Professional Documents
Culture Documents
MERCANTILE LAW TEAM:
184 ADVISER: ATTY. AMADO E. TAYAG; SUBJECT HEAD: EARL M. LOUIE MASACAYAN;
ASST. SUBJECT HEADS: KIMVERLY A. ONG & JOANNA MAY D.G. PEÑADA; MEMBERS: MA. ELISA JONALYN A. BARQUEZ, ANGELI R. CARPIO,
ANTONETTE T. COMIA, ALBAN ROBERT LORENZO F. DE ALBAN, JOEBEN T. DE JESUS, CHRIS JARK ACE M. MAÑO, ANNA MARIE P. OBIETA,
RUBY ANNE B. PASCUA, FLOR ANGELA T. SABAUPAN, GIAN FRANCES NICOLE C. VILCHES
BANKING LAWS
that the action of the BSP is negligence or misconduct. The costs and
aplainly arbitrary (Sec. 25) expenses incurred in defending the
b. Place a bank under receivership or aforementioned action, suit or proceeding may
liquidation (Sec. 30) be paid by the Bangko Sentral in advance of the
c. Initiate criminal prosecution of final disposition of such action, suit or
erring officers of banks proceeding upon receipt of an undertaking by
8. Government agent (Secs. 117‐122)D or on behalf of the member, officer, or
employee to repay the amount advanced
should it ultimately be determined by the
D. MONETARY BOARD
Monetary Board that he is not entitled to be
indemnified as provided in this subsection. (Sec
Q: What is the Monetary Board? 15)
A: The body through which the powers and
functions of the Bangko Sentral are exercised. E. HOW BSP HANDLES BANKS IN DISTRESS
(Sec 6)
Q: What is the function of the BSP on a
Q: What are the powers and functions of the distressed bank?
Monetary Board?
A: Appointment of a conservator or receiver or
A: closure of the bank.
1. Issue rules and regulations it considers
necessary for the effective discharge of Q: Distinguish between the grounds for
the responsibilities and exercise of its conservatorship, receivership and liquidation
powers and their effects.
A: See Appendix F
2. Direct the management, operations,
and administration of the Bangko
(1) CONSERVATORSHIP
Sentral, reorganize its personnel, and
issue such rules and regulations as it
Q: Who is a conservator?
may deem necessary or convenient for
this purpose
A: One appointed if the bank is in the state of
illiquidity or the bank fails or refuses to maintain
3. Establish a human resource
a state of liquidity adequate to protect its
management system
depositors and creditors. The bank still has more
assets than its liabilities but its assets are not
4. Adopt an annual budget for and liquid or not in cash thus it cannot pay its
authorize such expenditures by the obligation when it falls due. The bank, not the
Bangko Sentral as are in the interest of Central Bank, pays for fees.
the effective administration and
operations of the Bangko Sentral in Q: What are the powers of a conservator?
accordance with applicable laws and
regulations A:
1. To take charge of the assets, liabilities,
5. Indemnify its members and other and the management thereof
officials of the Bangko Sentral, including 2. Recognize the management
personnel of the departments 3. collect all monies and debts due said
performing supervision and bank
examination functions against all costs 4. Exercise all powers necessary to restore
and expenses reasonably incurred by its viability with the power to overrule
such persons in connection with any or revoke the actions of the previous
civil or criminal action. (Sec 15) management and board of directors of
the bank or quasi‐bank (First Philippine
Note: In the event of a settlement or International Bank vs. CA, G.R. No.
compromise, indemnification shall be provided 115849, Jan. 24, 1996).
