Repubtiz of the Philippines
Housr Or REPRESENTATIVES
Quezon City, Metro Manila

Fifteenth Congress
First Regular Session

HOUSE BILLNo.__3954_

Introduced by Honorable Karlo Alexei B. Nograles

EXPLANATORY NOTE

This bill seeks to repeal Batas Pambansa (BP) Bilang 22, otherwise known
as the “Bouncing Checks Law.”

Under BP 22 which was enacted in 1979, any person who makes or draws.
and issues a check knowing that his or her bank account does not have sufficient
funds shall be penalized with imprisonment of 30 days to one year or a fine of not
than but not more than double the amount of the check which fine shall in no
e exceed Two hundred thousand pesos (P200,000.00), or both such fine and
imprisonment at the discretion of the court. The same penalty is also imposed
upon any person who, having sufficient funds in or credit with the drawee bank
when he makes or draws and issues a check, fails 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.

Oftentimes, creditors who lend money require the issuance of postdated
checks in payment of existing financial obligations, which at the time the checks
are issued, the debtor has no malice or intent to defraud the creditor but is merely
complying with the demand of the creditor even with the very high interest

otherwise he cannot borrow money from said creditor.

Criminal prosecutions for violation of BP 22 involve basically postdated
checks issued precisely as evidence of indebtedness, secured collaterally by the
personal liberty of the debtor who is the drawer of the check.

Bill Drafting Service


Even the Supreme Court has “tamed” its penalty for the violation of BP 22,
giving preference to fine instead of imprisonment. In its decision in Eduardo Vaca
vs, Court of Appeals (G.R. No. 131714, 16 November 1998, 298 SCRA 656, 664),
the Supreme Court per Justice V. Mendoza, modified the sentence imposed for
violation of BP 22 by deleting the penalty of imprisonment and imoesing only the
penalty of fine in an amount double the amount of the check. Aiso in a recent case
of Rosa Lim vs. People of the Philippines (G.R. No. 130038, 18 September 2000),
the Supreme Court en bane, applying the Vaca case, also deleted the penalty of
imprisonment and sentenced the drawer of the bounced check to the maximum of
fine allowed by BP 22 and concluded that such would best serve the ends of
criminal justice.

In such cases, it is no longer necessary to continue the application of BP 22
when it concerns checks. Hence its repeal.

Indeed, the repeal of BP 22 will not render the creditor unprotected from
unscrupulous debtors because he can still go after the debtor by prosecuting him
for estafa or other forms of swindling as defined in Article 315 and 316 of the
Revised Penal Code or a civii action for collection of the sum of merey owed the
creditor.

In view of the foreg
recommended.

2. approval of this bill is highly and earnestly

vue

KARLO ALEXEI B. NOGRALES


Republic of the Philippines
Housr Or REPRESENTATIVES
Quezon City, Metro Manila

Fifteenth Congress
First Regular Session

HOUSE BILL NO. __ 3954

Introduced by Honorable Karlo Alexei B. Nograles

AN ACT
REPEALING BATAS PAMBANSA BILANG 22, OTHERWISE KNOWN AS
THE “BOUNCING CHECKS LAW”

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Batas Pambansa (BP) Bilang 22, entitled “An Act Penalizing
The Making Or Drawing And Issuance Of A Check Without Sufficient Funds Or

Credit And For Other Purposes,” is hereby repealed.
SEC. 2. Upon the effectivity of this Act, all criminal cases pending in court

for violation of BP 22

all be deemed dismissed by operation of law, without
prejudice to the accompanying civil action, and the prosecution to any liability for
violation of any provision of the Revised Penal Code.

SEC. 3. All other laws or parts thereof contrary to or inconsistent with the
provisions of this Act are hereby repealed or amended accordingly.

SEC. 4. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in at least two (2) national newspapers of general

circulation.

Approved,