Philippine Deposit Insurance Corporation Act: By: PONCE, Enrico and VALMORES, Gay Valerie
Philippine Deposit Insurance Corporation Act: By: PONCE, Enrico and VALMORES, Gay Valerie
CORPORATION ACT
By: PONCE, Enrico and
VALMORES, Gay Valerie
A. Basic Policy
B. Main Functions
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be kept with the Bangko Sentral ng Pilipinas, with the Philippine
National Bank, or with any other bank designated as depository or
fiscal agent of the Philippine government.
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Rules of Court but shall not, with the exception of administrative
expenditures, pay or commit any act that will involve the transfer or
disposition of any asset of the institution: Provided, That the
receiver may deposit or place the funds of the institution in non-
speculative investments. The receiver shall determine as soon as
possible, but not later than ninety (90) days from take over, whether
the institution may be rehabilitated or otherwise placed in such a
condition so that it may be permitted to resume business with
safety to its depositors and creditors and the general public:
Provided, That any determination for the resumption of business of
the institution shall be subject to prior approval of the Monetary
Board.
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be exempt from any order of garnishment, levy, attachment,
or execution.
The actions of the Monetary Board taken under this SEC or under
SEC 29 of this Act shall be final and executory, and may not be
restrained or set aside by the court except on petition for certiorari
on the ground that the action taken was in excess of jurisdiction or
with such grave abuse of discretion as to amount to lack or excess
of jurisdiction. The petition for certiorari may only be filed by the
stockholders of record representing the majority of the capital stock
within ten (10) days from receipt by the board of directors of the
institution of the order directing receivership, liquidation or
conservatorship.
C. Insured Deposits
(Sec.4g) The 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, but not to exceed P500,000.00.
D. Liability to Depositors
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responsible for the delay, to imprisonment from six (6) months to one (1)
year. The period shall not apply if the validity of the claim requires the
resolution of issues of facts and or law by another office, body or agency
including the case mentioned in the first proviso or by the PDIC together
with such other office, body or agency.
Any obligation of a bank, which is, payable at the office of the bank
located outside of the Philippines shall not be a deposit or included as part
of the total deposits or of insured deposit. Subject to the approval of the
Board of Directors, any insured bank which is incorporated under the laws
of the Philippines which maintains a branch outside the Philippines may
elect to include for insurance its deposit obligations payable only at such
branch.
4. Liability for Contents of Safety Box
Not liable – the Bank has no way of
knowing what a depositor places in his security deposit box.
The PDIC shall commence the determination of insured deposits due the
depositors of a closed bank upon its actual takeover of the closed bank.
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subject to the maximum insured deposit of P250,000.00.
Mode of
Payments (Sec.14)
Payment shall be made by cash or transferred deposit.
Transferred Deposit. Deposit in another insured bank in an amount equal
to insured deposit of such depositor.
(Sec. 14)
The PDIC, in its discretion, may require proof of claims
to be filed before paying the insured deposits, and that in any case where
the PDIC is not satisfied as to the viability of a claim for an insured deposit,
it may require final determination of a court of competent jurisdiction
before paying such claim.
Failure to settle the claim, within six (6) months from the date of
filing of claim for insured deposit, where such failure was due to grave
abuse of discretion, gross negligence, bad faith, or malice, shall, upon
conviction, subject the directors, officers or employees of the PDIC
responsible for the delay, to imprisonment from six (6) months to one (1)
year.
(Sec.16 (e))
If the depositor in the closed bank shall fail to claim
his insured deposits with the Corporation within two (2) years from actual
takeover of the closed bank by the receiver, or does not enforce his claim
filed with the corporation within two (2) years after the two-year period to
file a claim as mentioned hereinabove, all rights of the depositor against the
Corporation with respect to the insured deposit shall be barred; however, all
rights of the depositor against the closed bank and its shareholders or the
receivership estate to which the Corporation may have become subrogated,
shall thereupon revert to the depositor. Thereafter, the Corporation shall be
discharged from any liability on the insured deposit.
G. Prohibitions
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thirty (30) days immediately preceding or during a bank-declared
bank holiday, or immediately preceding a closure order issued by the
Monetary Board of the Bangko Sentral ng Pilipinas for the purpose
of availing of the maximum deposit insurance coverage.