DSLaw Criminal Law Series

MY FRIEND BORROWED MONEY AND ISSUED A BOUNCING CHECK. HOW CAN I RECOVER MY MONEY [Understanding the Bouncing Checks Law]

Borrowing money from a friend is a popular resort when one is in need. A creditor would usually ask for some kind of guarantee in the form of a check. If the debtor-friend obliged and issued a check which later on bounced, how can the creditor recover the money?

The Bouncing Checks Law[1] is your ally. It punishes the issuance of a bouncing check and not the purpose for which it was issued, nor the terms and conditions relating to its issuance.[2]
The law provides for certain elements, to wit:

a. the accused makes, draws, or issues any check to apply to account or for value;

b. the accused knows 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; and

c. the check is subsequently dishonored by the drawee bank for insufficiency of funds or credit or would have been dishonored for the same reason had not the drawer, without any valid reason, ordered the bank to stop payment.[3]

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[1] B.P. Blg. 22, (1979).

[2] Wong v. Court of Appeals, G.R. No. 117857, (2001).

[3] People v. Flores, G.R. Nos. 146921-22, (2002).

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