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ATENEO DE MANILA LAW SCHOOL

BANKING LAW I OUTLINE1
DY FIRST SEMESTER, SY 2009-2010 2009

ATTY. ALEXANDER C. FRIDAY, 19 JUNE

I. GENERAL CONCEPTS
A. CONCEPT OF BANKING
1. Definition – Sec. 3.1, GBL2 2. Elements – Republic v. Security Credit and Acceptance Corporation , 19 SCRA 58 (1967); Central Bank v. Morfe, 20 SCRA 507 (1967); Bañas v. Asia Pacific Finance Corporation , 343 SCRA 527 (2000) a. Engaged in lending of funds b. Obtained in the form of deposits c. From the public, which shall mean 20 or more persons – Sec. 8.2, GBL

B. BANKING DISTINGUISHED FROM QUASI-BANKING
1. Elements of Quasi-Banking – Sec. 4, par. 3, GBL; xSec. X234, MRB3 a. Borrowing of funds for borrower’s own account b. From 20 or more lenders at any one time c. Through issuance, endorsement or assignment with recourse or acceptance of deposit substitutes – Sec. 95, NCBA4 d. For purposes of relending or purchasing of receivables and other obligations 2. Requirement of Separate License – Sec. 6, par. 1, GBL

C. BANKS DISTINGUISHED FROM OTHER FINANCIAL INSTITUTIONS
1

The Outline presents the manner by which Banking Law I will be taken up in class. The x's and those footnoted in the Outline represent cases or topics which need no extended discussions, either because the essence of the rulings are already summarized in the Outline or they contain similar rulings or doctrines as other cases to be discussed. 2 Republic Act No. 8791 (“General Banking Law of 2000”), which repealed Republic Act No. 337 (“General Banking Act”) 3 Manual for Regulation of Banks 4 Republic Act No. 7653 (“New Central Bank Act”), which repealed Republic Act No. 265 (“Central Bank Act”)

2 1. Investment Houses – xSecs. 2 and 3, Investment Houses Law5 2. Financing Companies – xSec. 3(a), Financing Company Act6 3. Investment Companies – xSec. 4, Investment Company Act7 4. Non-Stock Savings and Loans Associations – xSec. 3, Revised NonStock Savings and Loans Association Act of 1997 8 5. Cooperatives – xArt. 3, Cooperative Code9; But See xArt. 100, Cooperative Code 6. Insurance Companies – xSec. 2, Insurance Code10 D. NATURE OF BANKING BUSINESS – Sec. 2, GBL 1. Vital Role in Economy11 – Simex International (Manila) Inc. v. Court of Appeals, 183 SCRA 360 (1990) a. Subject to reasonable regulation by the State – Central Bank of the Philippines v. Court of Appeals, 208 SCRA 652 (1992) b. Strikes and Lockouts – Sec. 22, GBL; xBSP12 Circular No. 299 (Series of 2001); Article 263(g), Labor Code 2. Fiduciary Nature of Banking Business a. Degree of diligence required13 – Simex International (Manila) Inc. v. Court of Appeals, 183 SCRA 360 (1990); Bank of the Philippine Islands v. Intermediate Appellate Court, 206 SCRA 408 (1992) b. When utmost diligence required (i) In dealing with accounts of depositors 14 – Philippine Banking Corporation v. Court of Appeals , 419 SCRA 487 (2004); Bank of the Philippine Islands v. Casa Montessori Internationale , 430 SCRA 261 (2004) In selection and supervision of employees 15 – Philippine Commercial and International Bank v. Court of Appeals , 350

(ii)
5 6

Presidential Decree No. 129, as amended Republic Act No. 59080, as amended by Republic Act No. 8556 7 Republic Act No. 2629 8 Republic Act No. 8367 9 Republic Act No. 6938 10 Presidential Decree No. 612, as amended 11 Prudential Bank v. Lim, 474 SCRA 485 (2005) 12 Bangko Sentral ng Pilipinas 13 Solidbank Corporation/Metropolitan Bank and Trust Company v. Tan , 520 SCRA123 (2007) 14 Simex International (Manila) Incorporated v. Court of Appeals , 183 SCRA 360 (1990); Bank of the Philippine Islands v. Court of Appeals , 326 SCRA 641 (2000); Philippine Commercial International Bank v. Court of Appeals , 350 SCRA 446 (2001); Firestone Tire & Rubber Company of the Philippines v. Court of Appeals , 353 SCRA 601 (2001); Westmont Bank v. Ong, 375 SCRA 212 (2002); Traders Royal Bank v. Radio Philippines Network, Inc. , 390 SCRA 608 (2002); Consolidated Bank and Trust Corporation v. Court of Appeals , 410 SCRA 562 (2003)

Cabilzo. 2. Court of Appeals . Court of Appeals. Pike. Court of Appeals. 6. Inc. 379 SCRA 490 (2002) (iv) In the custody of documents. GBL 2.A. Operation – Sec. 328 SCRA 264 (2000). 6. GBL b. moral. 6. Applicability to government financial institutions – xGovernment Service Insurance System v. Premiere Development Bank v. 331 SCRA 267 (2000). 510 SCRA 259 (2006). Authority required – Sec. Court of Appeals . 173 SCRA 102 (1989) E. GBL a. Citytrust Banking Corporation v. But See Go v. 269 SCRA 695 (1997). 326 SCRA 425 (2000). Court of Appeals. AUTHORITY TO OPERATE 1. 475 SCRA 591 (2005). Javier & Sons. SLGT Holdings. Villanueva. 64. Court of Appeals . GBL d. Court of Appeals . v. Private Development Corporation of the Philippines v. . 17 and 46. Basco. par. Intermediate Appellate Court. Metropolitan Bank and Trust Company. 488 SCRA 517 (2006). Santiago. Sec. Inc. 462 SCRA 36 (2005) 15 Metropolitan Bank and Trust Company v.3 SCRA 446 (2001). GBL c. 512 SCRA 305 (2007) 17 See Also United Coconut Planters Bank v. Change in name – xP. MB18 determination – Sec. N. 363 SCRA 51 (2001) c. Citibank. Court of Appeals . Bank of America. 453 SCRA 630 (2005). Corporation Code. Inc. Philippine National Bank v. Incorporation – Secs. 437 SCRA 325 (2004) 18 Monetary Board . Liability for negligence (i) Rules on determination of negligence – Philippine Bank of Commerce v. par. Canlas v. 1. 536 SCRA 517 (2007). 459 SCRA 412 (2005) (v) Exception: does not cover transactions outside bank deposits – Reyes v. Court of Appeals . Omengan v. 40 SCRA 144 (1970). 361 SCRA 446 (2001) (ii) (iii) Right to recover against erring employee – xPacific Banking Corporation v. Cabamongan. Consolidated Bank and Trust Corporation v. 197 SCRA 22 (1991) 16 Development Bank of the Philippines v. Bancom Finance Corporation. Court of Appeals.C. Prudential Bank v. compensatory or temperate damages – Araneta v. 14. 410 SCRA 562 (2003) Award of actual. v. v. Unauthorized advertisement/ business representation – Sec. Court of Appeals. 414 SCRA 563 (2003) d. Philippine National Bank. integrity of records 17 – Heirs of Eduardo Manlapat v. 470 SCRA 328 (2005) (iii) To be mortgagees in good faith 16 – Cruz v.

