Professional Documents
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1. Debtor-Creditor Relationship
It is a contract of loan and not deposit
Contract between bank and depositor is
7.
governed by the provisions of the NCC on
simple loan (Consolidated Bank and Trust
Corp vs. CA)
2. Fiduciary duty
Fiduciary relationship banks obligation
to observe high standard of integrity and
performance (Phil. Banking Corp. vs. CA)
8.
3. Not a trust agreement
9.
It is not a trust agreement and failure to
10.
pay a loan is not a breach of trust
It is not a trust agreement because banks
do not accept deposits to enrich depositors
but to earn for themselves
11.
4. Indispensable Institution
Has a vital role in economic life
Significance of banking institution to
commercial transactions (Metropolitan
Bank & Trust Co. vs. Cabilzo)
5. Impressed with public interest
Has public interest because people depend
on the honesty and efficiency of banks
Stability of banks largely depends on the
confidence of the people in the honesty
and efficiency of banks.
6. Degree of diligence
Diligence higher than that of a good father.
It must be extraordinary diligence
In Simex International vs. CA, the bank is
under obligation to treat the accounts of its
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
Moral damages
Gen. Rule a corporation is not entitled
to moral damages
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
Management,
Organization of Banks
Type of Bank
Amount (M)
Universal
4,950
Commercial
2,400
Thrift banks
1. Head office in Manila
325
2. Otherwise
52
Rural Banks
1. Within Manila
26
2. Cebu/Davao
13
3. 1st-3rd class city and 1st class 6.5
municipality
4. 4th-6th class city and 2-4th class 3.9
municipality
5. 5th-6th class municipality
2.6
At least 25% of total authorized capital stock shall
be subscribed by subscribers of proposed bank
25% of such subscription shall be paid-up. It shall
not be less than the minimum capital requirement
Incorporators/subscribers and proposed directors
and officers must be (2) persons of integrity and
(1) good credit standing
Such persons must (1) not be convicted of crime
involving moral turpitude and (2) not officers of
Stockholdings
1. Treasury Stocks
GBL provides that NO bank shall:
i. Purchase or acquire shares of its
own capital stock
ii. accept own shares as security for
loan
1. Except if it approved by
MB and will be returned
in 6 months
Reason: if banks were allowed to have a
lien in their own stocks for indebtedness
of stockholders, prohibition against
granting loans or discounts upon security
would become ineffective
2. Foreign stockholdings:
Foreign individuals and non-banks can
own 40% of voting stock of domestic
bank.(aggregate foreign voting stocks)
A Filipino individual and domestic nonbank may each own up to 40% of the
voting stock (no aggregate ceiling)
Citizenship of the corporation shall follow
the citizenship of the controlling
stockholders (>50%)
The percentage of foreign-owned voting
stocks in a bank shall be determined by
the citizenship of individual stockholders
At least 60% of voting stock in any
commercial bank shall be owned by
Filipino citizens
In thrift banks, it shall be at least 40%
Rural banks, 100% Filipinos
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
Board of Directors
ATMs
Independent Auditor
Financial Statements
Settlement of Disputes
I. Kinds of Deposits
1. Demand deposits
1.c. Checks
2. Savings Deposits
If the joint account is and, both signatures of codepositors are required before withdrawals
If and/or either their signature is sufficient
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
4. Time Deposits
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
10
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
11
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
1. Commercial bank
2. Investment house
3. Invest in non-allied enterprises
Equity Investments of Universal bank
12
13
Effect of Non-compliance
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
14
Pacto commisorio
Inclusion to Limit
Assignment of Credits
Exclusion to limit
15
Effect of violation
Limit on loans
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
16
Applicability of DOSRI
government borrowing
rules
and
regulation
to
purposes
of
loans
and
credit
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
Escalation Clause
17
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
Legal compensation
18
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
19
Effect of violation
Protect citizen from lack of awareness of trust cost
of credit to the user by assuring full disclosure of
such cost and prevent uninformed use of credit
Disclosure
Definition
Exemption of government
Exempted transactions
Penalties
1. Civil any creditor who fails to disclose shall be
liable for P100 or amount equal to twice of finance
charge required
a. Whichever is higher
b. Liability shall not exceed 2k
c. Must be brought within 1 year from date
of occurrence
2. Criminal fine not less than 1k or not more than
5k or imprisonment for not less than 6 mos nor
more than 1 year or both
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
20
Estoppel
Writ of possession
X. Major investments
21
22
Minimum requirements
Information to be disclosed
Confidentiality if information
Offset
Handling of complaints
23
Mode of payment
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
No director shall:
1. Make false entries in any bank report
2. Without order of court, disclose to an
unauthorized persons an information
relative to funds or properties in custody
of customers
3. Accept gifts, fees or commission in
connection for approval of loan
4. Overvalue a security for purpose of
influencing actions of bank
5. Outsource inherent banking functions
This is to ensure secrecy of bank
deposits
No borrow shall
1. Fraudulently overvalue security for loan
2. Furnish false material facts to obtain or
increase loan
3. Attempt to defraud bank in event of court
action to recover loan
4. Offer any DOE any gift, fee, commission
to influence person to approve loan
No examiner, officer or employee of BSP assigned
to supervise, examiner rendering technical
assistance to bank shall commit the foregoing acts
No bank shall employ causal or non-regular
personnel or too lengthy probationary personnel in
business involving bank deposits
Prohibited acts
24
Remuneration
Qualification of conservator
Conservator
must
be
competent
and
knowledgeable
in
bank
operations and
management
