FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )
HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus 8. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

3003

House Bill No._“ ~~~

EXPLANATORY NOTE

Batas Pambansa Blg. 22 otherwise known as “An Act Penalizing the
Making or Drawing and Issuance of a Check without Sufficient Funds or
Credit," was passed to curb the issuance of bouncing checks. However,
despite the passage of the said law, bouncing checks continue to proliferate the
market. What is worse, bouncing checks were likewise used by persons
engaged in pyramid scams as payments for the recruited investors either as a
return of their investments or commissions for recruiting other investors, Our
people have been defrauded by different pyramid scams which involved billions
of pesos such as the Multitel of Rose Baladjay in 2002, the SMFund,
Francswiss and PIPC in 2007, the Royal Manchester Five in 2008 and the most
recent, the Legacy Group of Companies.

Under the Negotiable Instruments Law which governs the issuance of
checks, it is not required that the name of the drawer should appear on the face
of the checks. Only the signature of the drawer is required. However, the
victims of the pyramid scams had difficulty in filing cases for bouncing checks
because they did not know who were the signatories/drawers of the checks
especially in cases of corporations. This bill seeks to address this problem by
requiring the drawer/s of the checks to legibly print his/her/their name/s before
signing the check.

In view of the foregoing, the passage of this bill is earnestly sought.

RUFYS B. RODRIGUEZ

My

MAXIMO B. RODRIGUEZ, JR.


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No. 3003

AN ACT
AMENDING ACT NO. 2031, OTHERWISE KNOWN AS THE NEGOTIABLE
INSTRUMENTS LAW, BY REQUIRING THE DRAWER OF THE CHECK TO
LEGIBLY PRINT HIS/HER NAME BEFORE SIGNING THE SAME

Section 1. Declaration of Policy. — \t is the declared policy of the state
protect its people and economy from the proliferation or worthless or bouncing
checks.

Section 2. Amendment. Section 1 of Act No. 2031, otherwise known
‘as The Negotiable Instruments Law, is hereby amended to read as follows:

"Section 1. Form of negotiable instruments. - An
instrument to be negotiable must conform to the following
requirements:

(a) It must be in writing and signed by the maker or
drawer,

(b) Must contain an unconditional promise or order to pay a
sum certain in money;

(c) Must be payable on demand, or at a fixed or
determinable future time;

(d) Must be payable to order or to bearer, and
(e) Where the instrument is addressed to a drawee, he
must be named or otherwise indicated therein with
reasonable certainty.

IN CASE OF A CHECK, THE DRAWER MUST LEGIBLY
PRINT HIS OR HER NAME BEFORE SIGNING THE SAME.”


Section 3. Repealing Clause. - All laws, orders, issuances, rules and
regulations or parts thereof inconsistent with this Act are hereby repealed or
modified accordingly.

Section 4. Effectivity. - This Act shall take effect fifteen (15) days
after its complete publication in at least two (2) newspapers of general
circulation

Approved,