MRB a. 129 . 29. MRB b. UNIVERSAL BANKS (UB) – Sec. CLASSIFICATION OF BANKS A.. Morfe. to Sec. 20 SCRA 502 (1957) II. xSec. GBL.2(b)..2(a). COMMERCIAL BANKS (KB) – Sec. GBL 1. 7. Sanctions for operating without authority – Sec. Republic v. KB powers – Sec. 1381. Security Credit and Acceptance Corporation. GBL (i) (ii) 19 Accepting drafts Issuing letters of credit (L/Cs) Rules and Regulations to Implement the Provisions of Presidential Decree No. Investment House powers – xSec. X101(b)(2). 101(b)(1).. 2(a). 4. X101(b)(1).e. 29.4 e. Governing Law – xGBL 2.e.e. guaranteeing distribution and sale) of securities of any kind issued by another corporation – xSec. 20 SCRA 507 (1967). X101(b)(2). in the underwriting ( i. 27. Powers – xSec. Monetary Board. Central Bank v. GBL 1. 19 SCRA 58 (1967). through a subsidiary) (iI) c. in rel. GBL. Investment Houses Law. xPerez v. Commercial Bank (KB) powers – xSec. GBL. xSEC Omnibus Rules and Regulations for Investment Houses and Universal Banks Registered as Underwriter of Securities (i) Definition/function of investment house – any enterprise which engages or purports to engage. To invest in equity of non-allied enterprises – xSec. Governing Law – xGBL 2. 6. xSec. xSec. par. 66. such functions shall be undertaken by separate department/unit UB cannot perform functions of investment house both directly (i. MRB B. through a separate department/unit) and indirectly (i. 23. Powers – Sec. Investment Houses Law. GBL. 3. 3. xSec. MRB a. whether regularly or on an isolated basis. IRR of Investment Houses Law19 Limitations on UB’s exercise of investment house powers – xSec. 3. MRB: (a) (b) (c) subject to pertinent laws and SEC regulations if investment house functions performed directly by UB.

For purposes of: 20 Republic Act No. 33. capital requirements. drafts.2(c). 74. 71. ownership. par. in rel. To purchase. 3.2(c). Governing Law – Sec. GBL d. 1 and 3. Engage in quasi-banking functions – xSec. and general conduct of business – xThrift Banks Act20 b. Other matters: GBL of suppletory application 3 4 2. Declaration of Policy – Sec. and other evidences of debt (iv) Accepting or creating demand deposits (i) Receiving other types of deposits and deposit substitutes (ii) Buying and selling foreign exchange and gold or silver bullion (iii) Acquiring marketable bonds and other debt securities (iv) Extending credit b. 51 and 52. act as managing agent. supervision. 7906 . THRIFT BANKS (TB) – Secs. 3. Net worth to risk assets ratio – xSec. GBL a. 3. evidences of indebtedness and all types of securities (iii) Make collections and payments for the account of others and perform such other services for their customers as are not incompatible with banking business (iv) Upon prior MB approval. GBL c. 53. to Sec. GBL. Other services – xSec. 2. 31 and 32. bills of exchange. To invest in equity of allied enterprises – xSecs. Organization. Thrift Banks Act 3. GBL 1 2 1. General Banking Act C. Thrift Banks Act a. Definition/Purpose – Sec. Composed of: (i) Savings and mortgage banks (ii) Stock savings and loans associations. hold and convey real estate – xSecs. GBL (i) (ii) Receive in custody funds. 1. adviser.5 (iii) Discounting and negotiating promissory notes (PNs). 3(a). documents and valuable objects Act as financial agent and buy and sell. par. 71. by order of and for the account of customers. shares. GBL e. consultant or administrator of investment management/advisory/ consultancy accounts (v) Rent out safety deposit boxes f. powers. and (iii) Private development banks b. Sec. GBL c. pars. 6. To issue guarantees – See xSec.

supervision. par. Rural Banks Act 3. ownership. 100. or notes arising out of commercial transactions (ii) Providing short-term working capital. X101(b)(3). pars. GBL 8 9 1. 1 and 3. 71. 2.2(d). 3. Governing Law – Sec. ISLAMIC BANKS (IB) – Sec. RURAL BANKS (RB) – Sec. xSec. 99. 10. Powers – Sec.and long-term financing. Other matters: GBL of suppletory application 10 2. Thrift Banks Act. a.2(e). Governing Law – Sec. Cooperative Code 11 3.2(f). MRB D. capital requirements. Powers – Sec. Powers: Same as RB – xSec. 3.6 (i) Accumulating savings of depositors and investing them in marketable bonds and other debt securities. Other matters: GBL of suppletory application 7 2. GBL 21 Republic Act No. 3. 1 and 3. cooperatives primarily to provide financial and credit services to cooperatives b. Governing Law – Sec. X101(b)(4). industry and housing (iii) Providing diversified financial and allied services for its chosen market and constituencies specially for small and medium enterprises and individuals 4. powers. bills of exchange. 2. GBL 12 13 1. ownership. Rural Banks Act. 7353 . capital requirements. MRB E. 99 to 109. 12. Definition/Functions – Art. 2. Cooperative Code b. Functions – xArt. powers. xSec. supervision. Cooperative Code a. to businesses engaged in agriculture. X101(b)(5). MRB F. 71. medium. the majority shares of which is owned and controlled by. GBL 5 6 1. Organization. Declaration of Policy – Art. 71. Definition: Organized by. Organization. 100 Cooperative Code 4. commercial papers and accounts receivable. Declaration of Policy – Sec. pars. drafts. COOPERATIVE BANKS (Coop Banks) – Sec. acceptances. Cooperative Code a. and general conduct of business – xRural Banks Act21 b. GBL. and general conduct of business – xArts. services. Art. GBL.

7 a. But may change from one mode of entry to another – xSubsec. 560 SCRA 606 (2008) H. 6. Foreign Banks Liberalization Act c. Foreign Banks Liberalization Act28 (i) (ii) By acquiring. 3518 26 Republic Act No. 3. Philippine National Bank (PNB) but now privatized – xRevised Charter of Philippine National Bank27. 7221 . MRB 22 23 Republic Act No. 3. MRB G.10. 80 Series of 1986 28 Republic Act No. 564 SCRA 512 (2008) 5. xSec. Pawnshops? – First Planters Pawnshop. 6848 (“Charter of Al Amanah Islamic Development Bank of the Philippines”) Republic Act No. X101(b)(6). GBL 1. 74 to 100-A. Islamic Bank Charter 3. OTHER CLASSIFICATIONS OF BANKS – Sec. Foreign bank may avail of only 1 mode of entry – Sec. FOREIGN BANKS 1. Land Bank of the Philippines (Land Bank) – xSecs. Commissioner of Internal Revenue. 81. and general conduct of business – xIslamic Bank Charter22 2. capital requirements. Islamic Bank Charter. supervision. 3844 24 Executive Order No. guidelines – Secs. v.2(g). 2 and 3. Powers – Sec. Foreign Banks Liberalization Act. Organization. 7169 27 Executive Order No. xAn Act to Rehabilitate the PVB26 4. Inc. 2. Modes of entry – Sec. 2. Velasco . Code of Agrarian Reform of the Philippines23 2. Entry of Foreign Banks a. purchasing or owning up to 60% of the voting stock of an existing domestic bank By investing in up to 60% of a new banking subsidiary incorporated under the laws of the Philippines (iii) By establishing branches with full banking authority b. Subject to MB approval. xPhilippine National Bank v. 121. Development Bank of the Philippines (DBP) – xRevised Charter of Development Bank of the Philippines24 3. Series of 1986 25 Republic Act No. ownership. Philippine Veterans Bank (PVB) – xPhilippine Veterans Bank Act25. powers. Purpose – Sec.