Period of conservatorship shall not exceed 1 year
25
Expenses of conservatorship
Terminations of conservatorship
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
Voluntary liquidation
2. Procedure
26
3. Prohibited acts
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
27
4. Stay of execution
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
28
Liabilities
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
I. Foreign Banks
Transacting business in the Philippines
29
Laws applicable
Head office guarantee
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
30
Minimum capitalization
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
31
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
32
Money of government
QUIZZES:
True or False:
1. The fiduciary nature of the relationship of a
depositor with the depositary bank imposes on the
latter the obligation to discharge the highest
standard of trust and integrity and a violation
thereof is considered a breach of trust. False
2. The humble wage-earner has not hesitated to
entrust his lifes savings to the bank knowing that
they will be safe in the custody of the banks. True
3. Banks are gratuitous bailees of the funds deposited
with them by their clients. False
4. The public relies on the banks fiduciary duty to
observe the highest degree of diligence but any
violation of this duty by the bank is not a valid
ground for the grant of exemplary damages to the
depositor. False
5. Thrift banks may not act as correspondent for
other financial institutions. False
6. A non-stock corporation may act as a trustee or
administer any trust or hold property in trust or on
deposit for the benefit of others. False
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
33
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
34
Summary of Laws
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
35
Chapter 2
RA 7653 The New Central Bank Act
Chapter 3
RA 1405 Secrecy of bank Deposit Act
RA 8367 an act providing for the organization and
operation of non stock savings and loan association
RA 9160 an act defining the crime money laundering
RA 6770 the ombudsman act of 1989
Chapter 4
RA 7394 Consumer Act
Act No 3135 an act to regulate the sale of property under
special powers inserted in or annexed to real estate
mortgages
Chapter 6
PD 1034 Offshore Banking System Decree
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
36
Estoppel
Composition
37
Vacancies
Qualification of members of MB
1. Natural born citizens
2. At least 35 years of age, Governor must be 40
years old
3. Good moral character
4. Integrity
5. Probity and patriotism
6. Recognized competence in social and economic
disciplines
Disqualification of MB members
1. Disqualification under RA 6713 (Code of Conduct
and ethical standards of public officer and
employees)
2. Disqualified from being a DOSRI of any bank
subject to the supervision or examination of BSP
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
38
Scope of authority of MB
Responsibility of Members of MB
1. If anyone wilfully violate NCBA or guilty of
negligence, abuses or malfeasance or
misfeasance or fails to exercise extraordinary
diligence in performance of duty, he shall be held
liable for loss or injury suffered by BSP or
banking institution (VNAMMFe)
2. Similar responsibility shall apply to officer or
employees of BSP
39
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
Emergencies (CRM)
1. In case of emergency, governor with concurrence
of 2 other members, may decide matter or take
action within authority of the board
2. Governor shall submit report to President and
Congress within 72 hours
3. At soonest possible time, governor shall call
meeting of MB for ratification
Limitation on outside interest of governor and members of
board
40
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
41
Service Fees
VIII. Administration
Operating departments of BSP
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
42
Penalty 100k-200k
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
43
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
Definition of Currency
Value of Currency
44
Interconvertibility of currency
45
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
International Reserves
Means of Action
46
Whenever:
1. International reserve falls to a level
inadequate to meet prospective net
demands for foreign currencies
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
In order to:
1. Achieve primary objective (price stability)
2. Protect international reserves
3. And in time of national emergency, give
MB time to takes constructive measures to
forestall or combat crisis
The MB with concurrency of 5 members and with
approval of President may:
1. Temporary suspend or restrict sale of
exchange
2. Subject all transactions in gold and
FOREX to license
3. Require FOREX obtained by anyone be
delivered to BSP at effective exchange
rate. Foreign currency deposits RA 6426
(Foreign Currency Deposit System) shall
be exempted
47
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
Guiding Principles
48
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
When Granted
1. In period of national or local emergency or
financial panic, MB may at 5 members vote,
authorize grant of extraordinary loans to banks
secured by assets
o Such loans shall not expand the banks
total volume of loans or investments
2. MB, at 5 members vote, grant emergency loans to
banks even during normal period to assist bank in
precarious financial condition brought by
unforeseen events or foreseeable events though
inevitable
o Bank should not be insolvent and has
assets to secure advances
No.1 contemplates emergency affects whole
banking community in financial crisis giving rise
to widespread confusion in public
No. 2 provides situation where BSP grants loan to
a bank with uncertain financial condition but not
insolvent
Limits
Shares Collateral
Overdraft
First Tranche
49
Endorsement
Repayment of Credits
Second Tranche
Other Requirements
Prohibitions
50
Computation of Reserves
Reserve Deficiencies
Interbank Settlement
51
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
Portfolio Ceilings
52
Official Deposits
Fiscal operations
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
53
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
XVII. Privileges
Tax Exemptions
Implementing Details
54
Mandate to Organize
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
55
Separation Benefits
Suspense Accounts
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
5.
