Sample Notice of Dishonor

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The letter is a formal notice of dishonor and demand to pay for five bounced checks totaling PHP 189,641.95 issued to Commonwealth Insurance Company.

The five checks were issued to pay bonds and insurance policies. Check 1 was for PHP 66,426.84, check 2 was for PHP 41,212.99, check 3 was for PHP 33,414.94, check 4 was for PHP 29,587.18 and check 5 was for PHP 41,879.69.

All five checks were dishonored - check 1 for insufficiency of funds, check 2 for closed account, and checks 3-5 for closed account as well.

19 February 2020

Re: Consolidated Notice of Dishonor and Demand to Pay

The firm writes for and in behalf of its client to formally advise you on the dishonor of your
checks and demand that you pay the corresponding value thereof.

I. Check Number 6046407675

You issued a post-dated check in favor of and payable to Commonwealth Insurance Company,
specifically Union Bank check number 6046407675 under account number 003-100-00026-0 in
the amount of Sixty Six Thousand Four Hundred Twenty Six Pesos and 84/100 (Php. 66,426.84),
which is due to mature on August 9, 2019. The check was issued in payment of your obligation
to the company, specifically your fee for the following bonds:

1. Performance Bond under Bond No. / Endorsement No. G(13)A001025537;


2. Performance Bond under Bond No. / Endorsement No. G(13)A001025538;
3. Performance Bond under Bond No. / Endorsement No. G(13)A001025539;
4. Performance Bond under Bond No. / Endorsement No. G(13)A001025540;
5. Performance Bond under Bond No. / Endorsement No. G(13)A001025540;
6. Warranty Bond under Bond No. / Endorsement No. G(41)001012532;
7. Warranty Bond under Bond No. / Endorsement No. G(41)001012533;
8. Warranty Bond under Bond No. / Endorsement No. G(41)001012534;
9. Warranty Bond under Bond No. / Endorsement No. G(41)001012535;
10. Contractor All Risk Insurance under Policy No. / Endorsement No. CAR023913; and
11. Performance Bond under Bond No. / Endorsement No. G(13)A001028481.

At the time of issuance, you guaranteed that you have sufficient funds in your account to cover
the amount of the subject check. Had you not made said assurance, our client would not have
agreed to issue the above-listed bonds to your benefit and utilization. Verily, our client trusted,
relied and was induced by your representation, which is why it parted with its goods and
services.

Unfortunately, upon its presentation with the drawee bank on August 13, 2019, said check was
dishonored and returned due to insufficiency of funds. Hence, to its damage and prejudice, our
client remains to be unpaid up to this time with respect to said bonds.

II. Check Number 6046407662

You issued a post-dated check in favor of and payable to Commonwealth Insurance Company,
specifically Union Bank check number 6046407662 under account number 003-100-00026-0 in
the amount of Forty One Thousand Two Hundred Twelve Pesos and 99/100 (Php. 41,212.99),
which is due to mature on September 25, 2019. The check was issued in payment of your
obligation to the company, specifically your fee for the following bonds:

1. Advance Payment Bond under Bond No. / Endorsement No. G(40)001017429;


2. Advance Payment Bond under Bond No. / Endorsement No. G(40)001017430;
3. Advance Payment Bond under Bond No. / Endorsement No. G(40)001017431; and
4. Performance Bond under Bond No. / Endorsement No. G(13)A001028491.
At the time of issuance, you guaranteed that you have sufficient funds in your account to cover
the amount of the subject check. Had you not made said assurance, our client would not have
agreed to issue the above-listed bonds to your benefit and utilization. Verily, our client trusted,
relied and was induced by your representation, which is why it parted with its goods and
services.

Unfortunately, upon its presentation with the drawee bank on September 28, 2019, said check
was dishonored and returned due to account closed. Hence, to our client’s damage and
prejudice, it remains to be unpaid up until this time as regards said bonds.

III. Check Number 6050825358

You issued a post-dated check in favor of and payable to Commonwealth Insurance Company,
specifically Union Bank check number 6050825358 under account number 00-310-000026-0 in
the amount of Thirty Three Thousand Four Hundred Fourteen Pesos and 94/100 (Php.
33,414.94), which is due to mature on September 27, 2019. The check was issued in payment of
your obligation to the company, specifically your fee for the following bonds:

1. Performance Bond under Bond No. / Endorsement No. G(13)A001028485;


2. Performance Bond under Bond No. / Endorsement No. G(13)A001036877;
3. Performance Bond under Bond No. / Endorsement No. G(13)A001036878; and
4. Advance Payment Bond under Bond No. / Endorsement No. G(40)001017426.