par. 4.8 d. Within 7 years from GBL effectivity. Foreign Banks Liberalization Act b. Foreign Banks Liberalization Act 2. 2. 7042 . Foreign Banks Liberalization Act d. May own up to 60% of the voting stock of only 1 new banking subsidiary – Sec. 73. 3(d). Must be widely-owned and publicly-listed in its country of origin. GBL. par. Rules on Acquisition of Voting Stock in New Domestic Bank a. Sec. unless applicant is owned by government thereof – Sec. Must be among top 150 foreign banks in the world or top 5 in their country of origin as of application date – Sec. 3(d). Control of 70% of resources or assets of entire banking system must be held by banks which are at least majority-owned by Filipinos – Sec. par. MB may authorize foreign bank: (i) To acquire up to 100% of voting stock of only 1 domestic bank – Sec. par. 2. Sec. Capitalization – Sec. MB shall secure the listing in the PSE of shares of stocks of banks established under this mode of entry – Sec. License to do business not required: Equity investment is not deemed doing business – Sec. Equal treatment of local banks – Sec. 4. 1. 3. 73. Foreign Banks Liberalization Act e. Rules on Establishing Branches a. 3. 4(i). par. 73. Foreign Banks Liberalization Act c. Foreign Investments Act of 199130 3. Foreign Banks Liberalization Act e. GBL c. to further acquire up to 100% voting stock thereof – Sec. par. 3. 3. Governing Laws 29 30 Philippine Stock Exchange Republic Act No. 3. Foreign Banks Liberalization Act b. 3. Foreign Investments Act of 1991 4. 3. 3. Foreign Banks Liberalization Act f. 8. par. Rules on Acquisition of Voting Stock in Existing Domestic Bank a. 3. par. Foreign Banks Liberalization Act d. MB shall secure the listing in the PSE 29 of shares of stocks of banks established under this mode of entry – Sec. par. 2. GBL (ii) Which acquired up to 60% of voting stock under the Foreign Banks Liberalization Act and Thrift Banks Act. License to do business not required: Equity investment is not deemed doing business – Sec. GBL. 73. 2. May own up to 60% voting stock of only 1 domestic bank – Sec.

72. GBL. Foreign Banks Liberalization Act e. Sec. directors or officers of corporations to each other and the corporation: Law of place where foreign bank established – Sec. formation. 4(ii). 8. Capitalization – Sec. members. Offshore Banking System Decree c. 1(a) and 1(b). BSP Circular No. Offshore Banking System Decree a.A. Must be among top 150 foreign banks in the world or top 5 in country of origin – Sec. Part Three. 74. Foreign Banks Liberalization Act d. 75. responsibilities. Saulog. Offshore Banking System Decree 31 Presidential Decree No. 4. Rule 14. GBL. 3. Foreign Banks Liberalization Act c. 1389 – Sec. Effects of certain laws – Sec. liabilities. 201 SCRA 137 (1991) i.9 (i) Creation. Foreign Banks Liberalization Act f. Head office guarantee – Sec. 133. par. 1034. 76. Summons and legal processes – Sec. Must be licensed to transact business – Sec. 6. or duties of stockholders. par. 72. 2. Offshore Banking Units (OBU) – Secs. GBL. Must be widely-owned and publicly-listed in country of origin. 514 SCRA 441 (2007) g. 5. GBL (ii) (iii) Conduct of offshore banking business: xOffshore Banking System Decree31. v. Hang Lung Bank. Offshore Banking System Decree d. Revocation of license – Sec. Ltd. 4. 2. Offshore Banking System Decree b. 2. GBL (iv) All other matters: GBL – Sec. GBL b. par. 78. Sec. GBL 5. 77. par. 77. Head office guarantee – Sec. 1. Qualification – Sec. organization or dissolution of corporations. Time limitation on entry – Sec. 3. unless government-owned – Sec. 12. fixing of relations. Foreign Banks Liberalization Act h. Citibank. as amended . Treatment of multiple branches – Sec. GBL Entry into the Philippines through establishment of branches: xForeign Banks Liberalization Act – Sec. Sabeniano. 1997 Rules of Civil Procedure j. xChapter 1. N. 3. Corporation Code. Certificate of authority to operate – Sec. v.

Serrano v. BPI Family Bank v. Bank’s Duty of Utmost Care34 – Sec. X262. v. Court of Appeals . 59 (1933). Go v.. Court of Appeals . Consolidated Bank and Trust Corporation v. Court of Appeals. Bank has right to compensation – Gullas v. Bank of the Philippine Islands v. 512 SCRA 620 (2007) f. NCBA. Court of Appeals . 511 SCRA 268 (2006) 3. obligation to pay amount. People v. Inc. xSec. DEPOSIT FUNCTION A. Bank of the Philippine Islands v. Philippine National Bank. Philippine Bank of Commerce v. For UB and KB – Sec. 2.10 III. 538 SCRA 184 (2007) c. Court of Appeals . Hilado v. 230 SCRA 799 (1994). Bank of the Philippine Islands . 128 SCRA 577 (1984). 59 Phil. 1953 and 1980. 206 (1930). KINDS OF DEPOSIT 1. Court of Appeals. 232 SCRA 302 (1994) d. Jr. v. Court of Appeals. Civil Code . MRB a. Mandamus not a remedy – xLucman v. Moran v. 96 SCRA 96 (1980). MRB b. 62 Phil. People v. Deposit is voluntary agreement. Republic v. 63 SCRA 114 (1975) e. Malawi. 410 SCRA 562 (2003) 33 Serrano v.. “Know Your Customer” standards – xMemorandum dated 1 October 2002. Bank as Debtor a. 33. 353 SCRA 601 (2001) . 58-60. 206 SCRA 408 (1992). 96 SCRA 96 (1980) 2. Deposits as Simple Loans 32 – Arts. Ong. GBL B. Firestone Tire & Rubber Company of the Philippines v. 58 Phil. NATURE OF DEPOSIT 1. China Banking Corp. Morfe. 197 SCRA 22 (1991). 183 SCRA 360 (1990).1. Court of Appeals . 10(b). v. 471 (1949). Puig. Central Bank. Intermediate Appellate Court. No breach of trust. 204 SCRA 942 (1991). Ltd. 83 Phil. Bank of the Philippine Islands v. 269 SCRA 695 (1997). v. Court of Appeals. Bank of the Philippine Islands v. Demand Deposits – Secs. 563 SCRA 564 (2008). De la Costa. xSecs. Franco. 519 (1935). 34 Simex International (Manila). City Fiscal of Manila . For TB – Sec. Bank acquires ownership of money deposited. 326 SCRA 641 (2000). 65 SCRA 186 (1975). Thrift Banks Act 32 San Carlos Milling Co. Payment to proper party-depositor – Fulton Iron Works Co. GBL b. Deposits are not preferred credits – Central Bank v. but no obligation to return the same money 33 – Guingona. Intermediate Appellate Court. X201 to X204. Central Bank.

