COMMERCIAL LAW

Banking Law

The Law on the Secretiveness of Bank Deposits, commonly known as RA 1405, aims to
encourage individuals to deposit money into banks and also to prevent private hosting so that
it may be properly used by banks to help the economy flourish in the nation. Is the
notification given on a bank by the creditor of a depositor protected by the above-mentioned
legislation? Tell your answer the(s) reason(s).

ANSWER:
No. At the request of creditors, the warranty served on a bank is not subject to the Bank
Secrecy Act. No. Grinding is only part of the execution procedure. The bank is immediately
liable to the Sheriff for the whole amount of its deposit in the event of a notification of
additions being served on a bank and a deposit by the judgment debtor exists for the benefit
of the judgment creditor. In such a case, the deposit amount is open to dispute in effect.