only in connection with such matters covered
by the settlement as to which the Bangko Note: Such powers cannot extend to post
Sentral is advised by external counsel that the facto repudiation of perfected
person to be indemnified did not commit any transactions. Thus, the law merely gives
U N I V E R S I T Y O F S A N T O T O M A S
185
ACADEMICS CHAIR: LESTER JAY ALAN E. FLORES II
VICE CHAIRS FOR ACADEMICS: KAREN JOY G. SABUGO & JOHN HENRY C. MENDOZA
V ICE CHAIR FOR ADMINISTRATION AND FINANCE: JEANELLE C. LEE Facultad de Derecho Civil
VICE CHAIRS FOR LAY‐OUT AND DESIGN: EARL LOUIE M. MASACAYAN & THEENA C. MARTINEZ
MERCANTILE LAW TEAM:
186 ADVISER: ATTY. AMADO E. TAYAG; SUBJECT HEAD: EARL M. LOUIE MASACAYAN;
ASST. SUBJECT HEADS: KIMVERLY A. ONG & JOANNA MAY D.G. PEÑADA; MEMBERS: MA. ELISA JONALYN A. BARQUEZ, ANGELI R. CARPIO,
ANTONETTE T. COMIA, ALBAN ROBERT LORENZO F. DE ALBAN, JOEBEN T. DE JESUS, CHRIS JARK ACE M. MAÑO, ANNA MARIE P. OBIETA,
RUBY ANNE B. PASCUA, FLOR ANGELA T. SABAUPAN, GIAN FRANCES NICOLE C. VILCHES
BANKING LAWS
MERCANTILE LAW TEAM:
188 ADVISER: ATTY. AMADO E. TAYAG; SUBJECT HEAD: EARL M. LOUIE MASACAYAN;
ASST. SUBJECT HEADS: KIMVERLY A. ONG & JOANNA MAY D.G. PEÑADA; MEMBERS: MA. ELISA JONALYN A. BARQUEZ, ANGELI R. CARPIO,
ANTONETTE T. COMIA, ALBAN ROBERT LORENZO F. DE ALBAN, JOEBEN T. DE JESUS, CHRIS JARK ACE M. MAÑO, ANNA MARIE P. OBIETA,
RUBY ANNE B. PASCUA, FLOR ANGELA T. SABAUPAN, GIAN FRANCES NICOLE C. VILCHES
BANKING LAWS
MERCANTILE LAW TEAM:
190 ADVISER: ATTY. AMADO E. TAYAG; SUBJECT HEAD: EARL M. LOUIE MASACAYAN;
ASST. SUBJECT HEADS: KIMVERLY A. ONG & JOANNA MAY D.G. PEÑADA; MEMBERS: MA. ELISA JONALYN A. BARQUEZ, ANGELI R. CARPIO,
ANTONETTE T. COMIA, ALBAN ROBERT LORENZO F. DE ALBAN, JOEBEN T. DE JESUS, CHRIS JARK ACE M. MAÑO, ANNA MARIE P. OBIETA,
RUBY ANNE B. PASCUA, FLOR ANGELA T. SABAUPAN, GIAN FRANCES NICOLE C. VILCHES
BANKING LAWS
responsible for the illegal acquisition. (Mellon Q: How about foreign currency deposits, can
Bank, N.A. v. Magsino, G.R. No. 71479, Oct. 18, they be subject to garnishment?
1990)
A:
Q: The Law on Secrecy of Bank Deposits provides GR: Foreign currency deposits shall be
that all deposits of whatever nature with banks exempt from attachment, garnishment, or
or banking institutions are absolutely any other order or process of any court,
confidential in nature and may not be examined, legislative body, government agency or any
inquired or looked into by any person, administrative body whatsoever. (Sec 8. R.A.
governmental official, bureau or office. 6426)
However, the law provides exceptions in certain
instances. Which of the following may not be XPN: The application of Section 8 of R.A. 6426
among the exceptions? depends on the extent of its justice. The
1. in cases of impeachment garnishment of a foreign currency deposit
2. in cases involving bribery should be allowed to prevent injustice and for
3. in cases involving BIR inquiry equitable grounds, otherwise, it would negate
4. in cases of anti‐graft and corrupt Article 10 of the New Civil Code which
practices provides that “in case of doubt in the
5. in cases where the money involved is the interpretation or application of laws, it is
subject of litigation presumed that the lawmaking body intended
right and justice to prevail. (Salvacion vs.
