COMMERCIAL LAW

Banking Law

Mae withdrew funds from the partnership without authority in the amounts of P500th and
US$50th for services he claims he rendered for the partnership's benefit. He put the P500 in
his Prosperity Bank personal peso current account and the US$50 in his Eastern Bank
personal foreign currency savings account. The partnership filed a lawsuit in court against
Mae, Prosperity, and Eastern to compel Mae to return the funds to the partnership and to
order both banks to prohibit any withdrawals from his accounts pending the outcome of the
lawsuit. The court ordered Prosperity to submit Mae's peso current account data and Eastern
to produce his foreign currency savings account records during the case's initial hearing. Can
the court order Prosperity and Eastern to reveal Mae's bank accounts? Complete the
discussion.

ANSWER:
Yes, when it comes to the peso account. In the event that the money placed is the subject of
litigation, Section 2 of RA 1405 provides for the disclosure of bank deposits. A disclosure of
Mae's bank deposits would be appropriate because the lawsuit brought against him is
intended at collecting the amount he took from the partnership funds, which he allegedly
placed in his account. In terms of the foreign currency account, no. The written agreement of
the depositor is an exception to the restriction against publication of information concerning
bank deposits under the Foreign Currency Law.