BP 22, April 3, 1979
I.HOW VIOLATED
A.DRAWING CHECK WITHOUT SUFFICIENT FUNDS (Sec. 1)
- A person makes or draws and issues any check
- The check is made or drawn and issued to apply on account or for value
- The person who makes or draws and issues the check 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
- The check is subsequently dishonoured by the drawee bank for insufficiency of funds or credit, or would have been dishonoured for the same reason had not the drawer, without any valid reason, ordered the bank to stop payment
B.FAILING TO KEEP SUFFICIENT FUNDS (Sec. 1, par. 2)
- A person has sufficient funds in or credit with the drawee bank when he makes or draws and issues a check
- He fails to keep sufficient funds or to maintain a credit to cover the full amount of the check if presented within 90 days from the date appearing
- The check is dishonoured by the drawee bank
II.EVIDENCE OF KNOWLEDGE OF INSUFFICIENT FUNDS (Sec. 2)
The making, drawing and issuance of a check payment of which is refused by the drawee because of insufficient funds in or credit with such bank, when presented within ninety (90) days from the date of the check, shall be prima facie evidence of knowledge of such insufficiency of funds or credit UNLESS such maker or drawer pays the holder thereof the amount due thereon, or makes arrangements for payment in full by the drawee of such check within (5) banking days after receiving notice that such check has not been paid by the drawee
III.DUTY OF DRAWEE (Sec. 3)
It shall be the duty of the drawee of any check, when refusing to pay the same to the holder thereof upon presentment, to cause to be thereon, or attached thereto, the written, printed, or stamped in plain languagereason for drawee's dishonor or refusal to pay the same: Provided, That where there are no sufficient funds in or credit with such drawee bank, such fact shall always be explicitly stated in the notice of dishonor or refusal. In all prosecutions under this Act, the introduction in evidence of any unpaid and dishonored check, having the drawee's refusal to pay stamped or written thereon or attached thereto, with the reason therefor as aforesaid, shall be prima facie evidence of the making or issuance of said check, and the due presentment to the drawee for payment and the dishonor thereof, and that the same was properly dishonored for the reason written, stamped or attached by the drawee on such dishonored check.
Not with standing receipt of an order to stop payment, the drawee shall state in the notice that there were no sufficient funds in or credit with such bank for the payment in full of such check, if such be the fact.