A: Under Section 6(F) of the National Internal Central Bank of the Philippines, G.R. 94723,
Revenue Code, the Commissioner of Internal August 21, 1997)
Revenue can inquire into the deposits of a
decedent for the purpose of determining the Q: Can the foreign currency deposit of a
gross estate of such decedent. Apart from this transient foreigner who illegally detained and
case, a BIR inquiry into bank deposits cannot be raped a minor Filipina, be garnished to satisfy
made. the award for damages to the victim?
Thus, exception 3 may not always be applicable. A: The exemption from garnishment of foreign
Turning to exception 4, an inquiry into bank currency deposits under R.A. 6426 cannot be
deposits is possible only in prosecutions for invoked to escape liability for the damages to the
unexplained wealth under the Anti‐graft and victim. The garnishment of the transient
Corrupt Practices Act. However, all other cases of foreigner’s foreign currency deposit should be
anti‐graft and corrupt practices will not warrant allowed to prevent injustice and for equitable
an inquiry into bank deposits. Thus, exception 4 grounds. The law was enacted to encourage
may not always be applicable. Like any other foreign currency deposit and not to benefit a
exception, it must be interpreted strictly. wrongdoer. (Salvacion vs. Central Bank of the
Philippines, G.R. 94723, August 21, 1997)
Exceptions 1, 2, and 5 on the other hand, are
provided expressly in the Law on Secrecy of Bank F. PENALTIES FOR VIOLATION
Deposits. They are available to depositors at all
times. (2004 Bar Question) Q: What are the penalties for violation of R.A.
1405?
E. GARNISHMENT OF DEPOSITS, INCLUDING
FOREIGN DEPOSITS A: The penalty of imprisonment of not more than
5 years or a fine of not more than 20,000pesos or
Q: Does garnishment of a bank deposit violate both, in the discretion of the court shall be
the law? imposed upon any official or employee of a
banking institution who, upon conviction, was
A: No, the prohibition against examination does found to have violated R.A. 1405.
not preclude its being garnished for satisfaction
of judgment. The disclosure is purely incidental to
the execution process and it was not the
intention of the legislature to place bank deposits
beyond the reach of judgment creditor. (PCIB v.
CA, G.R. No. 84526, Jan. 28, 1991)
U N I V E R S I T Y O F S A N T O T O M A S
191
ACADEMICS CHAIR: LESTER JAY ALAN E. FLORES II
VICE CHAIRS FOR ACADEMICS: KAREN JOY G. SABUGO & JOHN HENRY C. MENDOZA
V ICE CHAIR FOR ADMINISTRATION AND FINANCE: JEANELLE C. LEE Facultad de Derecho Civil
VICE CHAIRS FOR LAY‐OUT AND DESIGN: EARL LOUIE M. MASACAYAN & THEENA C. MARTINEZ
MERCANTILE LAW TEAM:
192 ADVISER: ATTY. AMADO E. TAYAG; SUBJECT HEAD: EARL M. LOUIE MASACAYAN;
ASST. SUBJECT HEADS: KIMVERLY A. ONG & JOANNA MAY D.G. PEÑADA; MEMBERS: MA. ELISA JONALYN A. BARQUEZ, ANGELI R. CARPIO,
ANTONETTE T. COMIA, ALBAN ROBERT LORENZO F. DE ALBAN, JOEBEN T. DE JESUS, CHRIS JARK ACE M. MAÑO, ANNA MARIE P. OBIETA,
RUBY ANNE B. PASCUA, FLOR ANGELA T. SABAUPAN, GIAN FRANCES NICOLE C. VILCHES
BANKING LAWS
U N I V E R S I T Y O F S A N T O T O M A S
193
ACADEMICS CHAIR: LESTER JAY ALAN E. FLORES II
VICE CHAIRS FOR ACADEMICS: KAREN JOY G. SABUGO & JOHN HENRY C. MENDOZA
V ICE CHAIR FOR ADMINISTRATION AND FINANCE: JEANELLE C. LEE Facultad de Derecho Civil
VICE CHAIRS FOR LAY‐OUT AND DESIGN: EARL LOUIE M. MASACAYAN & THEENA C. MARTINEZ
194 ADVISER: ATTY. AMADO E. TAYAG; SUBJECT HEAD: EARL M. LOUIE MASACAYAN;
ASST. SUBJECT HEADS: KIMVERLY A. ONG & JOANNA MAY D.G. PEÑADA; MEMBERS: MA. ELISA JONALYN A. BARQUEZ, ANGELI R. CARPIO,
ANTONETTE T. COMIA, ALBAN ROBERT LORENZO F. DE ALBAN, JOEBEN T. DE JESUS, CHRIS JARK ACE M. MAÑO, ANNA MARIE P. OBIETA,
RUBY ANNE B. PASCUA, FLOR ANGELA T. SABAUPAN, GIAN FRANCES NICOLE C. VILCHES
BANKING LAWS
A: No. The bank is negligent because the d. Time deposit – an account with
depositor did not present the certificate of fixed term; payment of which
deposit (Citybank, N.A., vs. Sps. Cabamongan, cannot be legally required within
G.R. No. 146918, May 2, 2006). such a specified number of days.