OPENING OF DEPOSIT ACCOUNTS 1. MRB d. MRB. FCDA35 6. MRB. 2 and 3. ID optional – xSubsec. X201. Commissioner of Internal Revenue . xCommonwealth Act No. 5. CAPACITY OF DEPOSITORS 1. 3(1). For Islamic Banks – Sec. Reyes. Time Deposits – xSecs. 9(a). Know Your Customer Standards: At least 3 specimen signatures updated every 5 years. par. Foreign Currency Deposits – Secs. Republic Act No. BPI Family Savings Bank v. 9(a). 7192 3. as amended by Republic Act No. Islamic Bank Charter 2. 520 SCRA 688 (2007) 3. Savings Deposits – xSec. X213 and X214. ADMINISTRATION OF DEPOSIT ACCOUNTS 35 36 Republic Act No. 379-380. Thrift Banks Act 2. First Metro Investment Corporation. 1207 and 1208. Joint Accounts – Arts. X204. MRB D. 734 . 485. xSubsec. 178. 12(b). 6426. MRB 2. Civil Code c. Exception: Numbered accounts – Sec. Pseudonyms – xArt. 1. Sec. AMLA36 b. X223 to X226. 6. Bank Officers and Employees: Prohibited from maintaining demand deposits or current accounts in banking office where they are assigned – xSec. Money Market Placements? – Allied Banking Corporation v. Revised Penal Code. Anonymous Accounts/Fictitious Names – Sec. Corporation Code 4. as amended (“Foreign Currency Deposit Act”) Republic Act No.1. 142. Rural Banks Act. X231. 429 SCRA 30 (2004) 5. X262. Presidential Decree No. 549 SCRA 504 (2008) C. MRB. Prohibitions: a. (7)(a). Civil Code E. Married Women – Sec. FCDA 3. 22. as amended. Corporations: Through signatories designated by Board of Directors – Sec. International Exchange Bank v.11 c. Minors – Sec. 9160. 454 SCRA 635 (2005) 4. xArts. People v.1. AMLA. Negotiable Order of Withdrawal (NOW) Accounts – xSecs. For RB/Coop Bank – Sec. 23. 9194 (“Anti-Money Laundering Act of 2001”) . Sec. Lim Sio Wan.

Cabamongan . Ong . X242.. 326 SCRA 641 (2000) c. 97.. Villanueva v. From current accounts: Allowing withdrawal of value of check drawn: (i) (ii) In case of insufficiency of funds – Moran v. Deposit of Funds a. Withdrawal of Funds a. From savings accounts: Presentation of passbook and withdrawal slip – Bank of the Philippine Islands v. Disclosure requirements – xSec. FCDA e. 446 SCRA 282 (2004) (iii) In favor of other persons when check crossed – Traders Royal Bank v. Querimit. If deceased depositor: (i) (ii) Tax clearance required – Sec.2. 465 SCRA 372 (2005) . NIRC. Not subject to interest ceilings – xSec. 373 SCRA 665 (2002) d. Radio Philippines Network. 28(A)(1) (a) and (6). Time of payment of interest on time deposits – xSubsec. v. X261.1. Delivery required – Art. Nite. MRB c. 230 SCRA 799 (1994). MRB b. MRB 5. 5. 353 SCRA 601 (2001) 2. v.12 1. 390 SCRA 608 (2002) (iv) By issuing a manager’s check – Equitable PCI Bank v. From foreign currency deposit accounts : Based on contract – Sec. Acceptability of withdrawal slips as deposits – Firestone Tire & Rubber Co. X243. Inc. NIRC Survivorship Agreements – Vitug v. N.A. Tan. Pacilan. 502 SCRA 119 (2006) b. Court of Appeals . 488 SCRA 517 (2006) a. X242. of the Phil. Booking of Deposits – xSec. Interest on Deposits – Citibank. MRB 4. 496 SCRA 459 (2006) Prior to clearing – Associated Bank v. MRB d. 183 SCRA 755 (1990) 3. From time deposits: Surrender of certificate of deposit – Far East Bank and Trust Company v. Jr. Civil Code b. 1934. Court of Appeals. Court of Appeals. X242. Closing of Account – Far East Bank and Trust Company v. Court of Appeals. But See: xSec. Matured time deposits – xSubsec.

Rules for Peso Deposits a. 1987 Constitution. 1987 Constitution. Law on Secrecy of Bank Deposits . 28. III. MRB In cases of impeachment Upon the order of a competent court in cases of bribery or dereliction of duty of public officials In cases where the money deposited or invested is the subject of litigation Under the Anti-Graft and Corrupt Practices Act 39: In cases involving unexplained wealth – Sec. 2. 509 SCRA190 (2006) 2. 26. Secs. 3019. MRB For loans secured by hold-out or assignment of CTDs – xSec. Law on Secrecy of Bank Deposits 37. GBL c. Sandiganbayan (Special Division). 377 SCRA 63 (2002) c. III. II. Coverage – Sec. 2 and 3. as amended Directors. Officers. Marquez v.4. SECRECY OF BANK DEPOSITS 1. 15(8). 2. X337. Sandiganbayan (Special Division). Secs. Ejercito v. NCBA. General Rules a. 2 and 3. 359 SCRA 772 (2001). Ombudsman Act. 15 SCRA 91 (1965). Banco Filipino Savings and Mortgage Bank v. Related Interests 39 Republic Act No. 8. Ejercito v. 545 SCRA 384 (2008) b. Applicable law – Intengan v. Anti-Graft and Corrupt Practices Act.13 F. Prohibitions – Secs. and 7 and Art. 509 SCRA190 (2006) b. Eugenio. Sandiganbayan (Special Division) . Exceptions (i) Under the Law on Secrecy of Bank Deposits – Sec. 2. Rationale: right to privacy – Art. Disierto. 509 SCRA190 (2006) 37 38 Republic Act No. as amended 40 Republic Act No. 6770 .1(b) and 55. Secs. 55. Gancayco. Law on Secrecy of Bank Deposits (a) Upon written permission of the depositor or investor: (1) (2) (b) (c) (d) (ii) DOSRI38 loans – Sec. Stockholders. Ejercito v. Philippine National Bank v. Republic v. xSec. 161 SCRA 576 (1988) (iii) Under the Ombudsman Act40 – Sec. 3. Court of Appeals. Applicability of exclusionary rule – Art. Sec. Purisima. X315(f). 1405.

27-43. 11. 7080. 9576 44 Republic Act No. Eighth. including those perpetrated by terrorists against non-combatants and similar targets (b) BSP inquiry into or examination of deposits or investments with any bank. Human Security Act (viii) Under the NIRC – Sec. 3936. Eugenio. 509 SCRA190 (2006) (v) Under the AMLA – Sec. 6(F). AMLA. xDOJ Opinion No. 8. Sandiganbayan (Special Division) . PDIC Charter (vii) Under the Human Security Act 44 – Secs. 243 (Series of 1957). as amended by Republic Act No. Republic v. as amended Philippine Deposit Insurance Corporation 43 Republic Act No. par. 1(d) and 4. when the inquiry or examination is made in the course of the BSP’s periodic or special examination (vi) Independent auditor hired by the bank to conduct its regular audit. 3591. 9732 45 Act No. 2. destructive arson and murder. 104 (Series of 1975) (x) 41 42 Under the Rules of Court Republic Act No. 359 SCRA 772 (2001) (vii) Under the PDIC42 Charter43 – Sec. Ejercito v. 7400 and Republic Act No. Disierto . 679 . except that no court order is required in cases of: (1) (2) (3) kidnapping for ransom drug trafficking hijacking. xMarquez v. Unclaimed Balances Law. as amended by Presidential Decree No.14 (iv) Under the Plunder Law41 – Secs. 545 SCRA 384 (2008) (a) Upon order of a competent court in cases of violation of the AMLA where there is probable cause of money laundering. provided that the examination is for audit purposes only and the results thereof shall be for the exclusive use of the bank – xDOJ Opinion No. NIRC (a) Upon inquiry by the Commissioner of Internal Revenue for the purpose of determining the net estate of a deceased depositor In case a taxpayer files and application to compromise his tax liabilities on the ground of financial incapacity (waiver required) (b) (ix) Under the Unclaimed Balances Law 45 – Disclosure to the Treasurer of the Philippines for dormant deposits for at least ten (10) years – Sec. Plunder Law .

