Ateneo de Naga University

College of Business and Accountancy

Ateneo de Naga University
Naga City

REPUBLIC ACT NO. 3591

PHILIPPINE DEPOSIT INSURANCE CORPORATION

In partial fulfilment of the requirements in Regulatory Framework and Legal Issues in

Business (ACCL103)

Submitted by:

ACCL103 AC22 Students

Submitted to:

Atty. Dominick Adan Botor, CPA

April 2020
 PHILIPPINE DEPOSIT INSURANCE CORPORATION
Republic Act No. 3591, as amended

It is an act establishing the Philippine Deposit Insurance Corporation, defining its powers and
duties and for other purposes.

SECTION 1. Creation of the Philippine Deposit Insurance Corporation

The Philippine Deposit Insurance Corporation hereinafter referred to as the
“Corporation” shall insure the deposits of all banks which are entitled to the benefits of
insurance under this Act, and which shall have the powers hereinafter granted.
The Corporation shall promote and safeguard the interests of the depositing public by
providing insurance coverage on all insured deposits and helping maintain a sound and
stable banking system.

SECTION 2 Declaration as State Policy

It is to strengthen the mandatory deposit insurance coverage system to generate,

preserve, maintain faith and confidence in the country’s banking system, and protect it from
illegal schemes and machinations.
The Corporation, while being a government instrumentality with corporate powers,
shall enjoy fiscal and administrative autonomy.

STATE POLICY

SECTION 3 and 4 Board of Directors

A. Composition
The powers and functions of the Corporation shall be vested in and exercised by a Board
of Directors which shall be composed of seven (7) members as follows:

1. Secretary of Finance who shall be the ex officio Chairman of the Board without
compensation.

2. Governor of the Bangko Sentral ng Pilipinas who shall be the ex officio member of the
Board without compensation.

The Secretary of Finance and the Governor of the Bangko Sentral ng Pilipinas
may each designate an alternate, who shall be an official with a rank not lower than
assistant secretary or its equivalent with written authority from the Secretary of Finance
or the Governor of the Bangko Sentral ng Pilipinas to attend such meetings and to vote
on behalf of their respective principals.
 Whenever the Chairman of the Board is unable to attend a meeting of the Board,
or in the event of a vacancy in the office of the Secretary of Finance, and in the absence of
the Vice Chairman, the members of the Board shall designate from among themselves
who shall act as Chairman.

3. President of the Corporation

 One who is appointed by the President of the Philippines from a shortlist prepared
by the Governance Commission for Government-Owned or –Controlled
Corporations to serve on a full-time basis for a term of six (6) years
 Serve as the Chief Executive Officer and the Vice Chairman of its Board of
Directors

a) Compensation
His or her salary shall be fixed by the President of the Philippines upon the
recommendation of the Governance Commission for Government-Owned or
-Controlled Corporations, at a sum commensurate to the importance and
responsibility attached to the position.
The sum total of the salary, allowances, benefits and other emoluments of the
President of the Corporation shall be higher than the compensation package of the
next highest ranking executive of the Corporation.

b) Powers and Duties

The powers and duties of the President of the Corporation are:

1) To prepare the agenda for the meeting of the Board and to submit for the
consideration of the Board the policies and measures which he believes to be
necessary to carry out the purposes and provisions of this Act;

2) To execute and administer the policies and measures approved by the

Board;

3) To direct and supervise the operations and internal administration of the

Corporation in accordance with the policies established by the Board. The
President may delegate certain of his administrative responsibilities to other
officers of the Corporation, subject to the rules and regulations of the Board;

4) To represent the Corporation in all dealings with other offices, agencies and
instrumentalities of the government and with all other persons or entities,
public or private, whether domestic, foreign or international;

5) To authorize, with his signature, upon prior authority of the Board,

contracts entered into by the Corporation, notes and securities issued by the
Corporation, and the annual reports, balance sheets, profits and loss
statements, correspondence and other documents of the Corporation. The
signature of the President may be in facsimile wherever appropriate;
 6) To represent the Corporation, either personally or through counsel,
including private counsel, as may be authorized by the PDIC Board, in any
legal proceeding or action;

7) To delegate, with the prior approval of the Board of Directors, his power to
represent the Corporation, as provided in subsections (d) and (D of this
Section, to other officers of the Corporation; and

8) To exercise such other powers as may be vested in him by the Board.

