Law Summary
Prima Facie Evidence of Knowledge of Insufficient Funds
- Dishonor of a check due to insufficient funds within 90 days from its date is prima facie evidence of the issuer's knowledge of insufficiency.
- The issuer may rebut this presumption by paying the holder within 5 banking days after notice or making full payment arrangements with the drawee bank.
Duties of the Drawee Bank; Evidence in Prosecution
- Drawee banks must indicate clearly on dishonored checks or notices the reason for refusal to pay.
- Insufficiency of funds or credit must be explicitly stated.
- Such evidence is prima facie proof of issuance, presentation, and valid dishonor of the check.
- Even if a stop payment order is received, the bank must state insufficiency if it is the factual reason for dishonor.
Definition of Credit
- "Credit" refers to any arrangement or understanding with the bank that assures payment of the check.
Interaction with the Revised Penal Code
- Prosecution under this law does not preclude liability under the Revised Penal Code for related offenses.
Separability Clause
- If any part of the Act is declared unconstitutional, other provisions remain effective.
Effectivity of the Act
- The Act takes effect fifteen days after its publication in the Official Gazette.