377 SCRA 63 (2002). 11. Rural Banks Act c. Rules for Deposits in Specific Banks and Financial Institutions a. Rule 39. 21(a)(2). 55. Thrift Banks Act d. Estrada v. Rural Banks – Sec. GBL a. 6. FCDA. Revised NonStock Savings and Loans Association Act of 1997 46 47 Intengan v. 445 SCRA 655 (2004). Desierto. Court of Appeals. 511 SCRA 110 (2006) Upon order of a competent court in cases of violation of the AMLA where there is probable cause of money laundering. Estrada v. Exceptions (i) Upon written consent of the depositor 46 – Sec. 8. Court of Appeals. 8. Court of Appeals. 8. China Banking Corporation v. (b) d. 7400 and Republic Act No. Non-Stock Savings and Loans Association – xSec. 5. 33 and 45. 49 SCRA 356 (1973). 26(a)(2). 1997 Revised Rules of Civil Procedure. par. 9(c). FCDA c. FCDA. Rule 57. Thrift Banks – Sec. Eighth. when the inquiry or examination is made in the course of the BSP’s periodic of special examination of said bank – Sec. 3591. Islamic Bank Charter b. 9576 . AMLA (iv) Under the PDIC47 Charter48 – Sec. 11. Disierto. China Banking Corporation v. 1997 Revised Rules of Civil Procedure. Central Bank of the Philippines . Islamic Banks – Secs. as amended by Republic Act No. 10. Law on Secrecy of Bank Deposits 3. AMLA (ii) (iii) BSP inquiry into or examination of deposits or investments with any bank. Coverage – Sec. Under the GBL – Sec. 10. Rules for Foreign Currency Deposits a. 8. 278 SCRA 27 (1997) b. Prohibition – Sec. PDIC Charter d.1(b). Penalty for Violation – Sec. Penalty for Violation – Sec. 445 SCRA 655 (2004) Philippine Deposit Insurance Corporation 48 Republic Act No. except that no court order is required in specified cases – Sec. 193 SCRA 452 (1991) Preliminary attachment – Sec. Ortega . Salvacion v. FCDA 4.15 (a) Garnishment – Sec. xPhilippine Commercial and Industrial Bank v.

GARNISHMENT 1. 4. 283 SCRA 462 (1997) I. 9. Court of Appeals. 4 and 5. Ortega. Posting. Sec. PDIC Charter51 3. Rule 39. Unclaimed Balances Law 4. v. 345 SCRA 63 (2000) 3. Unclaimed Balances Law 49 50 Philippine Deposit Insurance Corporation Republic Act No. UNCLAIMED BALANCES 1. Court of Appeals. xPhilippine Commercial and Industrial Bank v. FCDA 2. 2. 193 SCRA 452 (1991) 4. Exempt Deposits a. 4(g). DEPOSIT INSURANCE 1.16 G. PDIC49 Charter50. 49 SCRA 356 (1973). De Castro. Publication – Sec. Rule 39.000. 7400 and Republic Act No. Republic v. 1997 Rules of Civil Procedure 2.00 – Sec. 193 SCRA 452 (1991) H. Under the Rules of Court – Sec. Court of Appeals. Central Bank of the Philippines. 3 and 4. 3591. 10(b) to (d). Definition – Sec. 1. Republic Act No. 1997 Rules of Civil Procedure 3. Effects of Compliance/Non-Compliance – Secs. Court of Appeals. Escheat Proceedings – Sec. Notice. But See xSalvacion v. Liability for Release – Rizal Commercial Banking Corporation v. as amended by Republic Act No. Unclaimed Balances Law 2. 9576 . 13. Coverage – Sec. Unclaimed Balances Law. FCDA. Foreign currency deposits – Sec. PDIC Charter 4. xPhilippine Commercial and Industrial Bank v. Rules on Payment – Secs. 3. 8. 168 SCRA 49 (1988). 9(c). No violation of Law on Secrecy of Bank Deposits – xChina Bank v. 278 SCRA 27 (1997) b. Liability of PDIC – Philippine Deposit Insurance Corp. Amount Insured: Maximum of P500. Procedure – Sec. 9576 51 As further amended by Secs. Report to Treasurer.

Facilitating money-laundering referred to in Item (a) above. Transacting or attempting to transact. and other similar entities. FCDA. AMLA a. AMLA a. and transfer companies. which shall not violate the Law on Secrecy of Bank Deposits. AMLA a. pre-need companies. regardless of amount involved. AMLA 4. including legal existence and organizational structure of corporate clients. brokers. advisor. Covered Institutions – Sec. common trust funds. money payment. (c) Foreign exchange corporations. or consultants. in cash or other equivalent monetary instrument in excess of P500. Reporting of Covered and Suspicious Transactions: Report Covered Transactions and Suspicious Transactions to AMLC 53. within 5 working days from occurrence. and GBL 6. Suspicious Transactions: Transaction with Covered Institution.17 J. (b) Mutual funds. with monetary instrument or property. 3(b-1). involves. by failing to perform an act 52 (a) Securities dealers. valuable objects. AMLA 3. 2. or relates to proceeds of any Unlawful Activity b. by the following acts: – Sec. ANTI-MONEY LAUNDERING ACT 1. knowing it represents. remittance. commodities or financial derivatives based thereon. AMLA 2. based on official documents b. and other similar entities. where any of the enumerated suspicious circumstances exist – Sec. supervised/regulated by BSP their subsidiaries and affiliates. investment houses. and other entities managing securities or rendering services as investment agents. 3(a). SEC supervised/regulated entities52 5. Insurance companies and other entities supervised/regulated by Insurance Commission c. 9. closed-end investment companies. cash substitutes and other similar monetary instruments or property 53 Anti-Money Laundering Council . Record Keeping: Keep records for 5 years c. Declared Policy – Sec. Covered Transactions: Transaction. money changers. Banks and other entities. Obligations of Covered Institutions – Sec. salesmen. and their representatives. b. (d) Other entities administering or dealing in currency. Money-Laundering Crime: Committed when the proceeds of an Unlawful Activity are transacted to make them appear to have originated from legitimate sources.000 within 1 banking day – Sec. Customer Identification: Establish and record. and maintain a system of verifying true identities of clients. 3(b). 4.

Penalties and Other Consequences a.. Eugenio. b. BSP inquiry into or examination of deposits or investments with any bank. AMLA 11. when the inquiry or examination is made in the course of the BSP’s periodic of special examination of said bank to ensure compliance with AMLA 14. AMLA. 6. Forfeiture – Sec. AMLA 15. 13. AMLA 8. AMLC. except that no court order is required in cases of kidnapping for ransom. Prohibition against Political Harassment – Sec. 5. Mutual Assistance among States – Sec. AMLA 54 SC Circular A. 7. 12. hijacking. Jurisdiction: Regional Trial Court/Sandiganbayan – Sec. 10. for 20 days unless extended – Sec. Failing to disclose and file report with AMLC of any monetary instrument or property as required under AMLA 7. Glasgow Credit and Collection Services.M. 05-11-04-SC . involving or having relation to the crimes enumerated – Sec. AMLA. xRepublic v. AMLA 10. AMLA. Composition and Powers – Sec. Upon order of a competent court in cases of violation of the AMLA where there is probable cause of money laundering. 545 SCRA 384 (2008) 13. AMLA 9. Eugenio. Prosecution – Sec. Inc. Penalties – Sec. 545 SCRA 384 (2008) a. drug trafficking. Examination of Accounts – Sec. Republic v. 14.18 c. 3(i). Unlawful Activities: Act or omission or series or combination thereof. Republic v. 11. AMLA (i) (ii) (iii) (iv) Money laundering Failure to keep records Malicious reporting Breach of confidentiality b. including those perpetrated by terrorists against non-combatants and similar targets. destructive arson and murder. 542 SCRA 95 (2008) 12. No. 16. Freezing of Accounts: Issued by Court of Appeals upon ex-parte application of AMLC after determination of probable cause that monetary instrument or property is in any way related to Unlawful Activity. xRules on Civil Forfeiture54.