The President shall be assisted by a Vice President and other officials whose
appointment and removal for cause shall be approved and whose salary shall be fixed
by the Board of Directors upon recommendation of the President of the Corporation.
During the absence or temporary incapacity of the President, or in case of
vacancy or permanent incapacity and pending appointment of a new President of the
Corporation by the President of the Philippines, the Board of Directors shall designate
the officer-in charge of the Corporation.

4. Four (4) members from the private sector

They are to be appointed by the President of the Philippines from a shortlist
prepared by the Governance Commission for Government-Owned or –Controlled
Corporations.

Appointment
No person shall be appointed as member of the Board unless he or she be of:
a) good moral character
b) unquestionable integrity and responsibility
c) known probity and patriotism,
d) recognized competence in economics, banking and finance, law, management
administration or insurance,
e) at least thirty-five (35) years of age

For the duration of their tenure or term of office and for a period of one (1) year
thereafter, the appointive members of the Board shall be disqualified from holding any
office, position or employment in any insured bank.

Reappointment
a) The appointive directors shall serve for a term of six (6) years unless sooner
removed for cause and shall be subject to only one (1) reappointment: Provided,
1) that of those first appointed, the first two (2) appointees shall serve for a
period of three (3) years
2) that the appointive director shall continue to hold office until the successor
is appointed
 b) An appointive director may be nominated by the Governance Commission for
Government Owned or -Controlled Corporations for reappointment by the
President only if one obtains a performance score of above average or its
equivalent or higher in the immediately preceding year of tenure as appointive
director based on the performance criteria for appointive directors of the
Corporation.

Appointment to any vacancy shall be only for the unexpired term of the predecessor.

Causes for Removal

The President of the Philippines may remove any appointive member of the
Board of Directors for any of the following reasons:
a) Physically or mentally incapacitated that he or she cannot properly discharge his
or her duties and responsibilities, and such incapacity has lasted for more than
six (6) months
b) Guilty of acts or operations which are of fraudulent or illegal character or which
are manifestly opposed to the aims and interests of the Corporation
c) No longer possesses the qualifications specified in this Act
d) Does not meet the standards for performance based on the evaluation by the
Governance Commission for Government-Owned or -Controlled Corporations

The presence of four (4) members shall constitute a quorum. All decisions of the
Board of Directors shall require the concurrence of at least four (4) members.

The compensation, per diems, allowances, incentives, and other benefits for board
members shall be determined by the Governance Commission for Government-Owned or
-Controlled Corporations.

B. Authority
The Board of Directors shall have the authority:

1. To approve and issue rules and regulations for banks and the depositing public as it
considers necessary for the effective discharge of its responsibilities;

2. To act as the policy-making body of the Corporation and constitute Board committees to
oversee the management, operations and administration of the Corporation;

3. To establish a human resource management system which shall govern the selection,
hiring, appointment, transfer, promotion, or dismissal of personnel. Such system shall
aim to establish professionalism and excellence at all levels of the Corporation in
accordance with sound principles of management;

4. To approve a compensation structure as an integral component of the Corporation's

human resource development program based on job evaluation studies and wage
surveys, and revise the same as it may deem necessary: Provided,
 a. That all positions in the Corporation shall be governed by a compensation
package, position classification system and qualification standards approved by
the Board based on a comprehensive job analysis and audit of actual duties and
responsibilities.
b. The compensation structure shall be comparable to that of other financial
institutions based on prevailing market standards, and shall provide for yearly
merit reviews or increases based on productivity.
c. The Corporation shall therefore be exempt from existing laws, rules and
regulations on compensation package, position classification and qualification
standards. It shall however endeavor to make its system conform as closely as
possible with the principles;

