PDIC v. Aquero, G.R. No, 118917, December 22, 1997 Case Digest

PDIC v. Aquero, G.R.
No, 118917, December 22, 1997

Gerardo, Desmund A.
FACTS:
Plaintiffs-appellants invested P10,000.00 in money market placements with Premiere
Financing Corporation (PFC) on September 22, 1983 and received promissory notes
and checks from PFC. John Francis Cotaoco, representing plaintiffs-appellants, visited
the PFC on September 22, 1983 to cash promissory notes and checks, but the PFC
referred him to the Regent Savings Bank (RSB). Instead of paying the promissory notes
and checks, the RSB, with Cotaoco's consent, issued the subject 13 certificates of time
deposit with Nos. 09648 to 09660, inclusive, each stating, among other things, that the
bearer thereof has deposited P10,000.00 with the RSB; that the certificate shall bear
14% interest per annum; that the certificate is insured up to P15,000.00 with the PDIC;
and that the maturity date thereof is November 3, 1915. Cotaoco went to the RSB to
cash the certificates on November 3, 1983. Jose M. Damian, executive vice president of
the RSB, requested a delay or extension of a few days from Cotaoco so that the RSB
could raise the necessary funds (Exhibit "D"). I concur, Cotaoco. Despite the extension,
the RSB did not pay the certificate's value. Instead, RSB recommended that Cotaoco
file a claim with the PDIC. With Resolution No. 788 (Exh. '2', Records, p. 159), the
Central Bank's Monetary Board suspended RSB operations on June 15, 1984. On
December 7, 1984, the RSB was liquidated by Resolution No. 1496 (Exh. '1) of the
Monetary Board. The RSB's records were secured and deposit liabilities were
determined. The following list details the RSB's assets and liabilities. However, the
certificates of time deposit of the plaintiff-appellants were not included on the list
because they were neither funded by the PFC nor recorded as RSB liabilities. On
September 4, 1984, the plaintiff-appellants filed claims with the PDIC for the amounts of
the certificates (Exhibits "C", "C-1", and "C-12"). Similar claims were submitted by
Sabina Yu, James Ngkaion, Elaine Ngkaion, and Jeffrey Ngkaion to the PDIC. Traders
Royal Bank Check No. 299255 dated September 22, 1983 for the amount of
P125,846.07 (Exh. "B") issued by PFC for the certificates was returned by the drawee
bank for having been drawn against insufficient funds, and PFC did not replace the
check, resulting in the cancellation of the certificates as RSB's liabilities or debts.
Therefore, on March 31, 1987, private respondents filed a collection action against the
PDIC, RSB, and Central Bank. The trial court declared the Central Bank in default for
failing to file an answer on September 14, 1987. The trial court ordered the defendants
to pay the plaintiffs jointly and severally the amount corresponding to the plaintiffs'
certificates of time deposit on May 29, 1989. PDIC and RSB both filed appeals.
ISSUE:
Whether or not PDIC can be held liable for value of the certificates of time deposit held
by the petitioners.
RULING:
No. Whenever an insured bank shall have been closed on account of insolvency,
payment of the insured deposits in such bank shall be made by the Corporation as soon
as possible. The term "deposit" refers to the unpaid balance of money or its equivalent
received by a bank in the ordinary course of business and for which it has given or is
obligated to give credit to a commercial, checking, savings, time, or thrift account or
which is evidence by passbook, check and/or certificate of deposit printed or issued in
accordance with Central Bank rules and regulations and other applicable laws, as well
as such other obligations of a bank which, consistent with these rules and regulations,
are deemed to These pieces of evidence demonstrate conclusively that the subject
CTDs were issued without RSB receiving payment. Therefore, no deposit, as defined by
Section 3 (f) of Act No. 3591, was created. Consequently, the PDIC cannot be held
liable for the value of the certificates of time deposits held by private respondents.

PDIC v. Aquero, G.R. No, 118917, December 22, 1997 Case Digest

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