19 IV. (NSBCI) v. No ceiling – xSec. Purpose. 44. 551 SCRA342 (2008) 2. Escalation clause. Court of Appeals. X305. 218 SCRA 426 (1993) 55 56 Republic Act No. Civil Code. GBL 3. xSec. Ramos. 435 SCRA 565 (2004). X307. 1-a.1(c). Philippine National Bank. 415 SCRA 596 (2003). But See xLlorin. Philippine National Bank v. X332. X302 and 304. MRB. TERMS AND CONDITIONS 1. and Requirement of Loans – Secs. GBL 5. Other security requirements – Sec. Renewal or extension – Sec. LOAN FUNCTION A. 435 SCRA 565 (2004) B. New Sampaguita Builders Construction. 43. New Sampaguita Builders Construction. GBL 3. 9182 (Special Purpose Vehicle Act of 2002) 4. NCBA c. Truth in Lending Act 55. xSec. 4 and 6. Court of Appeals . 46. Inc. 55. Pre-Payment – Sec. Terms and conditions – Sec. Jr. JAPRL Development Corporation. xSecs X302 and X306 MRB. MRB. xSec. Interest – Art. 39 and 40. X305. xSec. 1308. Philippine National Bank. MRB. 49 GBL. GBL. Inc. Sec. 1956. 41. 527 SCRA 727 (2007). 2655 as amended . Grant. GBL. GBL d. 515 SCRA 79 (2007) b. Bulos. xRepublic Act No. X301. (NSBCI) v.2. Disclosure Requirements – Secs. v. Jr. 48 GBL. Civil Code a. 55. when allowable – Art. Prohibited Transactions – Secs. United Coconut Planters Bank v. and 55. Amortization – Sec. v. MRB e. Inc. Dagupan City Branch . 196 SCRA 536 (1991). Bango Filipino Savings and Mortgage Bank. MRB c. v. BASIC CONCEPTS 1. MB Regulation a. X305. 45 of Usury Law 56.1(d). 106. Provisions for losses and write-offs – Sec. Yasuma. xSecs. 2. Unsecured loans – Sec. 45. Bacolor v. 42. Banco de Oro-EPCI. GBL b. In the absence of stipulation – xSec. GBL 2. 4-a. 3765 Act No. MRB. Development Assistance Incentives – Sec.

GBL b. 66 Phil. Extraordinary Inflation/Deflation – Art. xOng v. MRB 2. MRB. Judge of First Instance of Iloilo . 24. 2047. GBL. Philippine Commercial Industrial Bank . Court of Appeals . MRB 4. Sanctions – xSubsec. X322. 323 (1957) . 34 Phil. Inc. MRB D. GBL 1. GBL. Sanctions – xSec. SINGLE BORROWERS LIMIT – Sec.5. Exceptions a.1 to 303. Araneta v. Civil Code. 1207 to 1225. 101 Phil. Gatmaitan. 198 SCRA 767 (1991). 35. 96 Phil. Civil Code. 35. 303. MRB 2. NCBA 1. X303. 541 SCRA 223 (2007) 5. xArts. X326 to X329. 341 SCRA 781 (2000). MRB 3. Floating rates of interest – xSec. 144 (1954). 157 (1916). X336.3 to 35. MRB E. Philippine National Bank v. 35. 36. xSec. X330 to X332. Ceilings – Sec. Hon. Deposits of RB with government financial institutions – Sec. 26. 17. DOSRI ACCOUNTS – Sec. to Sec. Ceilings: Individual and Aggregate Ceilings and Exclusions – xSecs. Sec. v. Security Bank and Trust Company. As MB may otherwise prescribe for reasons of national interest – Sec. 356 SCRA 671 (2001) 4. 1250. MRB 3. Restructuring – xSec. Requirements: Procedural and Reportorial – xSecs.20 d. X319. Civil Code. Carlos.1. Joint and Solidary Signature (JSS) – Art. xSubsec X303. Ng Sheung Ngor. X305. Consolidated Bank and Trust Corporation (Solid Bank) v. Tolentino v. 448 SCRA 705 (2005) 3. Unsecured Loans – xSec. Rural Banks Act 4. 35. Coverage: Persons and Transactions Covered – xSecs. What is Included in Ceiling – Secs.7.. Gutierrez v. COLLATERAL/SECURITY 1. 140 (1938). X334 and X335.2. Equitable PCI Bank v. Camus. MRB 2. GBL57. Cuenca . Court of Appeals . in rel.1 and 35.4. Loans Secured by Chattels or Intangible Property 57 Government of the Philippine Islands v. MRB C.

Loans Secured by Real Estate Mortgages (REMs) a. par. Types of security (i) (ii) Chattel Mortgage – xChattel Mortgage Law58 Pledge – xArts. 47. GBL. xSC Circular AM No. as amended (iii) Specific rules for TB/RB/Coop Banks – Sec. 569 SCRA 814 (2009) (iii) Extension of redemption period – Lazo v. Inc. But see Consolidated Bank and Trust Corporation (Solidbank) v. GBL d.4 and 3311. 321 SCRA 88 (1999) (iv) Tolling of redemption period – Sumerariz v. 192 SCRA 34 (1990). 547 SCRA 246 (2009) c. Right and period of redemption – Sec. xSubsecs. Intermediate Appellate Court. X313. Rules of Court Extra-judicial – Act No. Types of foreclosure (i) (ii) Judicial – Rule 68. xSec. Acquisition of property by way of satisfaction of claims – Sec. MRB b. Rural Banks Act. 275 SCRA 790 (1997) 58 Act No. “Dragnet Clause” – Union Bank of the Philippines v. mortgagee in bad faith – Philippine National Cooperative Bank v. Inc. See also CMS Stock Brokerage. v. Limits – Sec. Canlas v. X311. GBL. 1508 . v. Pascual . 150 SCRA 591 (1987). Court of Appeals . Court of Appeals.. Civil Code 4. 52. 1. Civil Code (iii) Hold-out and/or Assignment – xArts. 99-10-05 (as further amended on 7 August 2001) (i) (ii) Natural persons vs. xSec. 2. Court of Appeals. 21 SCRA 1374 (1967). 38. Limits – Sec. MRB b. GBL. GBL Exercise of right of redemption – Metropolitan Bank and Trust Company v. 326 SCRA 425 (2000). 1624-1635. People’s Financing Corporation v. 6. Carandang-Villalon . GBL a. xMetropolitan Bank and Trust Co. 471 SCRA 751 (2005) 5. 2085-2123.2311. Court of Appeals. 31 SCRA 329 (1970). MRB b. Court of Appeals . v. Tan.4. par. 139 SCRA 570 (1985) Development Bank of the Philippines v. 3135. juridical persons – Sec. 47. 331 SCRA 267 (2000).21 a. Mortgagee in good faith vs. Development Bank of the Philippines. Court of Appeals. 37. Republic Surety and Insurance Co. 47. Ibaan Rural Bank. Foreclosure of REMs – Sec.

