PDIC Law

8.
0 Law on Other Business Transactions
8.1 PDIC Law (RA 3591, As Amended)
PDIC - government instrumentality created in 1963

attached agency of the Department of Finance
DOF Secretary
ex-officio
Board - 7 members BSP Governor
President of PDIC
appointees; need i-appoint ng President
Members (4)
regular - with consent of BSP monetary board and PDIC with Final Report Examination
examine
special - with threatened impending closure
pwede na PDIC lang
investigate fraud
may be subject to criminal
happens if may specific acts or omissions anomaly
and civil liability
irregularity
prompt corrective action versus unsound banking practices

PDIC will report to Monetary Board Ceased and Desist Order
except - motu proprio (Acts on its own) Fines
Terminate insured status existing: 180 days
Protect Depositors, Creditors, Deposit Insurance Fraud

Resolution Safeguard essential banking function
Maintain Financial Stability of the bank
Prevent dissipation/deterioration of banking assets
Functions: To act as
1. Deposit Insurer - promote and safeguard the interests of the depositing public by providing permanent and continuing
insurance coverage on all insured deposits
2. Co-regulator of banks - empowered to examine and investigate banks
3. Receiver and liquidator of closed banks - control, manage and administer the affairs of the bank
8.1.1 Insurable deposits
not to exceed P500,000
Deposits covered SaD Sa special FoNe Time

Savings deposit
Demand/Checking Account
Savings - Special
Foreign currency deposit
Negotiable order of withdrawal (NOW)
Time Deposit (Certificate)
Adjustment of maximum deposit insurance
Monetary Board has determined that there is a condition that threatens the monetary and financial stability of
the banking system
Approval by unanimous vote of the BOD of PDIC in a meetong called for the purpose and chaired by the DOF
Secretary
Approval of the President of the PH
possibility of failure of one bank to settle net transactions with other banks will trigger a chain reaction,
systemic risk depriving other banks of funds leading to a general shutdown of normal clearing and settlement activity
likelihood of a sudden, unexpected collapse of confidence in a significant portion of the banking or financial
system with potentially large real economic effects.
Deposit accounts not entitled to payment SHA IOU U
two or more persons
broken down and transferred to no beneficial ownership
deposit accounts more than P500,000 is
within 120 days after bankruptcy
splitting of deposit to avail the maximum deposit insurance coverage
head office of foreign bank in PH - deposit products or money placements
AMLA - proceeds of an unlawful activity
investment products - bonds, securities, trust accounts and other similar products
outside the PH - foreign branchers
unfunded, fictitious or fraudulent
unsafe and unsound banking paractice/s
8.1.2 Maximum liability
Per Bank: entitlement to deposit insurance is on a per bank basis
Per depositor, per capacity to rule:

all deposits in the bank maintained in the same right and capacity for his benefit either in his own name or in the
name of others shall be added together in determining the insured amount, and regardless of the type of account
Accounts “By”, “In Trust For (ITF)” or “For the Account of (FAO)” another person:
In a “By” account (Heeseung by Sunoo) – Heeseung is the depositor
In an “ITF” account (Heeseung ITF Sunoo) – Sunoo is the depositor
In a “FAO” account (Heeseung FAO Sunoo) – Sunoo is the depositor
Individual Accounts
All individual accounts of a depositor, where ownership is vested in him, shall be insured to a maximum of P500,000
Representing the same right, for your benefit whether or not in your name, counted yun sa’yo. Hiwalay lang if joint.
if marami kang joint account, iba-iba rin yung bilang pero still, once added, 500,000 pa rin is the maximum amount
Joint Accounts
“and”, “or”, “and/or” shall be insured separately from any individually owned depossit account
General rule: shall be shared equally

entire amount is presumed to belong
a different sharing is stipulated to the juridical person or entity
Exception:
joint with a juridical person (i.e. corporation)
“A depositor who maintains both individual and joint accounts may be insured up to a total of P1,000,000”
8.1.3 Requirements for Claims
Procedure for PDIC

commence the determination of insured deposits upon actual takeover of the closed bank
give notice to the depositors by whatever means deemed appropriate by the Board of Directors
publish notice once a week for at least three (3) consecutive weeks in a newspaper of general circulation or, when
approproate, in a newspaper circulated in the communities where the closed bank or its branches are located
Certificate of Deposit
No owner/holder of any negotiable certificate shall be recognized as depositor unless his name is registered as
owner/holder in the the books of the issuing bank
Claims
filed during the claims settlement operations period, as announce in the Notice of Depositors
Required to file claims

