NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
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, the Legacy Group of Companies, and most recently the Kapa Community 
Ministry.  
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. 
RUFUS B. RODRIGUEZ 
March 16, 2023
7:00 pm
7656


NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
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 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
Section 1. Declaration of Policy. – It is the declared policy of the state to 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, 
7656