4. In specific areas (i) (ii) In financial allied enterprises – Sec. MRB (iv) In non-allied enterprises – Sec. par. GBL. Injunction and Bond – Sec. GBL.2. Sec. Philippine International Air Terminals Co. 24. EQUITY INVESTMENTS 1. Jr. xAgan. X383(a). 1. Inc. Court of Appeals . MRB (iii) In non-financial allied enterprises – Sec. Limits on Equity Investments of KB . xSec. 24. 391 SCRA 330 (2002) d. 28.22 (v) Payment of CGT and DST – xBIR Ruling 0046-2001.3(i). MRB (iv) Definition of net worth – Sec. X380.xSec..1. X379. par. 385.. Letter dated 26 September 2001 addressed to Ayala Life. Redemption Price – Sec. MRB. 27. GBL Total investment in equities of allied and non-allied enterprises – Sec. xSec. 24. MRB b. West Negros College. 1997 Rules of Civil Procedure . 402 SCRA 612 (2003) (i) (ii) Must be with prior approval of MB – Sec. xSec. INVESTMENTS AND OTHER FUNCTIONS OF BANKS A. 428 SCRA 759 (2004) e. X376. xSec. par. 378. MRB (v) In quasi-banks – Sec. GBL (v) Do the foregoing limits apply to debt-to-equity conversions? No. GBL. 24. xSec. Union Bank of the Philippines v. GBL (by analogy) (vi) Sanctions if without prior MB approval – xSec. GBL. MRB 2. 6. Development Bank of the Philippines v. Rule 39. 1. GBL V. 52. 3135. 3. GBL (vi) In subsidiaries and affiliates abroad . xSubsec. MRB (iii) Investment in equity of any one enterprise – Sec. X116. 25. 1. GBL. X383(b). par. 47. v. 359 SCRA 480 (2001). par. In general – Sec. Inc. 1. Samson v. MRB. GBL . Act No. 47. 1381. as amended.. GBL.. xSec. xSec. Limits on Equity Investments of UB a. 24. 26. MRB In Venture Capital Corporations (VCCs) – xSec. X382. 47. 28. Possession – Sec. c. GBL. Rivera. par. Sec.

In specific areas (iii) In non-financial allied enterprises – Sec. GBL (v) (i) (ii) Sanctions if without prior MB approval – xSec. Non-Core/Quasi-Banking Functions – Sec. NT & SA v.. Thrift Banks Act 4. Allied Banking Corporation v. X379. Inc. par.1. 30. v. xBSP Circular No. par. Pineda. 30. MRB b. v. 432 SCRA 559 (2004). Ordoñez. NCBA. 271 (Series of 2001) 1. Luzon Hydro Corporation. 12. 13. NCBA 59 Abad v. Daewoo Industrial Co. Issuing L/Cs59 – Sec. 24. Limits on Equity Investments of TB – Sec. GBL (i) (ii) Must be with prior approval of MB – Sec. 181 SCRA 191 (1990). Insular Bank of Asia and America. Vintola v.. Court of Appeals. GBL (iv) In quasi-banks – Sec. GBL In VCCs – xSec. Transfield Philippines. Limits on Equity Investments of RB – Sec. 192 SCRA 246 (1990) . 3. 228 SCRA 357 (1993). Foreign Exchange Operations: Buying and selling foreign exchange and gold or silver bullion – Secs. 105. GBL (iv) Definition of net worth – Sec. Nitafan. Limits on Equity Investments of Islamic Bank – Sec. Daway.Metropolitan Waterworks and Sewerage System v. 95. OTHER KB FUNCTIONS – Sec. 207 SCRA 726 (1991). 31.xSec. 30. 29. 32. Ltd. 150 SCRA 578 (1987)60 3. GBL. Islamic Bank Charter B. 28. X382. GBL (v) In subsidiaries and affiliates abroad . 385. GBL. Sec. MRB 3. 60 Philippine National Bank v. People v.23 a. Court of Appeals. 5. Rural Banks Act. 443 SCRA 307 (2004). GBL Total investment in equities of allied (financial or non-financial) enterprises – Sec. In general – Sec.2. Bank of America. 197 SCRA 1 (1991). 228 SCRA 545 (1993). Inc. 76-80. 6(11). NCBA 2. 3. Reliance Commodities. 1. par. GBL (iii) Investment in equity of any one enterprise – Sec. 4. MRB In financial allied enterprises – Sec. 30.

Funds obtained from the public (20 or more persons) – Sec. Documents. Valuable Objects – Sec. GBL. Court of Appeals. General Banking Act 2.5. Organization – Sec. Credit Card Operations – xSec. Issue Guarantees – See Sec. 53. 257 (Series of 2000) . Court of Appeals. 79 to 93. xBSP Circular No. 44 Phil. Renting Out Safety Deposit Boxes – Sec. MRB E. GBL Treasury stocks – Sec. 53. GBL c. Act as Correspondent Bank – Feati Bank & Trust Company v. Outsourcing of bank functions – Sec. Sia v. 705 (1923). xBasic Guidelines for Establishment of Banks (BSP Circular-Letter dated 13 July 1998) a.24 C. GBL 5. 192 SCRA 177 (1990) b. Insurance business – Sec. Dayrit. GBL. 196 SCRA 576 (1991). 259 SCRA 174 (1996) 3. 2. 54. OTHER SERVICES – Sec. GBL. Inc. 8. 55(1)(e). 8. Collection/Payment Agent – Sec. 53. GBL F. GBL. GBL (i) (ii) Issuance of stocks – Sec. GBL 1. v. N. GBL.3. Citibank. Filipinas Mils. pars.1. 219 SCRA (1993). X320. 53. Panlilio v. PROHIBITED ACTS 1. BANK REGULATIONS A. 53. TRUST OPERATIONS – Secs.1.2. Stock corporation – Sec. 9. Custodian of Funds. GBL 4.2. Insurance Code 2. Summers. Financial Adviser – Sec.. 222 SCRA 24 (1993) D. 53. OTHER FUNCTIONS/OPERATIONS 1. Court of Appeals . Court of Appeals.A. Philippine National Bank v. 539 SCRA 69 (2007) 3. Sec. CA AgroIndustrial Development Corporation v. Fua Cun v. GBL 2. 74. GBL.3. 8. 10. 1-3. OWNERSHIP/CAPITALIZATION OF BANKS 1. Financial Agent – Sec. 8. GBL VI. Minimum capital requirements (amount in million Pesos) – Sec.4.

BSP Circular No. 25. 256 (Series of 2000) Foreign banks – Secs. MB member/BSP personnel – Secs.2. Busuego v. 10. 18. Powers of Directors . 17. MRB c. MRB 3. 8. Criminal conviction – Sec. 3. PDIC Charter b. 9 and 27. GBL. GBL. 7. 1. xBSP Circular No. Foreign Banks Liberalization Act b. GBL. Sec. Rural Banks Act . Qualifications a. Sec. Other minimum qualifications – xGuidelines for the Establishment of Banks. 30. 27. 19. Corporation Code. Sec. Own at least one share – Sec. Meetings – Sec. Stockholdings a. MRB a. DIRECTORS AND OFFICERS 1. Disqualifications – xGuidelines for the Establishment of Banks. X141. X141. 15 dated 20 November 2001 6. 11. 332 (Series of 2002) c. Required public offering: At least 10% of capital stock of UB – xSec. GBL. 23. GBL. Foreign Banks Liberalization Act. Corporation Code b. xBSP Circular No. par. Corporation Code 2. Foreign stockholdings (i) (ii) Individuals and non-banks – Sec. par.25 d. xSec. GBL. Compensation and Other Benefits – Sec. 2. GBL. xSEC Memorandum Circular No. Sec.2. 11 and 73. xBSP Circular No. GBL 2. xBSP Circular No. 5. Appendix 38. 11. 16. xSubsec. Composition of Board – Secs. 2.2. 15 and 17. MRB (Guidelines For The Organization Of Cooperative Banks) c. Corporation Code 5. Filipino stockholdings – Sec. 304 SCRA 473 (1999). 23. Corporation Code. Fit and proper rule – Sec.1. Capability and other requirements – Sec. 271 (Series of 2001) B. X141. 12 and 13. GBL. Sec. 332 (Series of 2002) d. Sec. par. 15. Court of Appeals. xSubsec. xSubsec. Stockholdings of family groups or related interests – Secs. GBL. Public officials – Sec. 256 (Series of 2000). NCBA 4.

