Bouncing Checks. BP Blg. 22 Notice of Dishonor Requirement

FACTS: Clemenza issued a check to Don Barzini in payment for some prior obligations of the family. However when Don Barzini deposited the check in the bank, the same bounced due to insufficient funds. Affronted, Don Barzini wanted to send Clemenza to go sleep with the fishes, but his consigliere prevailed upon him to file a case in for violation of Batas Pambansa Blg. 22 instead, in order to preserve peace between their families. Don Barzini assented but insisted that the case be filed right away.

ISSUE: Will the case prosper, considering that the check was indeed issued for a consideration and later bounced?

HELD: The case will be dismissed. Don Barzini failed to prove that Clemenza knows that at the time of issue that he does not have sufficient funds in or credit with the drawee bank for the payment of the check in full upon its presentment. Don Barzini did not serve a notice of dishonor to Clemenza in order that a presumption of such knowledge would arise against the latter. 

The elements of the crime are, as follows: 

(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) the 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.

The first and last elements are relatively easier to establish as compared to the second element, which is a state of mind of the accused. It is difficult to prove that the issuer of the bounced check knows that he does not have sufficient funds for the payment of the check in full upon its presentment.

Hence, Section 2 of B.P. Blg. 22 creates a presumption of knowledge of insufficiency of funds under the following circumstances:  

Sec. 2. 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 ninety days from the date of the check, shall be prima facie evidence of knowledge of such insufficiency of funds or credit unless such maker or drawer pays the holder thereof the amount due thereon, or makes arrangements for payment in full by the drawee of such check within five (5) banking days after receiving notice that such check has not been paid by the drawee.