5. To appoint, establish the rank, fix the remuneration, benefits, including health care
services through a Health Maintenance Organization (HMO) and medical benefits, and
remove any officer or employee of the Corporation, for cause, subject to pertinent civil
service laws: Provided that,
a. The Board of Directors may delegate this authority to the President subject to
specific guidelines
b. In no case shall there be any diminution of existing salaries, benefits and other
emoluments;

6. To approve policy on local and foreign travel, and the corresponding expenses,
allowances and per diems, of officers, employees, agents of the Corporation, which shall
be comparable with the expenses, allowances and per diems of personnel of other
financial institutions based on prevailing market standards;

7. To adopt an annual budget for, and authorize such expenditures by the Corporation, as
are in the interest of the effective administration and operation of the Corporation;

8. To approve the target level of the Deposit Insurance Fund (DIF) and the methodology
for determining reserves for insurance and financial assistance losses;

9. To review the organizational set-up of the Corporation and adopt a new or revised
organizational structure as it may deem necessary for the Corporation to undertake its
mandate and functions;

10. To design, adopt and revise, as it may deem necessary, an early separation plan for
employees of the Corporation to ensure availability of a human resource pool qualified
and capable of implementing the Corporation's authorities under this Charter in a
manner responsive and attuned to market developments, and to provide incentives for
all those who shall be separated from the service. Notwithstanding any law to the
contrary, these incentives shall be in addition to all gratuities and benefits the employee
is entitled to under existing laws; and
 11. To promote and sponsor the local or foreign training or study of personnel in the fields
of banking, finance, management, information technology and law. Towards this end,
the Corporation is hereby authorized to defray the costs of such training or study. The
Board shall prescribe rules and regulations to govern the training or study programs of
the Corporation.

SECTION 5 Definition of Terms

 Asset- refers to movable, immovable, tangible, or intangible resources or properties over

which a bank has an established or equitable interest, including the proceeds of the sale
of its bank and branch licenses subject to the approval of the Bangko Sentral ng Pilipinas

 Asset distribution plan- plan of distribution of the assets of a closed bank to its creditors,
based on its estimated realizable value as of a certain cut-off date, prepared in accordance
with the Rules on Concurrence and Preference of Credits under the Civil Code or other
laws. It may be partial when it pertains to the distribution of a portion or some of the
assets of the closed bank, or final when it pertains to the distribution of all the assets of
the closed bank.

 Board of Directors - the Board of Directors of the Corporation

 Bank and banking institution - synonymous and interchangeable and 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

 Closed bank - a bank placed under liquidation by the Monetary Board.

 Creditor - any individual or entity with a valid claim against the assets of the closed bank

 Deposit - 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, evidenced by a passbook, certificate of deposit,
or other evidence of deposit issued in accordance with Bangko Sentral ng Pilipinas rules
and regulations and other applicable laws, together with such other obligations of a bank,
which, consistent with banking usage and practices, the Board of Directors shall
determine and prescribe by regulations to be deposit liabilities of the bank: Provided,

a) That any obligation of a bank which is payable at the office of the bank located
outside of the Philippines shall not be a deposit for any of the purposes of this Act
or included as part of the total deposits or of insured deposit
b) That subject to the approval of the Board of Directors, any insured bank which is
incorporated under the laws of the Philippines which maintains a branch outside
 the Philippines may elect to include for insurance its deposit obligations payable
only at such branch

The Corporation shall not pay deposit insurance for the following accounts or
transactions:

1) Investment products such as bonds and securities, trust accounts, and other
similar instruments;
2) Deposit accounts or transactions which are fictitious or fraudulent as
determined by the Corporation;
3) Deposit accounts or transactions constituting, and/ or emanating from,
unsafe and unsound banking practice/s, as determined by the Corporation,
in consultation with the Bangko Sentral ng Pilipinas, after due notice and
hearing, and publication of a directive to cease and desist issued by the
Corporation against such deposit accounts, transactions or practices; and
4) Deposits that are determined to be the proceeds of an unlawful activity

The actions of the Corporation taken shall be final and executory, and may only
be restrained or set aside by the Court of Appeals, upon appropriate petition for
certiorari on the ground that the action was taken in excess of jurisdiction or with such
grave abuse of discretion as to amount to a lack or excess of jurisdiction. The petition for
certiorari may only be filed within thirty (30) days from notice of denial of claim for
deposit insurance.