1. Deposit accounts of more than P100,000
2. Have outstanding balances with the closed bank, regardless of amount of deposits
no updated addresses in the bank records
3. Less than P100,000
not updated their addresses through Mailing Address Update Form (MAUF) issued by PDIC
4. Maintain their accounts under the name of business entities
regardless of type of account and account balance
5. Accounts not eligible for early payment
per advice of PDIC
Not required to file claims

no obligations with the closed bank
Deposit accounts of P100,000 and below updated addresses in the bank records
updated their addresses through (MAUF)
entitled to immediate/early payment of deposit insurance claim, to provide convenience to small depositors
payments are sent as postal money orders
Who should sign the insurance claim?

1. Depositor - 18 years old and above
2. Parent - below 18 years old
3. Agent - “By” accounts
4. Trustee - “In Trust for” ITF accounts
5. Each depositor - joint accounts “Or”, “And/Or” or “And”
Period for the depositor to file and enforce claim
file a claim - 2 years from actual turn over of the closed bank
enforce claim - 2 years after the 2-year period to file a claim
Proof of claim
may require proof of claims to be filed before paying the insured deposits, and that in any case
where the PDIC is not satisfied as to the validity of a claim, it may require final determination of a
court of competent jurisdiction before paying such claim
Effects of non-filing or non-enforcement of claim

All rights of the depositor against the PDIC with respect to the insured deposit shall be barred
All rights of the depositor against the closed bank and its shareholders or the receivership estate to which
PDIC may have become subrogated, shall thereupon revert to the depositor.
PDIC shall be discharged from any liability on the insured deposit
Modes of payment
by cash
as soon as possible either GCash/Paymaya
bank transfer to other insured bank
pwede rin na cheque or postal money order. Now, pwede na rin yung electronic money issuer (EMI)
Withholding of payment
PDIC may withhold payment of such portion of the insured deposit for the payment of any liability of such
depositor as a stockholder of the closed bank, or of any liability of such depositor to the closed bank or its
receiver, which is not offset against a claim due from such bank, pending determination and payment of such
liability by such depositor or any other liable therefor
Effect of payment magiging preferred creditor si PDIC doon sa liquidation ng bank
similar to taxes due to the National Government
shall be subrogated to all rights of the depositor against the closed bank to the extent of such payment
Period for the PDIC to settle claim

6 months from the date of filing of the claim
grave abuse of discretion

upon conviction,
Failure to settle due to gross negligence
imprisonment from 6 months to 1 year
bad faith or malice
except
if the validity of the claim requires the resolution of issues
of facts and/or law by another office, body or agency

PDIC Law

Uploaded by

Copyright:

Available Formats

PDIC Law

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

PDIC Law

Uploaded by

Copyright:

Available Formats

8.

0 Law on Other Business Transactions

8.1 PDIC Law (RA 3591, As Amended)

PDIC - government instrumentality created in 1963

prompt corrective action versus unsound banking practices

Protect Depositors, Creditors, Deposit Insurance Fraud

8.1.1 Insurable deposits

not to exceed P500,000

Deposits covered SaD Sa special FoNe Time

Adjustment of maximum deposit insurance

8.1.2 Maximum liability

Per Bank: entitlement to deposit insurance is on a per bank basis

Per depositor, per capacity to rule:

General rule: shall be shared equally

8.1.3 Requirements for Claims

Procedure for PDIC

Required to file claims

Not required to file claims

Who should sign the insurance claim?

Effects of non-filing or non-enforcement of claim

Period for the PDIC to settle claim

grave abuse of discretion

You might also like