Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 818)
The main purpose of Presidential Decree No. 818 is to amend Article 315 of the Revised Penal Code by increasing the penalties for estafa committed by means of bouncing checks in order to curb such criminal acts and protect the integrity of commercial transactions and the banking system.
Presidential Decree No. 818 specifically addresses estafa (swindling) committed by means of bouncing checks.
If the amount of the fraud is over 12,000 pesos but does not exceed 22,000 pesos, the penalty prescribed is reclusion temporal.
If the fraud amount exceeds 22,000 pesos, the penalty of reclusion temporal is imposed in its maximum period, adding one year for each additional 10,000 pesos, but the total penalty shall not exceed 30 years. The penalty in such cases shall be termed reclusion perpetua in connection with accessory penalties under the Revised Penal Code.
The penalty is prision mayor in its maximum period if the fraud amount is over 6,000 pesos but does not exceed 12,000 pesos.
If the fraud amount is over 200 pesos but does not exceed 6,000 pesos, the penalty is prision mayor in its medium period.
The penalty is prision mayor in its minimum period if the amount involved in the fraud does not exceed 200 pesos.
Presidential Decree No. 818 took effect immediately upon its promulgation on October 22, 1975.
Paragraph 2(d) of Article 315 of the Revised Penal Code, as amended, defines estafa committed by means of false pretenses or fraudulent acts, which include issuing bouncing checks.
An upsurge of estafa cases committed by means of bouncing checks that threatened confidence in negotiable instruments and commercial transactions, potentially undermining trade, commerce, and the banking system.