Professional Documents
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properties, owned or held in trust by, or pertaining to, the Government or any of its
subdivisions, agencies or instrumentalities, including government-owned and controlled
corporations with original charters. (See Art. IX-D, 1987 Constitution and Pres. Dec. No. 1445)
(j) The Presidential Commission on Good Government, in the conduct of its
investigations to recover ill gotten wealth accumulated by former President
Ferdinand E. Marcos, his immediate family, relatives, subordinates and close
associates, may issue subpoenas requiring the attendance and testimony of witnesses and/or
the production of books, papers, contracts, records, statement of accounts and other
documents. (Sec. 3 [e], Exec. Order No. 1 [1986])
(iv)
(a)
(b)
Authorized Disclosures
Disclosures by authorized and responsible bank officials are allowed in the following instances:
(i) reporting of unclaimed balances to the Treasurer of the Philippines (Secs. 1 & 2,
Act No. 3936);
(ii) turn-over to the Commissioner of Internal Revenue of the amount in bank
accounts as may be sufficient to satisfy the writ of garnishment issued to collect
delinquent taxes (Secs. 205 & 208, Rep. Act No. 8424); and
(iii) submission of report, and turn-over to, the court officer or executing sheriff of
garnished amounts pursuant to a writ of garnishment in satisfaction of a judgment
(Sec. 9[c], Rule 39, Rules of Court; See China Banking Corporation v. Ortega, 49 SCRA 355
[1973]).
(iv) disclosure by a bank officer or employee upon order of the court in connection
with a deposit in a closed bank that was used in the perpetration of anomalies .
(Soriano v. Manuzon, C.A. G.R.-S.P No. 8763415)
Penalties for Violation of Republic Act No. 1405 will subject the offender, upon conviction, to the
following penalties:
(i) imprisonment of not more than five years;
(ii) fine of not more than P20,000.00; or
(iii) both imprisonment and fine.
Penalties
Violation of Republic Act No. 6426 shall subject the offender, upon conviction, to the following
penalties:
(i) imprisonment of not less than one (1) year but not more than five (5) years; or
(ii) fine of not less than Five Thousand Pesos (P5,000.00) but not more than Twenty Five Thousand
Pesos (P25,000.00); or
(iii) both imprisonment and fine.
The following sanctions may also be imposed against a bank or any bank director and
officer for violation of the provisions of Republic Act No. 6426 and Bangko Sentral regulation issued
pursuant to said law:
(i) revocation of the authority of the bank to accept new foreign currency deposits; and
(ii) administrative sanctions provided under Section 37 of the New Central Bank Act (Rep. Act No.
7653), as may be applicable.
shall include credits or deposits of money, bullion, security or other evidence of indebtedness
of any kind, and interest thereon
2. with banks, buildings and loan associations, and trust corporations, as hereinafter defined,
3. in favor of any person known to be dead or who has not made further deposits or withdrawals
4. during the preceding ten years or more.
Such unclaimed balances, together with the increase and proceeds thereof, shall be deposited with the
Treasurer of the Philippines to the credit of the Government of the Republic of the Philippines to be
used as the National Assembly may direct.
Accounts or transactions covered:
1. Credits
2. Deposits
3. Related and analogous credits arising from deposits
a. Cashiers checks or managers checks
b. Certified check
c. Demand drafts
d. Telegraphic or cable transfers
e. Accounts payable
f. Trust and fiduciary accounts
g. Investment management accounts
4. Bullions
5. Securities or other evidences of indebtedness
6. Bills payable-deposit substitutes
Transactions not covered:
1. Balances that do not qualify as credits owing from the bank
Demand drafts or checks not presented or delivered. Mere issuance of a check including
managers check does not ipso fact work as an automatic transfer of funds to the account
of the payee.
2. Credits not arising from regular banking transactions
-unclaimed salaries, wages, and bonuses deposited in the bank in its capacity as an employer
-excess in loan repayments and funds erroneously paid to the bank
PROCEDURE
1.
Immediately after the taking effect of this Act and within the month of January of every
odd year, all banks, building and loan associations, and trust corporations shall forward to the
Treasurer of the Philippines a statement, under oath, of their respective managing
officers, of all credits and deposits held by them in favor of persons known to be
dead, or who have not made further deposits or withdrawals during the preceding
ten years or more, arranged in alphabetical order according to the names of
creditors and depositors, and showing:
"(a) The names and last known place of residence or post office addresses of the persons in
whose favor such unclaimed balances stand;
"(b) The amount and the date of the outstanding unclaimed balance and whether the same is
in money or in security, and if the latter, the nature of the same;
"(c) The date when the person in whose favor the unclaimed balance stands died, if known, or
the date when he made his last deposit or withdrawal; and
"(d) The interest due on such unclaimed balance, if any, and the amount thereof.
2.
3.
4.
5.
"A copy of the above sworn statement shall be posted in a conspicuous place in the
premises of the bank, building and loan association, or trust corporation concerned
for at least sixty days from the date of filing thereof:
Provided, That immediately before filing the above sworn statement, the bank, building and
loan association, and trust corporation shall communicate with the person in whose
favor the unclaimed balance stands at his last known place of residence or post
office address.
Reclassify and transfer the unclaimed balances to the liability account due to the Treasurer of
the Philippines
Upon receipt of the report of unclaimed balances from the Treasurer, the Solicitor General is
mandated to institute escheat proceedings- RTC of the province or city where the institution is
located. The institution must be joined as parties.
