  
2 
S. No. 
Introduced by Senator S. R. 
EXPLANATORY NOTE 
Presidential Decree 818 was signed into law in 1975, as a deterrent to 
offenses of swindling with the use of bouncing checks. This law increased the 
penalties for estafa committed through bouncing checks as follows: 
a) If the amount of fraud is over P12,OOO but not exceeding P22,000, the 
penalty was increased to reclusion temporal from prision correccional in its 
maximum period to prision mayor in its minimum period. This means an 
increase in the range of imprisonment to 12 years and one day to 20 years, 
from 4 years and 2 months and one day to 8 years; 
b) If the amount excess P22,000, the penalty shall be imposed in its 
maximum period, adding one year for each additional P10,OOO. The total 
penalty however not to exceed 30 years, from the original 20 years. In such 
cases, the penalty shall be terms reclusion perpetua from prision mayor or 
reclusion temporal, as the case may be; 
c) If the amount of fraud is over P6,OOO but not exceeding P12,OOO the 
penalty was increased to prision mayor in its maximum period, from prision 
correccional in its minimum and medium periods meaning imprisonment of 
10 years and one day to 12 years, from 6 months and one day to 4 years and 
two months. 
d) If the amount is over P200 but not exceeding P6,000, the penalty was 
increased to prision mayor in its medium term from arresto mayor in its 
maximum period to prision correccional in its minimum period 
or 
imprisonment of 8 years and one day to 10 years, from the previous 4 
months and one day to 2 years and 4 months. 
e) If the amount is less than P200 the penalty is prision mayor in its minimum 
period instead of arresto mayor in its maximum period, or imprisonment of 6 
years and one day to 8 years, from the previous penalty of 4 months and one 
day to 6 months. 
This bill seeks to repeal P.D. 818. The above penalties are clearly too 
harsh, classifying fraud involving P22,000, an offense against property within 
the same league as non-bailable offenses such as rape, murder and other 
heinous crimes. Thus has P.D. 818 lent loan sharks with an effective weapon 
with which to harass poor unwitting debtors, many of them micro-entrepreneurs 
trying to start up small business ventures. 
In view of the foregoing, early passage of this bill is earnestly requested. 
Iyt/ 
SERGIO R. OSMENA Ill 
Senator 


4 
* 
THIRTEENTH CONGRESS OF THE REPUBLI 
OF THE PHILIPPINE 
1 
Firsf Regular Session 
1 
E N A T  
Introduced by Senator S. R. Osmeiia Ill 
AN ACT 
RESTORING 
THE 
ORIGINAL 
PENALTIES 
IMPOSED 
FOR 
ESTAFA 
COMMITTED THROUGH BOUNCING CHECKS UNDER ARTICLE 315 OF THE 
REVISED 
PENAL 
CODE 
AND 
REPEALING 
FOR 
THIS 
PURPOSE 
PRESIDENTIAL DECREE NO. 81 8 
Be it enacfed by fhe Senafe and House of Represenfafives of the 
Philippines in Congress assembled: 
I 
SECTION I, - Any provision of law to the contrary notwithstanding, 
2 
Presidential Decree No. 81 8 entitled "Amending Article 31 5 of the Revised Penal 
3 
Code by Increasing the Penalties for Estafa Committed by Means of Bouncing 
4 
Checks" is hereby repealed. 
5 
The original penalties imposed for estafa committed by means of bouncing 
G 
checks urider Article 315 of the Revised Penal Code, are hereby restored. 
I 
SECTION 2. - This Act shall take effect fifteen (15) days from the date of 
8 
the completion of its publication in the Official Gazette or in at least two (2) 
9 
newspapers of general circulation. 
Approved,