Q: Is the bank liable when an employee 2. As trustee‐trustor: Trust account – a
encashed a check without the requisite of savings account, established under a
endorsement? trust agreement containing funds
administered by the bank for the
A: Yes. The fiduciary nature of the relationship benefit of the trustor or another person
between the bank and the depositors must or persons.
always be of paramount concern. (Philippine
Savings Bank vs. Chowking, G.R. No. 177526, July 3. As agent‐principal:
04, 2008). a. Deposit of checks for collection
b. Deposit for specific purpose
E. NATURE OF BANK FUNDS AND BANK c. Deposit for safekeeping
DEPOSITS
Q: What are the types of deposit accounts?
Q: What is the deposit function of banks?
A:
A: The function of the bank to receive a thing, 1. Individual; or
primarily money, from depositors with the 2. Joint:
obligation of safely keeping it and returning the a. “And” account – the signature of
same. both co‐depositors are required for
withdrawals.
Q: What are the kinds of deposits between a b. “And/or” account – either one of
bank and its depositors? the co‐depositors may deposit and
withdraw from the account
A: without the knowledge consent
1. As debtor‐creditor: and signature of the other.
a. Demand deposits – all those
liabilities of banks which are Q: Is an anonymous account prohibited?
denominated in the Philippine
currency and are subject to A:
payment in legal tender upon GR: Anonymous accounts or those under
demand by representation of fictitious names are prohibited. (R.A. 9160 as
checks. amended by by R.A. 9194; BSP Circular No.
251, July 21, 2000)
b. Savings deposits – the most
common type of deposit and is XPN: In case where numbered accounts is
usually evidenced by a passbook. allowed such as in foreign currency deposits.
However, banks/non‐bank financial
Note: The requirement of institutions should ensure that the client is
presentation of passbooks is usually identified in an official or other identifying
included in the terms and conditions documents. (Sec. 8, R.A. 6426 as amended,
printed in the passbooks. A bank is FCDA)
negligent if it allows the withdrawal
without requiring the presentation of Q: What is the nature of a bank deposit?
passbook (BPI v. CA, GR No. 112392,
Feb. 29, 2000).
A: All kinds of bank deposits are loan. The bank
can make use as its own the money deposited.
c. Negotiable order of withdrawal
Said amount is not being held in trust for the
account (NOWA) – Interest‐bearing
depositor nor is it being kept for safekeeping.
deposit accounts that combine he
(Tang Tiong Tick v. American Apothecaries, G.R.
payable on demand feature of
No. 43682, Mar. 31, 1938)
checks and investment feature of
saving accounts.