Definitions
6.
7.
8.
Procedure
1. Within month of January of every odd year, all
banks shall forward to Treasurer a statement under
oath of all credits and deposits held by them of
persons (1) known to be dead or (2) who has not
made further deposits or withdrawal showing:
a. Name and last known residence
b. Amount and date of outstanding
unclaimed balance
c. Date when person died or made his last
deposit or withdrawal
d. Interest due on unclaimed balance
2. Copy of sword statement shall be posted n
conspicuous place in premises of the bank at least
60 days from date of filing
3. Immediately before filing, bank shall
communicate with person whose favor the
unclaimed balance stand of such
a. It is the duty of the Treasurer to inform the
SG the existence of unclaimed balances
4. When SG is informed of such, he shall commence
an action in the name of the People of the
Republic in the CFI (RTC) of the province or city
where the bank is located
a. It shall be joined as parties the bank and
all such creditors and depositors
9.
56
Penalties
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
57
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
58
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
3. Undertaking of entrustee
4. To hold in trust, sell or return for the
entruster the goods, documents or
instruments
May contain other terms not contrary to TRL or
laws
Rights of Entruster
59
60
Application
Penalty
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
5.
6.
7.
8.
61
Quorum
Per Diem
President
Vice President
Bank Examiners
Investigators
Claim Agents
62
VI. Assessment
Trust Fund
Assessment Rule
1. Assessment rate not exceed 1/5 of 1% per
annum
2. Semi-annual assessment rate of assessment
rate. Not less than P250
3. Assessment base amount of liability of bank for
deposits
4. Semi-assessment base for semi-annual period
average of assessment base in close of business
PDIC may:
o Refund to an insured bank any payment of
assessment that is excess of amount due
o Credit such expense toward payment of
assessment of next following period
Termination
63
Civil Penalities
64
practices
The BOD in such a case shall:
1. Submit report of examination to MB
Appointment
Effect of receivership
1. PDIC shall control, manage and administer affairs
of closed bank
2. Powers, functions and duties of directors, officers
and stockholders are suspended
3. Assets of closed bank is in custodia legis
4. Assets of closed bank shall not be subject to
attachment, execution or levy
Powers of PDIC in receivership
1. Bring suit to enforce liabilities of bank
2. Appoint persons to perform functions of PDIC as
receiver or liquidator
3. Suspend or terminate employees of closed bank
a. Payment of separation pay shall be made
after closed bank is in liquidation
4. Pay accrued utilities, rentals and salaries of closed
bank
5. Collect loans and other claims
6. Hire private counsels if necessary
7. Borrow loan when necessary to preserve assets of
closed bank to minimize loss
8. If stipulated interest on deposits is unusually high,
reduce interest rate
9. Exercise other powers inherent in receiver
Suits Filed by PDIC
Distribution of Assets
XIII. Receivership
65
Proof of Claims
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
Discharge
Withholding of Payment
Prescription
Recognition of Owner
Notice
66
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
XVII. Borrowings
XX. Miscellaneous
XXII. Fines
Signs
67
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
68
Reorganization
PDIC vs. CA
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
I. Concepts
69
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
Swindling/estafa
Smuggling
Violation of Electronic Commerce
High-jacking and destructive arson perpetrated by
terrorists
13. Fraudulent practise of Securities Regulation Code
14. Felonies of similar nature in other countries
5.
6.
7.
8.
9.
10.
11.
How is ML committed
1. Any person knowing any monetary instrument
involves proceeds of unlawful activity and
attempts or actually transacts such instrument
2. Any person knowing that monetary instrument
involves proceeds of unlawful activity and
performs or fails to perform any act as a result of
which he facilitates ML
3. Any person knowing monetary instrument is
required to be disclosed and filed with AMLC but
fails to do so
12.