"It shall be the duty of the Treasurer of the Philippines to inform the Solicitor General from
time to time the existence of unclaimed balances held by banks, building and loan associations,
and trust corporations.
Any bank, building and loan association or trust corporation which shall make any deposit with the
Treasurer of the Philippines in conformity with the provisions of this Act shall not thereafter be
liable to any person for the same and any action which may be brought by any person
against in any bank, building and loan association, or trust corporation for unclaimed
balances so deposited with the Treasurer of the Philippines shall be defended by the Solicitor
General without cost to such bank, building and loan association or trust corporation."
Escheat
The power of a state to acquire title to property for which there is no owner.
Reactivation
-remedy available after the unclaimed deposits are reported to the Treasurer but before actual
turnover by virtue of court order in the escheat proceedings.
-at this point, the account is still existing but reclassified as due to the Treasurer of the Philippines
-after escheat: the account is terminated and turned over to the treasure, and reactivation is no longer
possible
Failure to file statement will subject the institution to penalties
Membership of banks to PDIC is mandatory; hence, all operating banks are members of
PDIC.
Except for the exclusions stipulated in RA 9576, deposits of all commercial banks, savings and
mortgage banks, rural banks, private development banks, cooperative banks, savings and
loan associations, as well as branches and agencies in the Philippines of foreign banks and
all other corporations authorized to perform banking functions in the Philippines, are
insured with PDIC. As for Philippine banks with branches outside the country, RA 9576 stipulates
that subject to the approval of the Board of Directors, any insured bank with branch outside the
Philippines may elect to include for insurance its deposit obligations payable at such
branch.
Foreign currency deposits are also insured by PDIC pursuant to RA 6426 (An act instituting a
foreign currency deposit system in the Philippines, and for other purposes) and Central Bank (CB)
Circular No. 1389. Depositors may receive payment in the same currency in which the insured deposit
is denominated.
The PDIC Charter provides that the deposits in branches and subsidiaries of foreign banks
licensed by the Bangko Sentral ng Pilipinas (BSP) to perform banking functions in the Philippines
are insured by the PDIC.
Deposits under the charter of PDIC
1. Unpaid balance of money or its equivalent
2. Received by a bank in the usual course of business
3. And for which it has given or is obliged to give credit to a commercial, checking, savings, time,
or thrift account, or issued in accordance with the BSP rules and regulations and other
applicable laws.
Insured deposit
-any amount due to any bona fide depositor for legitimate deposits in an insured bank net of any
obligation of the depositor to the insured bank as of date of closure.
Types of deposits covered:
a.) savings,
b.) special savings
c.) demand/checking negotiable order of withdrawal
d.) certificate of time deposits
Types of deposit accounts covered:
a. Single account-individually owned accounts under one name, natural or juridical
-If several accounts of different types are held by one person in the same bank, all accounts
will be consolidated or added together as they are maintained in the same right and capacity,
regardless of account type. Total amount insured cannot exceed Php500,000
-Single account is insured separately to a maximum of Php500,000
b. Joint account- accounts held under more than one name
-Each joint account is considered equally shared among co-depositors unless otherwise
indicated in the deposit document. Insurance coverage of Php 500,000 will apply to the sum
shares of a depositor in the insured portion of each joint account.
-Joint accounts held by a juridical person with a natural person will be presumed to belong to
the juridical person
c. Account By (example: Princess by Channing, Princess is the depositor)
d. In trust for (example: Princess in trust for Channing, Channing is the depositor)
e. for the account of another person ( example: Princess for the account of Channing, Channing
is the depositor)
Currency accounts covered: a.) peso; b.) foreign
Exclusions from deposit insurance coverage as stipulated in R.A. No. 9576:
-
PROCEDURE
1.
Depositors will be advised through the national and/or local media and posters at the premises
of the closed insured bank and other public places within the locality on the schedule of
distribution of claim forms by PDIC, receiving of claim forms by PDIC, and the prescriptive date
of filing claims by the depositors.
2.
3.
4.
The depositor of the closed insured bank has 24 months from date of bank takeover to file his
deposit insurance claim.
After lapse of 24 months - All rights of the depositor with respect to the insured deposit shall
no longer be honored. But he may still make a claim against the assets of the closed bank.
The claim for insured deposit should be settled within six (6) months from the date of filing
provided all requirements are met but the claim must be filed within twenty-four (24) months
after bank takeover. The six-month period shall not apply if the documents of the claimant are
incomplete or if the validity of the claim requires the resolution of issues of facts and law by
another office, body or agency, independently or in coordination with PDIC.
The length of time needed for the pre-settlement examination of deposit liabilities of a closed
insured bank largely depends on the completeness and accuracy of records turned over by the
Bank to PDIC and the number of deposit accounts to be examined.
If the closed bank is not rehabilitated or taken over by another bank, amount in excess of the
P500,000 coverage can still be claimed upon the final liquidation of the remaining assets of the
closed bank.
The claim may be filed with the Liquidator of the closed bank but payment of the said claim
will depend on the bank's available assets to settle its preferred claims (Government taxes,
labor claims, secured credits and trust funds) and approval of the Liquidation Court. The
schedule of payment beyond the P500,000.00 maximum insurance shall be based on priorities
set by law.
Group 3 members:
Bahina
Mendoza
Oja
Santos
Tidoso