At the time of issuance, you guaranteed that you have sufficient funds in your account to cover
the amount of the subject check. Had you not made said assurance, our client would not have
agreed to issue the above-listed bonds to your benefit and utilization. Verily, our client trusted,
relied and was induced by your representation, which is why it parted with its goods and
services.

Unfortunately, upon its presentation with the drawee bank on September 28, 2019, said check
was dishonored and returned due to account closed. Hence, to our client’s damage and
prejudice, up until this time, it remains to be unpaid as regards said bonds.

IV. Check Number 6050825434

You issued a post-dated check in favor of and payable to Commonwealth Insurance Company,
specifically Union Bank check number 6050825434 under account number 00-310-000026-0 in
the amount of Six Thousand Seven Hundred Seven Pesos and 50/100 (Php. 6,707.50), which is
due to mature on October 8, 2019. The check was issued in payment of your obligation to the
company, specifically your fee for Warranty Bond under Bond No. / Endorsement No.
G(41)001012540.

At the time of issuance, you guaranteed that you have sufficient funds in your account to cover
the amount of the subject check. Had you not made said assurance, our client would not have
agreed to issue the foregoing bond to your benefit and utilization. Verily, our client trusted,
relied and was induced by your representation, which is why it parted with said product.

Unfortunately, upon its presentation with the drawee bank on January 24, 2020, said check was
dishonored and returned due to account closed. Hence, to our client’s damage and prejudice,
up until this time, it remains to be unpaid as regards said warranty bond.

V. Check Number 6050825455


You issued a post-dated check in favor of and payable to Commonwealth Insurance Company,
specifically Union Bank check number 6050825455 under account number 00-310-000026-0 in
the amount of Forty One Thousand Eight Hundred Seventy Nine Pesos and 69/100 (Php.
41,879.69), which is due to mature on November 20, 2019. The check was issued in payment of
your obligation to the company, specifically your fee for the following bonds:

5. Warranty Bond under Bond No. / Endorsement No. G(41)001014841; and


6. Contractor All Risk Insurance under Policy No. / Endorsement No. CAR023914.

At the time of issuance, you guaranteed that you have sufficient funds in your account to cover
the amount of the subject check. Had you not made said assurance, our client would not have
agreed to issue the above-listed bonds to your benefit and utilization. Verily, our client trusted,
relied and was induced by your representation, which is why it parted with its product and
services.

Unfortunately, upon its presentation with the drawee bank on January 24, 2020, said check was
dishonored and returned due to account closed. Hence, to our client’s damage and prejudice,
up until this time, it remains to be unpaid as regards said bonds.

Please note that the acts you have committed, as above narrated, constitute the crime of
Estafa under Article 315, paragraph 2(d) of the Revised Penal Code in relation to Republic Act
No. 4885 as well as a direct violation of Batas Pambansa Bilang 22, which is likewise a criminal
act.

For your ready reference, Article 315, paragraph 2(d) of the Revised Penal Code, as amended by
Republic Act No. 10951, states:

“Article 315. Swindling (Estafa) –

Any person who shall defraud another by any of the means mentioned hereinbelow shall
be punished by:

xxx

By post-dating a check, or issuing a check in payment of an obligation when the offender


had no funds in the bank, or his funds therein were not sufficient to cover the amount
of the check. The failure of the drawer of the check to deposit the amount necessary to
cover his check within three (3) days from receipt of notice from the bank and/or the
payee or holder that said check has been dishonored for lack or insufficiency of funds
shall be prima facie evidence of deceit constituting false pretense or fraudulent acts.”

The foregoing offense carries with it the penalty of prision mayor in its medium period or an
imprisonment term of 8 years and 1 day to 10 years.

On the other hand, as you may already know, B.P 22 punishes any person who makes or draws
and issues any check to apply on account or for value, knowing 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, which check is subsequently dishonored by the drawee bank for
insufficiency of funds or credit or would have been dishonored for the same reason had not the
drawer, without any valid reason, ordered the bank to stop payment.

THEREFORE, in view of the foregoing, demand is hereby made upon you to pay in full our client
Commonwealth Insurance Company within Five (5) banking days from receipt hereof the
amount of One Hundred Eighty Nine Thousand Six Hundred Forty One Pesos & 95/100 (Php.
189,641.95) representing the amount of the five bounced checks you issued. Needless to state,
your failure to comply with this first and final demand is deemed by law as prima facie evidence
of deceit constituting false pretense or fraudulent act, thus giving ripe to criminal prosecution.

Please take due notice hereof and govern yourself accordingly.

Respectfully yours,

For the firm:

via personal service


Received by: _________________
Date: _________________

or

via registered mail with return card


Post Office: _________________
Registry Receipt #_________________
Date: _________________

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