Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 21 views

    Bouncing Checks Notes

    Uploaded by

    RyD
    This document discusses Philippine laws regarding bouncing checks and estafa by check. It defines what constitutes a check and the requirements for bouncing check liability under the Anti-Bouncing Checks Law (BP 22). Specifically, it requires 1) making, drawing, and issuing a check, 2) knowledge of insufficient funds at the time of issue, and 3) subsequent dishonor or stopping payment without valid reason. Bouncing a check is considered prima facie evidence of insufficient funds. Estafa by check involves postdating a check or issuing a check without sufficient funds, with failure to deposit funds within 3 days of notice of dishonor being prima facie evidence of deceit.

    Copyright:

    © All Rights Reserved

    Bouncing Checks Notes

    Uploaded by

    RyD
    21 views3 pages
    This document discusses Philippine laws regarding bouncing checks and estafa by check. It defines what constitutes a check and the requirements for bouncing check liability under the Anti-Bouncing Checks Law (BP 22). Specifically, it requires 1) making, drawing, and issuing a check, 2) knowledge of insufficient funds at the time of issue, and 3) subsequent dishonor or stopping payment without valid reason. Bouncing a check is considered prima facie evidence of insufficient funds. Estafa by check involves postdating a check or issuing a check without sufficient funds, with failure to deposit funds within 3 days of notice of dishonor being prima facie evidence of deceit.

    Copyright

    © © All Rights Reserved

    Did you find this document useful?

    Is this content inappropriate?

    This document discusses Philippine laws regarding bouncing checks and estafa by check. It defines what constitutes a check and the requirements for bouncing check liability under the Anti-Bouncing Checks Law (BP 22). Specifically, it requires 1) making, drawing, and issuing a check, 2) knowledge of insufficient funds at the time of issue, and 3) subsequent dishonor or stopping payment without valid reason. Bouncing a check is considered prima facie evidence of insufficient funds. Estafa by check involves postdating a check or issuing a check without sufficient funds, with failure to deposit funds within 3 days of notice of dishonor being prima facie evidence of deceit.

    Copyright:

    © All Rights Reserved
    21 views3 pages

    Bouncing Checks Notes

    Uploaded by

    RyD
    This document discusses Philippine laws regarding bouncing checks and estafa by check. It defines what constitutes a check and the requirements for bouncing check liability under the Anti-Bouncing Checks Law (BP 22). Specifically, it requires 1) making, drawing, and issuing a check, 2) knowledge of insufficient funds at the time of issue, and 3) subsequent dishonor or stopping payment without valid reason. Bouncing a check is considered prima facie evidence of insufficient funds. Estafa by check involves postdating a check or issuing a check without sufficient funds, with failure to deposit funds within 3 days of notice of dishonor being prima facie evidence of deceit.

    Copyright:

    © All Rights Reserved
    of 3

    Anti-Bouncing Checks Law (BP 22)

    CHECK, DEFINED
     a bill of exchange drawn on a bank payable on demand
     Parts of a check, from the top of the front page

    a) The check number;


    b) The account name or the name of the drawer/issuer who retains an account with the drawee bank;
    c) The check number as given by the drawee bank;
    d) The date of issuance/maturity;
    e) The name of the payee or creditor;
    g) The amount payable or drawn in the figure;
    f) The amount payable in words;
    g) The drawee bank’s name and address; and
    h) The signature of the drawer/issuer of the check.

    At the back of the check is the endorsement, with the name of the payee and the signature, and the
    account number to which the funds will be deposited, and the portion where the drawee bank’s
    employee writes.

    REQUISITES TO BECOME LIABLE UNDER B.P.22

    1. The making, drawing and issuance of any check to apply on account or for value;
    2. The knowledge of the maker, drawer or 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; and
    3. (a) The subsequent dishonor of the by the drawee bank for insufficiency of funds or credit or (b) would have
    been dishonored for the same reason had not the drawer, without any valid reason, ordered the bank to stop
    payment

    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

    Any person who makes or draws and issues any check to apply on account or for value but without any valid
    reason, ordered the bank to stop payment
    1
    For the exclusive use of University of the Visayas LAW 222 students of AS1-AS2 A.Y. 2022 – 2023. Unauthorized reproduction and/or distribution is prohibited.
    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

    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 90 days from the date of the check
    • Prima facie evidence of knowledge of such insufficiency of funds or credit

