Rizal Memorial Colleges, Inc.

School of Law

Banking and Related Special Laws

Course Outline

A. General Banking Act (R.A. 8791)

1. Definition and classification of banks

Secs. 1 to 3, 8 to 22

2. Distinction of banks from quasi-banks and trust entities

Secs. 4 to 7

3. Bank powers and liabilities

Sec. 34 to 53

4. Diligence required of banks - relevant jurisprudence

a) Consolidated Bank v. CA & Diaz, G.R. No. 138569. Sept. 11, 2003
b) PNB v. CA, G.R. No. 127469, Jan. 15, 2004
c) PNB v. Pike, G.R. No. 157845, Sept. 20, 2005
d) BPI v. Lifetime Marketing, G.R. No. 176434, June 25, 2008
e) BPI v. Casa Montessori, G.R. No. 149454, May 28, 2004
f) Central Bank vs. Citytrust Bank, G.R. No. 141835, Feb. 4, 2009

5. Nature of bank funds and bank deposits

Sec. 33

a) Allied Bank vs. Lim Sio Wan, G.R. No. 133179, March 27, 2008
b) Associated Bank vs. Tan, G.R. No. 156940, Dec. 14, 2004

6. Stipulation on interests

7. Grant of loans and security requirements

Sec. 37 to 47

a) Benguet Management vs. Keppel Bank, G.R. No. 153571, Sept. 18, 2003
b) San Fernando Rural Bank vs. Pampanga, G.R. No. 168088, April 3, 2007

8. Penalties for violations

Secs. 54 to 57

B. The New Central Bank Act (R.A. 7653, as amended by Republic Act No. 11211)

1. State policies
Sec. 1

2. Creation of the Bangko Sentral ng Pilipinas (BSP)

Sec. 2

3. Responsibility and primary objective

Sec. 3
 4. Monetary board - powers and functions
Secs. 5 to 16

5. How the BSP handles banks in distress

Secs. 19, 25, 29 to 31

6. How the BSP handles exchange crisis

Sec. 61 to 80

Cases:
a) Rural Bank of San Miguel vs. Monetary Board, G.R. No. 150886, Feb. 16, 2007
b) Central Bank Employees Association vs. BSP, G.R. No. 148208. Dec. 15, 2004
c) Miranda vs. PDIC, G.R. No. 169334, September 8, 2006
d) Soriano vs. BSP, G.R. No. 162336, Feb. 1, 2010

C. Law on Secrecy of Bank Deposits (R.A. 1405, as amended)

1. Purpose
2. Prohibited acts
3. Deposits covered
4. Exceptions
5. Garnishment of deposits, including foreign deposits
6. Penalties for violation

Cases:
a) PSBank vs. Senate, G.R. 200238, Feb. 9, 2012 (Resolution, Brion’s & Serreno's)
b) BSB Group vs. Sally Go, G.R. No. 168644, Feb. 16, 2010
c) GSIS vs. Industrial Bank of Korea, G.R. No. 189206, June 8, 2011
d) JV Ejercito vs. Sandiganbayan, G.R. Nos. 157294-95, November 30, 2006

D. Philippine Deposit Insurance Corporation Act (R.A. 3591, as amended)

1. Basic policy
Sec. 1

2. Concept of insured deposits

Sec. 4

3. Liability to depositors
a) Deposit liabilities required to be insured with PDIC (Sec. 5)
b) Commencement of liability (Sec. 4 [g])
c) Deposit accounts not entitled to payment (Sec. 4 [f])
d) Extent of liability (Sec. 4 [g])
e) Determination of insured deposits (Sec. 14)
f) Calculation of liability

Cases:
a) PDIC vs. Citibank, G.R. No. 170290, April 11, 2012
b) PDIC vs. Abad, G.R. No. 126911, April 30, 2003
c) PDIC vs. Aquero, G.R. No. 118917, December 22, 1997
d) PDIC vs. Philippines Countryside Rural Bank, G.R. No. 176438, Jan. 24, 2011
E. Anti-Money Laundering Act (R.A. 9160)

1. Basic Policy
2. Definitions
3. Covered Institutions; Obligations
4. Transactions – Covered and Suspicious
5. Offenses
6. Anti-Money Laundering Council
7. Prevention
8. Powers of AMLC
9. Foreign State Assistance
10. Penal Provisions

Cases:
a) Republic vs. Glasgow Credit, G.R. No. 170281, Jan. 18, 2008
b) Republic vs. Hon. EugenioG.R. No. 174629, February 14, 2008
c) People vs. Estrada, G.R. No. 164368-69, April 2, 2009