Bouncing Checks Law (Batas Pambansa Blg. 22 or BP 22) is a Philippine criminal statute enacted in 1979 that penalizes the issuance of checks without sufficient funds or credit. In real estate transactions involving post-dated checks (PDCs), BP 22 creates serious legal consequences for buyers whose checks are dishonored, making it critical for both buyers and sellers to understand its provisions.

Definition

BP 22 criminalizes the act of issuing a check that bounces due to insufficient funds, lack of credit, or a closed account. The law treats dishonored checks as a form of deceit that undermines confidence in the Philippine banking system and commercial transactions.

Unlike ordinary debt, which cannot result in imprisonment under the Philippine Constitution, BP 22 punishes the act of issuing a worthless check—not the failure to pay the underlying debt. This makes it a malum prohibitum (wrong because prohibited by law), where good faith is generally not a valid defense.

Elements of the Offense

For a BP 22 violation, prosecutors must prove all four elements:

Element	Description
1. Issuance of Check	The accused made, drew, and issued a check for value or on account
2. Knowledge of Insufficiency	At issuance, the drawer knew funds were insufficient to cover the check
3. Dishonor by Bank	The check was presented within 90 days and dishonored for insufficient funds
4. Failure to Pay After Notice	The drawer failed to pay within 5 banking days after receiving written notice of dishonor

Important: All four elements must be present. Failure to prove any element results in acquittal of criminal charges (though civil liability may remain).

Penalties Under BP 22

Section 1 of BP 22 prescribes the following penalties per dishonored check:

Penalty Type	Range
Imprisonment	30 days to 1 year
Fine	Not less than check amount, not more than double the amount (maximum PHP 200,000)
Both	Imprisonment and fine at court's discretion

Additional Consequences:

Civil Liability: Face value of check plus interest, damages, and attorney's fees
Subsidiary Imprisonment: If fine is unpaid, 1 day imprisonment per PHP 8 of fine
Bank Blacklisting: Offenders may be reported to BSP and blacklisted by banks
Corporate Officers: Signatories on corporate checks are personally liable

Under Administrative Circular No. 12-2000, courts may impose fines instead of imprisonment if the offender pays the check amount plus 2% monthly interest from due date until full payment.

The 90-Day and 5-Day Rules

Two critical timeframes govern BP 22 cases:

90-Day Presentment Rule

The check must be presented for payment within 90 days from the date appearing on the check. Presentment beyond this period may negate criminal liability (though civil recovery remains possible).

5-Banking-Day Grace Period

After receiving written notice of dishonor, the drawer has 5 banking days to:

Pay the full amount of the check, OR
Make arrangements for payment with the drawee bank

Payment within this grace period extinguishes criminal liability. This is the most important defense available to accused parties.

BP 22 in Real Estate Transactions

In Philippine real estate, buyers routinely issue 24 to 60 post-dated checks covering their equity payments or amortization schedule. Each dishonored PDC constitutes a separate BP 22 violation.

Risk Scenarios for Buyers:

Job loss or income reduction during the equity period
Unexpected expenses depleting bank balances
Forgetting to fund the account before check dates
Bank account closure or freeze

Developer/Seller Obligations:

Send written notice of dishonor to the buyer's last known address
Allow the 5-banking-day grace period before filing charges
Document all notices and communications

Buyer Protections:

The Maceda Law provides grace periods and refund rights for buyers who have paid at least 2 years of installments
Novation (replacing the obligation with a new agreement) may extinguish BP 22 liability
Payment before filing of information bars prosecution

Defenses Against BP 22 Charges

Defense	Explanation
Payment Within Grace Period	Full payment within 5 banking days after notice extinguishes liability
No Written Notice	Absence of proper written notice invalidates the presumption of knowledge
Check Not for Value	Check issued as memorandum only, not for an actual transaction
Novation/Settlement	Original obligation replaced by new agreement
Prescription	Offense prescribes in 4 years from date drawer could have been charged
Presentment Beyond 90 Days	Late presentment may negate criminal liability

Note: Good faith or lack of intent to defraud is generally NOT a valid defense because BP 22 is malum prohibitum.

Practical Guidance

For Buyers Issuing PDCs:

Maintain a dedicated bank account for PDC payments
Set up automatic transfers or calendar reminders before each check date
Monitor your payment schedule through developer portals
Immediately communicate with the seller if you anticipate funding issues
Request restructuring or replacement checks before dishonor occurs

For Developers/Brokers:

Implement payment tracking systems to monitor upcoming PDC dates
Send courtesy reminders before check deposit dates
Follow proper notice procedures before filing BP 22 cases
Consider settlement or restructuring before pursuing criminal charges
Document all communications in audit trails

Bouncing Checks Law