BP22 Law Philippines

Understanding BP22

BP22, or Batas Pambansa Bilang 22, is more commonly known as the "Bouncing Checks Law" in the Philippines. This law penalizes the making or issuance of a check that is dishonored due to insufficient funds or a closed account. BP22 aims to instill trust and confidence in the use of checks, which are often used in trade and other financial transactions.

Elements of BP22 Violation

For a person to be held liable under BP22, the following elements must be present:

Making, drawing, or issuing a check for value.
Knowledge of insufficiency of funds or credit with the drawee bank for the payment of such check upon its presentment.
Subsequent dishonor of the check by the drawee bank for insufficiency of funds or credit, or dishonor for the same reason had not the drawer, without any valid cause, ordered the bank to stop payment.

Notification Requirement

The law requires that the issuer of the dishonored check be notified of its dishonor and given at least five banking days to settle the payment. Failure to do so can result in criminal liability.

Legal Consequences

Violation of BP22 is a criminal offense and is subject to penalties, which may include imprisonment of not less than 30 days but not more than one year or by a fine, depending on the court's discretion. Both penalties can also be applied.

Defenses Against BP22 Charges

Some defenses may include:

No Notice of Dishonor: Lack of proper notice given to the drawer that the check has been dishonored.
Full Payment: If the amount of the check has been paid within the five banking days from notice of dishonor.
Lack of Knowledge: If it can be proven that the issuer had no knowledge of insufficient funds.

Practical Implications

Given the severe penalties, it is crucial for anyone engaged in transactions involving checks to ensure that sufficient funds are available in the account. Consulting a legal advisor can provide specific guidance on how to best navigate any BP22-related issues.

Conclusion

BP22 serves as a reminder of the legal obligations tied to the issuance of checks and the consequences of violating these obligations. Understanding the provisions of BP22 can help individuals and corporations alike to navigate the complexities of financial transactions involving checks more responsibly.