    DUTY OF THE DRAWEE


    It shall be the duty of the drawee of any check, when refusing to pay the same to the holder thereof upon
    presentment, to cause to be written, printed, or stamped in plain language thereon, or attached thereto, the
    reason for drawee's dishonor or refusal to pay the same

    where there are no sufficient funds in or credit with such drawee bank, such fact shall always be explicitly
    stated in the notice of dishonor or refusal

    CREDIT CONSTRUED
    an arrangement or understanding with the bank for the payment of such check

    NATURE OF PRESUMPTION
    The presumption is not conclusive as it may be rebutted by full payment.
     If the maker or drawer pays, or makes arrangement with the drawee bank for the payment of the amount
    due within the five-day period from notice of dishonour, he or she may no longer be indicted for such
    violation.

    NOTICE OF DISHONOR IS REQUIRED


     The presumption is brought into existence only after it is proved that the issuer had received a notice
    of dishonour and that within five days from receipt thereof, he failed to pay the amount of the check or
    to make arrangements for its payment.
     The presumption or prima facie evidence cannot arise, if such notice of non-payment by the drawee
    bank is not sent to the maker or drawer, or if there is no proof as to when such notice was received by
    the drawer, since there would simply be no way of reckoning the crucial 5 day period.
     A notice of dishonour received by the maker or drawer of the check is thus indispensable before a
    conviction can ensue.
     The notice of dishonour may be sent by the offended party or the drawee bank.
     The notice must be in writing. A mere oral notice to pay a dishonoured check will not suffice.
     The law require for the act to be punished thereunder not only that the accused issued a check that is
    dishonoured, but also that the accused has actually been notified in writing of the fact of dishonour.

    MOTIVE FOR THE ISSUANCE OF A BAD CHECK


     not a defense for violation of BP 22
     The gravamen of the offense punished under B.P. Blg. 22 is
    • the act of making or issuing a worthless check or
    • a check that is dishonored upon its presentment for payment.
     The law has made the mere act of issuing a bad check malum prohibitum
    • an act proscribed by the legislature for being deemed pernicious and inimical to public welfare.
    • In mala prohibita cases, the only inquiry is whether the law has been breached.
    • Criminal intent becomes unnecessary where the acts are prohibited for reasons of public policy,
    and the defenses of good faith and absence of criminal intent are unavailing.

    ESTAFA
    Art. 315. Swindling (estafa). — Any person who shall defraud another by any of the means mentioned
    hereinbelow shall be punished by:
    2. By means of any of the following false pretenses or fraudulent acts executed prior to or simultaneously with
    the commission of the fraud:
    (d) [By post-dating a check, or issuing a check in payment of an obligation when the offender 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 the payee or
    2
    For the exclusive use of University of the Visayas LAW 222 students of AS1-AS2 A.Y. 2022 – 2023. Unauthorized reproduction and/or distribution is prohibited.
    holder that said check has been dishonored for lack of insufficiency of funds shall be prima facie evidence of
    deceit constituting false pretense or fraudulent act.

    ESTAFA BY MEANS OF DECEIT


    1. There must be a false pretense, fraudulent act or fraudulent means;
    2. Such false pretense, fraudulent act or fraudulent means must be made or executed prior to or simultaneously
    with the commission of the fraud.
    3. Offended party relied on the false pretense, fraudulent act, or fraudulent means and by reason thereof, was
    induced to part with his money or property.
    4. As a result, the offended party suffered damage.

    ESTAFA BY POSTDATING A CHECK


    1. Offender postdated a check, or issued a check in payment of an obligation; and
    2. Such postdating or issuing a check was done when the offender had no funds in the bank, or his funds
    deposited therein were not sufficient to cover the amount of the check.

    Must be the Efficient Cause


    To constitute estafa, the post-dating or issuance of the check should be the efficient cause of the defraudation.
    As such, it should be given either prior to, or simultaneously with, the act of fraud.

    Prima Facie Evidence of Deceit


    There is prima facie evidence of deceit when the drawer fails to pay 3 days after receiving notice of dishonor

    Stoppage of a Payment of a Check


    If checks were issued by defendant and he received money for them and stopped payment and did not return
    the money and if at the time the check was issued, he had the intention of stopping payment, he is guilty of
    estafa.

    3
    For the exclusive use of University of the Visayas LAW 222 students of AS1-AS2 A.Y. 2022 – 2023. Unauthorized reproduction and/or distribution is prohibited.

    You might also like