U N I V E R S I T Y O F S A N T O T O M A S
195
ACADEMICS CHAIR: LESTER JAY ALAN E. FLORES II
VICE CHAIRS FOR ACADEMICS: KAREN JOY G. SABUGO & JOHN HENRY C. MENDOZA
V ICE CHAIR FOR ADMINISTRATION AND FINANCE: JEANELLE C. LEE Facultad de Derecho Civil
VICE CHAIRS FOR LAY‐OUT AND DESIGN: EARL LOUIE M. MASACAYAN & THEENA C. MARTINEZ
MERCANTILE LAW TEAM:
196 ADVISER: ATTY. AMADO E. TAYAG; SUBJECT HEAD: EARL M. LOUIE MASACAYAN;
ASST. SUBJECT HEADS: KIMVERLY A. ONG & JOANNA MAY D.G. PEÑADA; MEMBERS: MA. ELISA JONALYN A. BARQUEZ, ANGELI R. CARPIO,
ANTONETTE T. COMIA, ALBAN ROBERT LORENZO F. DE ALBAN, JOEBEN T. DE JESUS, CHRIS JARK ACE M. MAÑO, ANNA MARIE P. OBIETA,
RUBY ANNE B. PASCUA, FLOR ANGELA T. SABAUPAN, GIAN FRANCES NICOLE C. VILCHES
BANKING LAWS
G. GRANT OF LOANS AND SECURITY the bank could grant should at no time
REQUIREMENTS exceed 25% of the bank’s net worth.
(Sec 35.1, GBL)
Q: What is net worth?
XPN:
A: The total of the unimpaired paid‐in surplus, a. As the Monetary Board may
retained earnings and undivided profit, net of otherwise prescribe for reasons
valuation reserves and other adjustments as may of national interest
be required by the BSP. (Sec. 24.2) b. Deposits of rural banks with
government‐owned or controlled
Q: What is risked based capital? financial institutions like LBP,
DBP, and PNB.
A: The minimum ratio prescribed by the
Monetary Board which the net worth of a bank 2. The total amount of loans, credit
must bear to its total risk assets which may accommodations and guarantees
include contingent accounts. prescribed in (a) may be increased by an
additional 10% of the net worth of such
Note: However, the Monetary Board may require or bank provided that additional liabilities
suspend compliance with such ratio whenever are adequately secured by trust receipt,
necessary for a maximum period of one year and shipping documents, warehouse
that such ratio shall be applied uniformly to banks of receipts and other similar documents
the same category (Sec. 34). which must be fully covered by an
insurance. (Sec. 35.2, GBL)
Q: What is the effect of non‐compliance with the
ratio? 3. Loans and other credit accommodations
secured by REM shall not exceed 75% of
A: the appraised value of the real estate
1. Distribution of net profits may be security plus 60% of the appraised value
limited or prohibited and MB may of the insured improvements (Sec. 37,
require that part or all of the net profits GBL)
be used to increase the capital accounts
of the bank until the minimum CM/intangible property such as patents,
requirement has been met; or trademarks, etc. shall not exceed 75% of
the appraised value of the security (Sec.
2. GR: Acquisition of major assets and 38, GBL)
making of new investments may be
restricted. 4. Loans being contractual, the period of
payment may be subject to stipulation
XPN: purchases of evidence of by the parties. In the case of
indebtedness guaranteed by the amortization, the amortization schedule
Government (Sec. 34). has no fixed period as it depends on the
project to be financed such that if it was
Note: In case of a bank merger or capable of raising revenues, it should be
consolidation, or when a bank is under at least once a year with a grace period
rehabilitation under a program approved of 3 years if the project to be financed is
by BSP, the MB may temporarily relieve not that profitable which could be
the surviving bank, consolidated bank, or deferred up to 5 years if the project was
constituent bank or corporations under not capable of raising revenues. (Sec.