13.
Prosecution of ML
70
Record Keeping
71
Second Issue
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
VI. Forfeiture
Civil Forfeiture
72
Authentication of Documents
Extradition
73
Powers of COC
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
74
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
75
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
76
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
77
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
78
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
79
Nature of Transfer
in the nature of True Sale
any transfer of NPAs not in the nature of True Sale
shall not qualify for tax exemptions and fee
privileges granted under the Act
The transfer by an FI of its NPAs to an SPV shall
be considered NOT A TRUE SALE if the FI:
1. invests in or acquires, D/I, the IUIs issued
by the SPV that acquired its NPAs
2. has d/i management of the transferee SPV
3. has any of its directors, officers,
employees on the board of the transferee
SPV
4. has obligated to repurchase or
substitute/exchange the NPA or any part
of the pool of NPAs at any time, except in
cases of a breach of representation or
warranty of the FI
5. Has RI with the transferee SPV
6. Possesses a claim of beneficial ownership
of more than 5% of the transferee SPV
Following shall NOT presumed to be a true sale if
the FI:
1. Purchases/invests in the IUIs of the SPV
that acquired its NPAs thru its trust
department including the trust department
of its Subsidiaries/Affiliates, Parent bank
and the trust department of the Parent
bank's subsidiaries/affiliates
2. Is made the beneficiary of a trust used as a
vehicle for purchasing and securitizing the
NPAs
3. Pays further expenses in relation to the
NPAs after said NPAs have been
sold/transferred to the transferee SPV
4. Extends any credit facility, guaranty, or
any similar financial transaction to the
transferee SPV
5. Extends any credit facility, guaranty or
any similar financial transaction to any
party for the purpose of investing in the
equity or IUIs of the SPV, or for acquiring
the NPAs from the SPV
6. Extends any CF, F, AST to any party for
the purpose of acquiring the NPAs from
the transferring FI
7. Acts as trustee (FIs trust dept) or if the
Trust dept of any of the FIs
subsidiaries/affiliates, parent bank or
parent banks, subsidiaries/affiliates acting
as trustee in the securitization of NPAs
that it has transferred to the SPV
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
Penalties
prescribed under Sec 25 of teh Act without
prejudice to other penalties that may be imposed
by the ARA of the transferring FI under applicable
laws
The SPV shall assume all Rights and Obligations
of the FI over the transferred NPA
N. Tax Exemptions and Fee Privileges
Transactions covered
1. the transfer of the NPL by the FI to an
SPV
2. transfer of the ROPOA by the fi to an SPV
3. Dacion en pago (DEP) of the NPL by the
borrower to the FI
4. DEP of the NPL by a 3rd party, on behalf
of the borrower, to the FI
5. transfer of NPL by the FI to an individual
6. transfer of the ROPOA by the FI to an
individual
7. transfer of the NPL by the SPV to a
3rd party
8. transfer of the ROPOA by the SPV to a
3rd party
9. DEP of the NP by the borrower to the
SPV
10. DEP of the NPL by a 3rd party on behalf
of the borrower to the SPV
11. transfer of the NPL by the individual to a
3rd party
12. transfer of ROPOA by the individual to a
3rd party
80
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.
81
R. Redemption Periods
provided by the following: Sec 47 of RA 897 or
the GBL of 2000 and Rules of Court
S. Books of Accounts and Records
Internal Record Keeping and Accounting Controls
1. An SPV must make and keep books,
records and accounts which reflect the
transactions and dispositions of its assets,
it minutes of meetings and other business
transactions
2. It shall advise and maintain a system of
internal accounting controls sufficient to
provide reasonable assurances that
a. The transactions and access are
pursuant to management
authorization
b. Financial statements are prepared
in conformity with the generally
accepted accounting principles
c. Recorded assets are compared
with existing assets at reasonable
intervals and differences
reconciled
External Auditor - shall be appointed by SPV
accredited by the Commission
Inspection of Books and Records those who has
a right to inspect:
1. Stockholder of SPV or Holder of an IUI at
a reasonable hour of business
2. Authorized representatives of the
Commission, BIR or the BSP any time
3. Failure to comply with this right will be a
ground for the suspension order on the
offering of the IUIs
T. Reports
Reports to be submitted by SPV to the
Commission
1. As Stock Corporation
General Information Sheet (GIS)
within 30 days from stockholder's
meeting date
AUTHORS: MANILA, ANTONIO CEASAR; BERNARDO, JANSEN; INTIG, JOY ESTELA; DE JESUS, TRACY ANN.
FROM SECTION 2S - SAN BEDA COLLEGE OF LAW, MENDIOLA: AY 2011-2012. REFERENCE: BANKING LAWS & JURISPRUDENCE BY DIZON.