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1 BANKING LAWS - OUTLINE (Final)
1 BANKING LAWS - OUTLINE (Final)
Course Outline
Atty. Maria Zarah R. Villanueva-Castro
I. GENERAL CONCEPTS
A. Definition of Banks
Quasi-Banks
B. Nature of the Business
1. Utmost Diligence
2. Strikes and Lockouts
C. Requirements to Operate
1. Incorporation
2. Business Operation
D. Applicable Laws
A. Universal Banks
B. Commercial Banks
1. Rural Banks
2. Other Banks (cooperative, thrift, Islamic, foreign, etc.)
3. Areas of Distinctions
(a) capitalization
(b) purpose
(c) powers
(d) equity
(e) board composition
(f) public offering
I. PDIC Insurance
1. Amount of coverage
2. Rules on payment
CASES: Vitug vs. Court of Appeals, 29 March 1990; Intengan vs. Court of Appeals, 15
February 2002; China Bank vs. Ortega, 49 SCRA 356; Salvacion vs. Central Bank, 21
August 1997; Ejecito vs. Sandiganbayan, 30 November 2006; People vs. Ejercito Estrada,
2 April 2009
A. Legal basis
B. Terms and Conditions
1. Amortization
2. Rules on Pre-Payment and Renewal
3. Interest
C. DOSRI Accounts
1. Requisites
2. Persons Covered (See BSP Circular No.
3. Transactions Covered
4. Restrictions under the GBL
5. Restrictions under Sec. 26, NCBA
D. Collaterals
1. Value of Collaterals
2. Foreclosure of Mortgage
3. Redemption Period
4. Effect of Estoppel and/or Agreement
5. Effect of Restraining Order
E. Single Borrower Limit
1. Rationale
2. Ceiling
3. Inclusions/Exclusions from SBL
G. Truth in Lending
1. Matters required to be disclosed
2. Penalties
CASES: Soriano vs. People of the Phils., 30 June 2009; BPI vs. Sps. Yu, 20 January 2010;
DBP vs. Arcilla, G.R. No. 161397, 30 June 2005
V. BANK REGULATIONS
A. Ownership of Banks
1. Guidelines for Establishment
2. Foreign Stockholdings
(a) Individual and non-banks
(b) Foreign Banks
3. Filipino Stockholdings
4. Stockholdings of family Groups or Related Interests
5. BSP Circulars on Ownership (Circular No. 332, Series of 2002; Circular No.
256, Series of 2000)
A. Loans to Banks
1. Loans without Collateral
2. Emergency Loans
B. Conservatorship
1. Powers of Conservator
C. Receivership
1. Grounds
2. Duties of Receiver
3. Close Now-Hear Later Scheme
4. Other Legal Effects
D. Liquidation
CASES: Central Bank vs. Court of Appeals, 30 March 1993; Cudiamat vs. Batangas
Savings, 9 March 2010; Lipana vs. Development Bank of Rizal, 24 September 1987; Sps.
Larrobis, Jr. vs. Philippine Veterans Bank, 1 October 2004; Fidelity Savings Bank vs.
Cenzon, 5 April 1990; In Re: Petition for Assistance in the Liquidation of Rural Bank of
Bokod, 18 December 2006