Penalizing issuance of checks without funds

Section 1 provides a penalty of imprisonment of not less than thirty days but not more than one (1) year for covered offenses.
Section 1 provides a penalty of a fine of not less than (and not more than) double the amount of the check, with the fine in no case exceed Two Hundred Thousand Pesos.
Section 1 authorizes both fine and imprisonment at the discretion of the court.

Section 2 provides that refusal by the drawee bank of a check due to insufficient funds or credit, when presented within ninety (90) days from the date of the check, is prima facie evidence of knowledge of such insufficiency of funds or credit.
Section 2 provides that prima facie evidence does not apply if the maker or drawer pays the holder the amount due or makes arrangements for payment in full by the drawee within five (5) banking days after receiving notice that the check was not paid by the drawee.

Section 3 imposes a duty on the drawee: when refusing to pay a check upon presentment, the drawee must cause the reason for dishonor or refusal to be written, printed, or stamped in plain language on the check or attached thereto.
Section 3 requires that where there are no sufficient funds in or credit with the drawee bank, the notice of dishonor or refusal must explicitly state that fact.
Section 3 provides that in prosecutions under the Act, introduction in evidence of an unpaid and dishonored check bearing or having attached the drawee’s written/stamped refusal reason constitutes prima facie evidence of: (a) making or issuance, (b) due presentment to the drawee, (c) dishonor, and (d) proper dishonor for the reason written/stamped/attached by the drawee.
Section 3 provides that notwithstanding receipt of an order to stop payment, the drawee must state in the notice that there were no sufficient funds in or credit for payment in full, if such is the fact.

Section 4 defines the word “credit” as an arrangement or understanding with the bank for the payment of the check.

Section 5 provides that prosecution under this Act is without prejudice to liability for violation of any provision of the Revised Penal Code.

Section 6 provides that if any separable provision is declared unconstitutional, the remaining provisions continue in force.
Section 7 provides that the Act takes effect fifteen (15) days after publication in the Official Gazette.
The Act was approved on April 3, 1979.