HQISE OF REPRESENTATIVES:

RECEIVED

Republic of the Philippines | pate; 03 AUG 2016
HOUSE OF REPRESENTATIVES |... SF -aypn

Quezon City, Metro Manila oT
BY: focly

REGISTRATION UNIT
BILLS AND INDEX SERVICE

Seventeenth Congres:
First Regular Session‘

HOUSE BILLNO._ 2915

Introduced by Honorable Ramon “Red” H. Durano VI

EXPLANATORY NOTE

This bill seeks to amend Batas Pambansa Bilang 22, otherwise
known as act penalizing the making or drawing and issuance of a check
without sufficient funds, or credit and for other purposes.

The rampant clamor of the business sectors of the proliferation of
cases involving the issuance of unfunded checks has greatly affected the
integrity of the banking and business transaction all throughout the
country. The need to protect the integrity of the check as a form of legal
tender in the country is paramount. The clamor to protect the issuance of
check is left unheeded, could have a serious implication on the country’s
booming economy.

Appropriately, the need to amend the three decades old law is
warranted as some provisions in the said law could no longer cope up
with the current business practice or is no longer sufficient to deter
unscrupulous people form abusing the issuance of the unfunded check.
This amendment seeks to ensure the integrity of the country’s economic
advances and protect the Philippine banking industry as a whole.

In view of the foregoing, the approval of this bill is urgently
requested.

RAI ed” H. DURAN



HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
First Regular Session

HOUSE BILL 2519

Introduced by Honorable Ramon “Red” H. Durano VI

AN ACT AMENDING BATAS PAMBANSA BILANG 22
INCREASING THE PENALTIES FOR MAKING OR DRAWING AND
ISSUANCE OF A CHECK WITHOUT SUFFICIENT FUNDS, OR
CREDIT AND FOR OTHER PURPOSES INCLUDING MAKING OR
DRAWING AND ISSUANCE OF A CHECK WITH A CLOSED BANK
ACCOUNT.

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

SECTION 1. Batas Pambansa Bilang 22 otherwise known as THE
ANTI BOUNCING CHECKS LAW.

is hereby amended to read as follows:

Section 1. Checks without sufficient funds. - 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 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 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 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.] A. KNOWING AT THE TIME OF ISSUE THAT HE DOES


XXX

NOT HAVE SUFFECIENT FUNDS IN OR CREDIT 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 INSUFFECIENCY OF
FUNDS OR CREDIT 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 ONE (1) YEAR BUT
NOT MORE THAN THREE (3) YEARS.

B. 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.

C, KNOWING AT THE TIME OF ISSUE THAT HIS BANK ACCOUNT
WITH THE DRAWEE BANK HAS ALREADY BEEN CLOSED, WHICH
CHECK IS SUBSEQUENTLY DISHONORED BY THE DRAWEE
BANK FOR BEING A CLOSED ACCOUNT, SHALL BE PUNISHED BY
IMPRISONMENT OF FOUR (4) YEARS BUT NOT MORE THAN
SIX(6) YEARS.

XXX XXX XXX

SECTION 2. Batas Pambansa Bilang 22 otherwise known as THE ANTI
BOUNCING CHECKS LAW.

is hereby amended to read as follows:

Evidence of knowledge of insufficient funds. - The making, drawing and
issuance of a check payment of which is refused by the drawee
because of [insufficient funds in or credit 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 unless such maker or drawer pays the holder thereof the amount
due thereon, or makes arrangements for payment in full by the drawee
of such check within (5) banking days after receiving notice that such
check has not been paid by the drawee.] A. INSUFFECIENT FUNDS
IN OR CREDIT WITH SUCH BANK, WHEN PRESENTED WITHIN
ONE HUNDRED EIGHTY DAYS FROM THE DATE OF THE CHECK,
SHALL BE PRIMA FACIE EVIDENCE OF KNOWLEDGE OF SUCH
INSUFFECIENCY OF FUNDS OR CREDIT UNLESS SUCH MAKER
OR DRAWER PAYS THE HOLDER THEREOF THE AMOUNT DUE
THEREON OR MAKES ARRANGEMENTS FOR PAYMENT IN FULL
BY THE DRAWEE OF SUCH CHECK WITHIN (30) BANKING DAYS


AFTER RECEIVING NOTICE THAT SUCH CHECK HAS NOT BEEN
PAID BY THE DRAWEE.

B. CLOSED BANK ACCOUNT, WHEN PRESENTED WITHIN ONE
HUNDRED EIGHTY DAYS FROM THE DATE OF THE CHECK,
SHALL BE PRIMA FACIE EVIDENCE OF KNOWLEDGE OF ISSUING
A CHECK DESPITE HAVING A CLOSED BANK ACCOUNT, UNLESS.
SUCH MAKER OR DRAWER PAYS THE HOLDER THEREOF THE
AMOUNT DUE THEREON OR MAKES ARRANGEMENTS FOR
PAYMENT IN FULL BY THE DRAWEE OF SUCH CHECK WITHIN
(30) BANKING DAYS AFTER RECEIVING NOTICE THAT SUCH
CHECK HAS NOT BEEN PAID BY THE DRAWEE.

NOTICE OF DISHONOR- THE MAILING OF THE NOTICE OF
DISHONOR BY THE MAKER OR DRAWER TO THE DRAWEE’S
LAST KNOWN ADDRESS VIA REGISTERED MAIL SHALL BE
DEEMED AS SUFFECIENT COMPLIANCE AS EVIDENCE OF
RECEIPT OF THE SAID NOTICE BY THE DRAWEE.

XXX XXX XXX XXX

Section 7. Effectivity. — This act shall take effect within fifteen (15) days after
its publication in at least two newspapers of general circulation.

Approved,