rehabilitation from full compliance with 44, GBL)
the required capital ratio. (Sec. 5)
5. Loans granted to DOSRI:
Q: What are the limitations imposed upon banks a. Director
with respect to its loan function? b. Officer
c. Stockholder, which should at least
A: 1% (if below 1% ‐ not anymore
1. GR: Single borrower’s limit – The total covered)
amount of loans, credit d. Related Interests, such as DOS’s
accommodations and guarantees that spouses, their relatives within the
U N I V E R S I T Y O F S A N T O T O M A S
197
ACADEMICS CHAIR: LESTER JAY ALAN E. FLORES II
VICE CHAIRS FOR ACADEMICS: KAREN JOY G. SABUGO & JOHN HENRY C. MENDOZA
V ICE CHAIR FOR ADMINISTRATION AND FINANCE: JEANELLE C. LEE Facultad de Derecho Civil
VICE CHAIRS FOR LAY‐OUT AND DESIGN: EARL LOUIE M. MASACAYAN & THEENA C. MARTINEZ
198 ADVISER: ATTY. AMADO E. TAYAG; SUBJECT HEAD: EARL M. LOUIE MASACAYAN;
ASST. SUBJECT HEADS: KIMVERLY A. ONG & JOANNA MAY D.G. PEÑADA; MEMBERS: MA. ELISA JONALYN A. BARQUEZ, ANGELI R. CARPIO,
ANTONETTE T. COMIA, ALBAN ROBERT LORENZO F. DE ALBAN, JOEBEN T. DE JESUS, CHRIS JARK ACE M. MAÑO, ANNA MARIE P. OBIETA,
RUBY ANNE B. PASCUA, FLOR ANGELA T. SABAUPAN, GIAN FRANCES NICOLE C. VILCHES
BANKING LAWS
accept new deposits or make new any deposit, collection of loans and/or
investments receivables, or who pays out or permits or causes
to be transferred any securities or property of
4. Suspension of interbank clearing said bank shall be subject to the penal provisions
privileges; and/or of the New Central Bank Act (Sec. 70 GBL).
5. Revocation of quasi‐banking license. IV. PHILIPPINE DEPOSIT INSURANCE
(Sec 37, NCBA) CORPORATION
(R.A. 3591 AS AMENDED BY R.A. 9302)
Note: Resignation or termination from
office shall not exempt such director or A. BASIC POLICY
officer from administrative or criminal
sanctions. Q. What is the basic policy for the creation of the
PDIC?
Q: Who may file a criminal case for violations of
banking laws? A: PDIC shall promote and safeguard the interests
of the depositing public by way of providing
A: It does not appear from the law that only the permanent and continuing insurance coverage in
Central Bank or its respondent officials can cause all insured deposits. (As Amended by Sec. 1, R.A.
the prosecution of alleged violations of banking 9302)
laws. Said violations constitute a public offense,
the prosecution of which is a matter of public Q: What is the coverage of the insurance?
interest and hence, anyone – even private
individuals – can denounce such violations before A: The deposit liabilities of any bank or banking
the prosecuting authorities. (Perez v. Monetary institution, which is engaged in the business of
Board, G.R. No. L‐23307, June 30, 1967) receiving deposits, shall be insured with PDIC. The
coverage is compulsory.
Q: May the Monetary Board issue sanctions on
unfit directors? B. CONCEPT OF INSURED DEPOSITS
A: Yes. After due notice to the board of directors Q: What is an insured deposit?
of the bank, the Monetary Board may disqualify,
suspend or remove any bank director or officer A: Insured deposit means the amount due to any
who commits or omits an act which render him bona fide depositor for legitimate deposits in an
unfit for the position. In determining whether an insured bank net of any obligation of the
individual is fit and proper to hold the position of depositor to the insured bank as of the date of
a director or officer of a bank, regard shall be closure, but not to exceed P500,000.00. Such net
given to his integrity, experience, education, amount shall be determined according to such
training, and competence. (Sec. 16, GBL) regulations as the Board of Directors may
prescribe. (As amended by Sec. 3, R.A. 9576)
Q: How could a bank be dissolved?
C. LIABILITY TO DEPOSITORS
A:
1. Voluntary Liquidation (Sec. 68 GBL) (1) DEPOSIT LIABILITIES REQUIRED TO BE
2. Receivership and Involuntary INSURED WITH PDIC
Liquidation (Sec. 69 GBL)
Q: What are deposits covered by insurance?