X141. Court of Appeals. 56. Court of Appeals.3. GBL 4. 58. Insular Savings Bank v. 63. MRB c. Prohibited Acts – Sec. Allied Banking Corporation v. 429 SCRA 30 (2004) 8. Unsound Banking Practice – Sec. Perez v. BANK OPERATIONS 1. Settlement of Disputes – Sec. Home Bankers Savings and Trust Co. GBL. General Powers – xBSP Circular No. 55. xBSP Circular No. Declaration of Dividends – Sec. Branches – Secs. PENALTY FOR VIOLATIONS – Sec. Court of Appeals . xCircular No. 223 SCRA 350 (1993). Monetary Board. MRB b. Series of 2005 3. Court of Appeals. BPI Family Savings Bank. v. 283 (Series of 2001). Banking Days and Hours – Sec. Doctrine of Apparent Authority 61 – Prudential Bank v. Rural Bank of Milaor (Camarines Sur) v. Inc. Specific Duties/ Responsibilities – xSubsec.5 and 4141Q5. 252 SCRA 259 (1996). OTHER REGULATIONS 1. First Philippine International Bank v. 57. 20. Ocfemia. Court of Appeals. X141. Court of Appeals . GBL. 50 to 52. MRB. GBL C. 492 SCRA 145 (2006) D.26 a. 283 (Series of 2001) 7. 500. 294 SCRA 803 (1998). 21. 350 SCRA 446 (2001) . 74 to 75. GBL 3. GBL. 1 December 1995. GBL 6. Risk Based Capital – Sec. xSec. Major Investments/Ownership of Real Property – Secs. 20 SCRA 592 (1967) 61 Limketkai Sons Milling. 341 (Series of 2002) 7. GBL E. xSubsec. First Metro Investment Corporation . Sec. X156. 34. 60 to 62.1. v. Financial Statements – Secs. 34-37. 325 SCRA 99 (2000). Far East Bank and Trust Company . GBL. 318 SCRA 558 (1999). 66. Philippine Commercial and International Bank v. Electronic Transactions – Sec. Certification of Directors – xBSP Circular No. Inc. Independent Auditor – Sec. 59. GBL 2. GBL 5. v. NCBA. GBL 2.

NCBA. 30. Governing Law – In Re: Petition for Assistance in the Liquidation of the Rural Bank of Bokod (Benguet). 2nd to last par. Appointment of Conservator – Sec. Inc. NCBA 2. 252 SCRA 259 (1996) 4. Rural Bank of San Miguel. 30 and 36. Duties of Receiver – Larrobis. Grounds – Secs. 29. Judicial Review – Sec. 30. 29. 516 SCRA 154 (2007) 2.. NCBA 1. last par. GBL. Bureau of Internal Revenue. 2nd par. Philippine Veterans Bank . 84. 1. Monetary Board .. Bangko Sentral ng Pilipinas. NCBA 1.. Secs. NCBA 6. Effect: Bank cannot be compelled to pay same bonuses to employees – xProducers Bank of the Philippines v. NCBA 3. 68. 2 and 3. VOLUNTARY LIQUIDATION – Sec. LOANS TO BANKS 1. PDIC v. First Philippine International Bank v. Banco Filipino Savings and Mortgage Bank v. GBL . 29 and 30. last par. NCBA C. Loans without collateral – Sec. 1 and Sec.. Sec. v. pars. GBL. BANKS IN DISTRESS. 30. 69. 30. Sec. NLRC. par. 1. Powers of Conservator – Sec. NCBA 2. GBL D. v. 53. Emergency loans – Sec. Court of Appeals. Termination of Conservatorship – Sec. Monetary Board. 440 SCRA 34 (2004) . NCBA. CONSERVATORSHIP – Sec. Qualifications and Remuneration – Sec. par. 29.27 VII. 1st and 2nd pars. par.. last par. 511 SCRA 123 (2006) 2. NCBA B. 29. 29.. RECEIVERSHIP AND INVOLUNTARY LIQUIDATION – Sec. CESSATION OF BANKING BUSINESS A. 204 SCRA 767 (1991). Jr. 67. NCBA 3. 83. Who May Be Receiver – Sec. NCBA 5. 355 SCRA 489 (2001) 7. Inc. Grounds – Sec.

4. Ground: grave abuse of discretion – Central Bank v. Cenzon. Judicial Review a. Actions to take – Sec. Effect on garnishment. Land Bank of the Philippines . 220 SCRA 537 (1993). 30. Court of Appeals. Jurisdiction – Sec. Court of Appeals. Court of Appeals. 30. 33.28 4. Restriction on capacity to act – Villanueva v. GBL c. Central Bank of the Philippines v. 30. Hon. v. 174 SCRA 295 (1989). Penalties for transaction after Bank becomes insolvent – Sec. 154 SCRA 257 (1987) d. Catalina. 220 SCRA 536 (1993) 63 Integrated Realty Corporation v. Stoppage of business – Provident Savings Bank v. v.U. 106 SCRA 143 (1981). Banco Filipino Savings and Mortgage Bank v. NCBA d. Banco Filipino Savings and Mortgage Bank v. 220 SCRA 536 (1993) 5. 455 SCRA 97 (2005) b. Abacus Real Estate Development Center. Arca. Court of Appeals. Monetary Board . NCBA. Disposition of banking franchise – Sec. Inc. Court of Appeals . Philippine National Bank . 244 SCRA 395 (1995). Court of Appeals .B. 204 SCRA 767 (1991) c. Court of Appeals . Who may question – Central Bank of the Philippines v. NCBA b. Lipana v.E. Liquidation a. Inc. But See Rural Bank of Sta. As opposed to rehabilitation – Philippine Veterans Bank Employees Union-N. Benjamin Vega. 366 SCRA 752 (2001) e. How assets are distributed – Secs. 435 SCRA 183 (2004) 7. All claims filed in liquidation court – Ong v. Court of Appeals. v. v. Rule 65. 208 SCRA 652 (1992) 62 Rural Bank of Buhi v. NCBA 6. Court of Appeals. xCentral Bank of the Philippines v. Monetary Board. The Manila Banking Corporation. Court of Appeals. 360 SCRA 33 (2001) b. 184 SCRA 141 (1990). 222 SCRA 125 (1993) e. Development Bank of Rizal. NCBA c. The Overseas Bank of Manila v. Rules of Court d. 31 and 32. Availability of remedy – Sec. Interest on deposits63 – Fidelity Savings and Mortgage Bank v. 70. 105 SCRA 49 (1981) and 113 SCRA 778 (1982) . Court of Appeals . Effects of Receivership and Liquidation a. levy on attachment or execution – Sec. 253 SCRA 105 (1996). “Close Now-Hear Later Doctrine”62 – Central Bank of the Philippines v. 15 SCRA 66 (1965). Manalo v. Inc. Rural Bank of Lucena. 204 SCRA 767 (1991). 162 SCRA 288 (1988).

PDIC FINANCIAL ASSISTANCE – Sec. PDIC Charter . Dela Cruz . Injunction – Central Bank of the Philippines v. 191 SCRA 346 (1990). 12(c). Effect of Filing Petition for Review – Banco Filipino Savings and Mortgage Bank v. Sec. 501 SCRA 288 (2006) E. SCRA (2004) g. PDIC Charter f. Philippine Deposit Insurance Corporation. Liability of the MB and PDIC – Miranda v.29 e. 22. Ybañez. Actions of the MB final and executory.

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