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Assignment 1

Identify 1. Two-fold purpose of RA No. 3591, as amended, as, thus, stated in Section 1 thereof The Corporation shall, as a basic policy, (1) promote and safeguard the interests of the depositing public by providing insurance coverage on all insured deposits, and (2) helping maintain a sound and stable banking system. 2. Persons to compose the Board of Directors of PDIC a. Secretary of Finance b. Governor of the BSP c. President of the PDIC, who shall be appointed by the President of the Philippi

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69 views

Assignment 1

Identify 1. Two-fold purpose of RA No. 3591, as amended, as, thus, stated in Section 1 thereof The Corporation shall, as a basic policy, (1) promote and safeguard the interests of the depositing public by providing insurance coverage on all insured deposits, and (2) helping maintain a sound and stable banking system. 2. Persons to compose the Board of Directors of PDIC a. Secretary of Finance b. Governor of the BSP c. President of the PDIC, who shall be appointed by the President of the Philippi

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jamesbenedict.bantiling.21
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Identify

1. Two-fold purpose of RA No. 3591, as amended, as, thus, stated in Section 1 thereof
The Corporation shall, as a basic policy, (1) promote and safeguard the interests of the
depositing public by providing insurance coverage on all insured deposits, and (2)
helping maintain a sound and stable banking system.
2. Persons to compose the Board of Directors of PDIC
a. Secretary of Finance
b. Governor of the BSP
c. President of the PDIC, who shall be appointed by the President of the Philippines
d. Four (4) members from the private sector to be appointed by the President of the
Philippines
3. Authorities of a receiver (refer to pg 833 of your book)
4. Effects of liquidation of banks (refer to pg 834)
5. Types of insured deposits
All commercial banks, savings and mortgage banks, rural banks, private development
banks, cooperative banks, savings and loan associations, as well as branches and
agencies in the Philippines of foreign banks and all other corporations authorized to
perform banking functions in the Philippines, are insured with PDIC, except for such
exclusions:
1. Investments products such as bonds, securities, and trust accounts.
2. Deposit accounts which are unfunded, fictitious or fraudulent
3. Deposit products constituting or emanating from unsafe and unsound banking
practices
4. Deposits that are determined to be proceeds of an unlawful activity as defined under
the Anti-Money Laundering Law
Define
1. Bank and banking institution, these words are synonymous and interchangeable, these
are financial institutions whose business consists of taking deposits from the public, as
well as lending, these shall include banks, commercial banks, savings banks, mortgage
banks, rural banks, development banks, cooperative banks, stock savings, and loan
associations, and branches and agencies in the Philippines of foreign banks and all
other corporations authorized to perform banking functions in the Philippines.
2. Closed bank refers to a bank placed under by liquidation and deemed closed by the
order of the Monetary Board.
3. Deposit means the unpaid balance of money or its equivalent received by a bank in the
usual course of business and for which it has given or is obliged to give credit to a
commercial, checking, savings, time or thrift account. This is evidenced by a passbook,
certificate of deposit or any other evidence of deposit deemed authentic document or
record by the issuing bank.
4. Disputed claim refers to a claim or suit against the assets of a closed bank or for specific
performance, or breach of contract, or damages, of whatever nature or character,
whether for money or otherwise, liquidated or unliquidated, fixed or contingent, matured
or current, denied by the receiver.
5. Insured bank means any bank the deposits of which are insured in accordance with the
provisions of the RA 3591 or the PDIC Act.
6. Insured deposit under R.A. No. 9576 means the amount due to any bona fide depositor
for legitimate deposits in an insured bank net of any obligation of the depositor to the
insured bank as of date of closure, but not to exceed five hundred thousand pesos
(P500,000.00)
7. Liquidation refers to proceedings under Sections 12 to 16 of the PDIC Act, or simply
defined as a process of closing a bank due to insolvency and distributing its assets to
claimants.
8. Payout refers to the pay ment of insured deposits.
9. Receivership is established in the event of a bank closure, wherein a receiver, either
PDIC or any of its duly authorized agents, handles all the affairs of a failed bank
10. Close-now-pay-later-scheme- a scheme that is grounded on practical and legal
considerations to prevent unwanted dissipation of the bank’s assets and as a valid
exercise of police power to protect the depositors, creditors, stockholders, and the
general public.

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