Q: What is the penalty for transactions after the
bank becomes insolvent? A:
1. The unpaid balance of money or its
A: Any director or officer of any bank declared equivalent received by a bank in the usual
insolvent or placed under receivership by the course of business and for which it has
Monetary Board who refuses to turn over the given of is obliged to give credit to a
bank's records and assets to the designated commercial, checking, savings, time or
receivers, or who tampers with banks records, or thrift account, or issued in accordance
who appropriates for himself for another party or with Banko Sentral rules and regulations
destroys or causes the misappropriation and and other applicable laws, together with
destruction of the bank's assets, or who receives such other obligations of a bank, which,
or permits or causes to be received in said bank
U N I V E R S I T Y O F S A N T O T O M A S
199
ACADEMICS CHAIR: LESTER JAY ALAN E. FLORES II
VICE CHAIRS FOR ACADEMICS: KAREN JOY G. SABUGO & JOHN HENRY C. MENDOZA
V ICE CHAIR FOR ADMINISTRATION AND FINANCE: JEANELLE C. LEE Facultad de Derecho Civil
VICE CHAIRS FOR LAY‐OUT AND DESIGN: EARL LOUIE M. MASACAYAN & THEENA C. MARTINEZ
MERCANTILE LAW TEAM:
200 ADVISER: ATTY. AMADO E. TAYAG; SUBJECT HEAD: EARL M. LOUIE MASACAYAN;
ASST. SUBJECT HEADS: KIMVERLY A. ONG & JOANNA MAY D.G. PEÑADA; MEMBERS: MA. ELISA JONALYN A. BARQUEZ, ANGELI R. CARPIO,
ANTONETTE T. COMIA, ALBAN ROBERT LORENZO F. DE ALBAN, JOEBEN T. DE JESUS, CHRIS JARK ACE M. MAÑO, ANNA MARIE P. OBIETA,
RUBY ANNE B. PASCUA, FLOR ANGELA T. SABAUPAN, GIAN FRANCES NICOLE C. VILCHES
BANKING LAWS
same bank, he can only recover up to 1. A has P400,000 deposit – can recover
P500,000.00. He is considered as one depositor. P400,000
2. A has P200,000 deposit in 3 branches –
Q: Is the liability of PDIC on a per bank or per only P500,000
branch basis? 3. A has P200,000 deposit in 3 branches of
XYZ and another P200,000 deposit in 3
A: Per bank basis. (Catindig 2003, Verde branches of ABC – P500,000 on each bank
4. A and/or B P600,000 deposit – half
Publications)
(P300,000) each
Q: How do you determine the amount due to a Note: Individually‐owned accounts are insured
depositor? separately from joint accounts. If depositor made
more than 1 joint account, the maximum amount he
A: In determining such amount due to any can recover is only up to 250,000.
depositor, there shall be added together all
deposits in the bank maintained in the same right (c) MODE OF PAYMENT
and capacity for his benefit either in his own
name and the name of the others. Q: What are the modes of payment of an insured
deposit?
(b) JOINT ACCOUNTS
A:
Q: How is the amount due determined in case of 1. By cash; or
joint account? 2. By making available to each depositor a
transferred deposit in another insured
A: A joint account regardless of whether the bank in an amount equal to insured
conjunction “and,” “or,” “and/or” is used, shall be deposit of such depositor. (Sec. 14 R.A.
insured separately from any individually‐owned 3591, as amended)
deposit account: Provided, that:
Note: Provided: PDIC , in its discretion, may require
1. If the account is held jointly by two or proof of claims to be filed before paying the insured
more natural persons, or by two or deposits, and that in any case where PDIC is not
more juridical persons or entities, the satisfied as to the viability of a claim for an insured
maximum insured deposit shall be deposit, it may require final determination of a court
divided into as many equal shares as of competent jurisdiction before paying such claim.
there are individuals, juridical persons (Sec. 14 R.A. 3591, as amended)
or entities, unless a different sharing is
stipulated in the document of deposit; (d) EFFECT OF PAYMENT OF INSURED DEPOSIT
and
Q: What are the effects of payment to the
2. If the account is held by a juridical depositor of his insured deposit?
person or entity with one or more
natural persons, the maximum insured A:
shall be presumed to belong entirely to 1. PDIC is discharged from any further
such juridical person or entity. liability to the depositor; and
2. PDIC is subrogated to all the rights of
Note: The aggregate of the interests of each co‐ the depositor against the closed bank to
owner over several joint accounts, whether owned the extent of such payment.
