The document summarizes the Unclaimed Balances Law, which allows the government to claim inactive bank deposits that have gone unclaimed for 10 years or more. The law defines unclaimed balances as deposits of money, securities, or other debts that belong to someone who is known to be dead or who has not used the account in over 10 years. For the law to apply, the inactive account must be held at a bank, building association, or trust company. The process involves the bank notifying the account holder, filing a sworn statement with the Treasurer of the Philippines, who then notifies the Solicitor General to begin legal proceedings to claim the funds.
The document summarizes the Unclaimed Balances Law, which allows the government to claim inactive bank deposits that have gone unclaimed for 10 years or more. The law defines unclaimed balances as deposits of money, securities, or other debts that belong to someone who is known to be dead or who has not used the account in over 10 years. For the law to apply, the inactive account must be held at a bank, building association, or trust company. The process involves the bank notifying the account holder, filing a sworn statement with the Treasurer of the Philippines, who then notifies the Solicitor General to begin legal proceedings to claim the funds.
The document summarizes the Unclaimed Balances Law, which allows the government to claim inactive bank deposits that have gone unclaimed for 10 years or more. The law defines unclaimed balances as deposits of money, securities, or other debts that belong to someone who is known to be dead or who has not used the account in over 10 years. For the law to apply, the inactive account must be held at a bank, building association, or trust company. The process involves the bank notifying the account holder, filing a sworn statement with the Treasurer of the Philippines, who then notifies the Solicitor General to begin legal proceedings to claim the funds.
A copy of said sworn statement is POSTED in the bank premises
GENERAL BANKING LAW 4. The Treasurer of the Philippines then NOTIFIES the SOLICITOR-GENERAL 5. Acting on such notification, the Solicitor-General commences ESCHEAT AN ACT PROVIDING FOR THE REGULATION OF THE ORGANIZATION AND proceedings before the Regional Trial Court where the bank is located OPERATIONS OF BANKS, QUASI-BANKS, TRUST ENTITIES AND FOR OTHER PURPOSES
A. DEFINITION AND CLASSIFICATION OF BANKS
Numerically designated as Republic Act No. 3936, this law, referred to as UNCLAIMED BALANCES LAW, took into effect on January 11, 1933. It underwent amendment on April 2, 1975, thru Presidential Decree no. 679, issued by the late President Ferdinand E. Marcos
B. PURPOSE OF THE LAW
To rid from banks such unwanted inactive bank deposits by converting them into government money through ESCHEAT proceedings.
C. UNCLAIMED BALANCES, definition
Unclaimed balances includes credits, or deposits of money, bullion, security, or other evidence of indebtedness of any kind and interest and interest thereon with banks, building and loan associations, and trust companies, in favor of any person known to be dead or who has not made further deposits or withdrawals during the preceding ten years or more.
D. BASIC REQUIREMENTS FOR THE LAW TO APPLY
1. Existence of credit or deposit consisting of – a. Money, b. Bullion, c. Security, or d. Other evidence of indebtedness 2. Such credit or deposit is with – a. Bank, b. Building and loan association, or c. Trust corporation 3. And the credit or deposit is in favor of an individual who is – a. Known to be DEAD, or b. Who has not made further deposit or withdrawals during the PRECEDING TEN YEARS OR MORE
E. PROCEDURE TO BE OBSERVED IN CASE OF UNCLAIMED BALANCES
1. Bank notifies the person in whose name the unclaimed balance is deposited; 2. A SWORN STATEMENT is filed by the bank with the TREASURER OF THE PHILIPPINES stating such unclaimed balances.