B.P. 22 Notes - Batas Pambansa PDF

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SALIENT POINTS OF THE BATAS PAMBANSA BLG. 22 General Concepts Commercial Laws → Branch of private law which regulates the juridical relations arising from commercial acts and according to which the questions or controversies which may arise therefrom are resolved. Coverage: 1. Negotiable Instruments 2. Warehouse Receipts 3. Letters of Credit 4. Partnership 5. Corporation 6. Single Proprietorship 7. Joint Accounts 8. Insurance 9. Mortgage 10. Banking Regulations 11. Insolvency 12. Securities 13. Intellectual Properties 14. Public Utilities 15. Bottomry BATAS PAMBANSA BLG. 22 (ANTI-BOUNCING CHECK LAW) Check → a written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer, holder or to specified person named therein → bill of exchange drawn on a bank payable on demand Bill of Exchange → an unconditional order in writing addressed by one person to another signed by the person giving it (1) requiring the person to whom it is addressed to pay on demand or at a fixed determinable future time (2) a sum certain in money (3) to order or to bearer Parties to a Bill of Exchange 1. Drawer → the person drawing or making the instrument or the person giving the order 2. Drawee → the addressee of the order to pay of the person required to pay the instrument 3. Payee → the person to whom payment is to be made Raizon D’etre o “The point then of punishing the issuance of bouncing checks is to safeguard the financial system. If bouncing checks were allowed to happen without penal sanction, it is possible that this would “…greatly erode the faith the public reposes in the stability and commercial value of checks as currency substitutes, and bring about havoc in trade and in banking communities.” (Caras vs. Court of Appeals, G.R. No. 129900, 2 Oct. 2001) o “This law imposes criminal liability on the issuance of bouncing checks. In the words of the Supreme Court:

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“What the law punishes is the issuance of a bouncing check and not the purpose, for which the check was issued, nor the terms and conditions of its issuance.” (Caras vs. Court of Appeals, G.R. No. 129900, 2 October 2001) “The gravamen of the offense punished by B.P. 22 is the act of making and issuing a worthless check or a check that is dishonored upon its presentation for payment. It is not the non-payment of an obligation which the law punishes.” “The law is not intended or designed to coerce a debtor to pay his debt. The thrust of the law is to prohibit, under pain of penal sanctions, the making of worthless checks and putting them in circulation. Because of its deleterious effects on the public interest, the practice is proscribed by law.”

Kinds of Bill of Exchange 1. Draf → Used synonymously with bill of exchange although it normally refers to a bill of exchange used in documentary exchange like letters of credit transactions 2. Inland and Foreign Bill → Bill which is, or on its face purports to be, both drawn and payable within the Philippines. Any other bill is a foreign bill 3. Time Draf → Draf that is payable at a fixed date 4. Sight or Demand Draf → Draf that is payable when the holder presents it for payment 5. Trade Acceptance → Bill that is used in contracts of sale where the seller as drawer orders the buyer (as drawee) to pay a sum certain to the same seller (payee) 6. Banker’s Acceptance → A time draf across the face of which the drawee has written the cord acceptance 7. Check → A bill of exchange drawn on a bank payable on demand Kinds of Checks 1. Crossed Check → One which bears across its face two parallel lines drawn diagonally, usually on the upper lef side a. General – name of intermediary may be included b. Special – payment must only be made to the entity/person indicated 2. Stale Check → One which has not been presented for payment within a reasonable time afer its issue; → Became valueless; 6 mos  “The law punishes the act not as an offense against property, but an offense against public order.” (Medalla v. Laxa, G.R. No. 193362, 18 January 2012)  “The act is malum prohibitum, pernicious and inimical to public welfare.” (Francisco T. Sycip, Jr. v. Court of Appeals, G.R. No. 125059, March 17, 2000 Elements of the Crime 1. The issuance of a check for value → The Court has consistently pronounced that the issue of lack of valuable consideration for the issuance of checks which were later on dishonored for insufficient funds is immaterial to the success of a prosecution for violation of B.P. 22. (Dreamwork Construction, Inc. v. Janiola, G.R. No. 184861, June 30, 2009, 591 SCRA 466.478 2. The knowledge of the issuer that at the time of issue he does not have sufficient funds in or credit with the drawee bank for the payment of the check in full upon its presentment 3. The subsequent dishonour of the check by the drawee bank due to insufficiency of funds

Estafa Article 315 of the Revised Penal Code, paragraph 2(d) provides as follows: → 2. By means of the following false pretenses or fraudulent acts executed prior to or simultaneously with the commission of the fraud: (d) By postdating a check, or issuing a check in payment of an obligation when the offender had no funds in the bank, or his funds deposited therein were not sufficient to cover the amount of the check. The failure of the drawer of the check to deposit the amount necessary to cover his check within three (3) days from receipt of notice from the bank and/or payee or holder that said check has been dishonored for lack or insufficiency of funds shall be prima facie evidence of deceit constituting false pretense or fraudulent act. Elements of Estafa 1. The offender has postdated or issued a check in payment of an obligation contracted at the time of the postdating or issuance; 2. At the time of postdating or issuance of said check, the offender has no funds in the bank or the funds deposited are not sufficient to cover the amount of the check 3. The payee has been defrauded. It has been settled in jurisprudence that in the above-defined form of estafa, it is not the nonpayment of a debt which is made punishable, but the criminal fraud or deceit in the issuance of a check.  Deceit has been defined as “the false representation of a matter of fact, whether by words or conduct by false or misleading allegations or by concealment of that which should have been disclosed which deceives or is intended to deceive another so that he shall act upon it to his legal injury. (Iluminada Batac vs. People of the Philippines, G.R. No. 191622, 6 June 2018 One Check, Two Criminal Cases → The simultaneous filing of B.P. 22 and Estafa cases does NOT amount to DOUBLE JEOPARDY.

SOURCE: Novis Veteris. (2020, August 3). Batas Pambansa Blg 22 [Video file]. Retrieved October 1, 2020, from https://www.youtube.com/watch?v=wji6xV-lvOI...