by the same or different combinations of individuals,
juridical persons or entities, shall likewise be subject (e) PAYMENTS OF INSURED DEPOSITS AS
to the maximum insured deposit of P500,000.00. PREFERRED CREDIT UNDER ARTICLE 2244, CIVIL
CODE
The provisions of any law to the contrary
notwithstanding, no owner/holder of any negotiable Q: Are insured deposits paid by PDIC to the
certificate of deposit shall be recognized as a depositor/s preferred credits under Article 2244
depositor entitled to the rights provided in this Act
against the close bank?
unless his name is registered as owner/holder
thereof in the books of the issuing bank [Sec. 4 (g)].
A: Yes. All payments by PDIC of insured deposits
Illustration: in closed banks partake of the nature of public
funds, and as such, must be considered a
preferred credit similar to taxes due to the
U N I V E R S I T Y O F S A N T O T O M A S
201
ACADEMICS CHAIR: LESTER JAY ALAN E. FLORES II
VICE CHAIRS FOR ACADEMICS: KAREN JOY G. SABUGO & JOHN HENRY C. MENDOZA
V ICE CHAIR FOR ADMINISTRATION AND FINANCE: JEANELLE C. LEE Facultad de Derecho Civil
VICE CHAIRS FOR LAY‐OUT AND DESIGN: EARL LOUIE M. MASACAYAN & THEENA C. MARTINEZ
MERCANTILE LAW TEAM:
202 ADVISER: ATTY. AMADO E. TAYAG; SUBJECT HEAD: EARL M. LOUIE MASACAYAN;
ASST. SUBJECT HEADS: KIMVERLY A. ONG & JOANNA MAY D.G. PEÑADA; MEMBERS: MA. ELISA JONALYN A. BARQUEZ, ANGELI R. CARPIO,
ANTONETTE T. COMIA, ALBAN ROBERT LORENZO F. DE ALBAN, JOEBEN T. DE JESUS, CHRIS JARK ACE M. MAÑO, ANNA MARIE P. OBIETA,
RUBY ANNE B. PASCUA, FLOR ANGELA T. SABAUPAN, GIAN FRANCES NICOLE C. VILCHES
BANKING LAWS
within 120 days immediately preceding or during
a bank‐declared bank holiday, or immediately
preceding a closure order by the Monetary Board
of the BSP for the purpose of availing of the
maximum deposit insurance coverage. (Sec
21(f)(5) R.A. 3591, as amended)
Q: What is the penalty for splitting of deposits?
A: The penalty of prision mayor or a fine of not
less than 50,000.00 but not more than
2,000,000.00, or both, at the discretion of the
court. (Sec. 21(f) R.A. 3591, as amended)
Q: What is rule regarding issuances of TROs, etc.
against PDIC for acts under R.A. 3591, as
amended?
A:
GR: No court, except the Court of Appeals,
shall issue any temporary restraining order,
preliminary injunction or preliminary
mandatory injunction against PDIC for any
action under R.A. 3591, as amended. Such
prohibition applies in all cases, disputes or
controversies instituted by a private party,
the insured bank, or any shareholder of the
insured bank.
XPN: The Supreme Court may issue a
restraining order or injunction when the
matter is of extreme urgency involving
constitutional issue, such that unless a
temporary restraining order is issued, grave
injustice and irreparable injury will arise.
U N I V E R S I T Y O F S A N T O T O M A S
203
ACADEMICS CHAIR: LESTER JAY ALAN E. FLORES II
VICE CHAIRS FOR ACADEMICS: KAREN JOY G. SABUGO & JOHN HENRY C. MENDOZA
V ICE CHAIR FOR ADMINISTRATION AND FINANCE: JEANELLE C. LEE Facultad de Derecho Civil
VICE CHAIRS FOR LAY‐OUT AND DESIGN: EARL LOUIE M. MASACAYAN & THEENA C. MARTINEZ