 Disputed claim - 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

 Insured bank - any bank the deposits of which are insured in accordance with the
provisions of this Act.

 Insured deposit - the amount due to any bonafide depositor for legitimate deposits in an
insured bank as of the date of closure but not to exceed Five hundred thousand pesos
(P500,000.00). Such amount shall be determined according to such regulations as the
Board of Directors may prescribe.

In determining such amount due to any depositor, there shall be added together
all deposits in the bank maintained in the same right and capacity for his or her benefit
either in his or her own name or in the name of others.

A joint account regardless of whether the conjunction "and," "or," "and/or" is

used, shall be insured separately from any individually-owned deposit account:
Provided that,
 1) If the account is held jointly by two or more natural persons, or by two or more
juridical persons or entities, the maximum insured deposit shall be divided into
as many equal shares as there are individuals, juridical persons or entities, unless
a different sharing is stipulated in the document of deposit.
2) If the account is held by a juridical person or entity jointly with one or more
natural persons, the maximum insured deposit shall be presumed to belong
entirely to such juridical person or entity.
3) The aggregate of the interest of each co-owner over several joint accounts,
whether owned by the same or different combinations of individuals, juridical
persons or entities, shall likewise be subject to the maximum insured deposit of
Five hundred thousand pesos (P500,000.00).
4) The provisions of any law to the contrary notwithstanding, no owner/holder of
any passbook, certificate of deposit or other evidence of deposit shall be
recognized as a depositor entitled to the rights provided in this Act unless the
passbook, certificate of deposit or other evidence of deposit is determined by the
Corporation to be an authentic document or record of the issuing bank.
5) In case of a condition that threatens the monetary and financial stability of the
banking system that may have systemic consequences, as defined in Section 22
hereof, as determined by the Monetary Board, the maximum deposit insurance
cover may be adjusted in such amount, for such a period, and/or for such
deposit products, as may be determined by a unanimous vote of the Board of
Directors in a meeting called for the purpose and chaired by the Secretary of
Finance, subject to the approval of the President of the Philippines.

 Liquidation- refers to the proceedings under Sections 12 to 16 of this Act.

 Liquidation court - the Regional Trial Court (RTC) of general jurisdiction where the
petition for assistance in the liquidation of a closed bank is filed and given due course

 Payout - the payment of insured deposits

 Petition for assistance in the liquidation of a closed bank - the petition filed by the
receiver with the RTC in accordance with Section 16 of this Act.

 Purchase of assets and assumption of liabilities -refers to a transaction where an

insured bank purchases any or all assets and assumes any or all liabilities of another
bank under resolution or liquidation, as provided in this Act

 Receiver - the Corporation or any of its duly authorized agents acting as receiver of a
closed bank
 Records - include all documents, titles, papers and electronic data of the closed bank,
including those pertaining to deposit accounts of and with the closed bank, its assets,
transactions and corporate affairs

 Residual assets - assets, in cash or in kind, to be turned over to the closed bank's
stockholders of record, in proportion to their interest in the closed bank as of date of
closure, after payment in full of liquidation costs, fees and expenses, and the valid
claims and surplus dividends to all the creditors

 Resolution - the actions undertaken by the Corporation under Section 11 of this Act to:
1) Protect depositors, creditors and the DIF;
2) Safeguard the continuity of essential banking services or maintain financial
stability; and
3) Prevent deterioration or dissipation of bank assets.

 Risk-based assessment system - a method for calculating an insured bank's assessment

on the probability that the DIF will incur a loss with respect to the bank, and the likely
amount of any such loss, based on its risk rating that takes into consideration the
following:
1) Quality and concentration of assets;
2) Categories and concentration of liabilities, both insured and uninsured,
contingent and noncontingent;
3) Capital position;
4) Liquidity position;
5) Management and governance; and
6) Other factors relevant to assessing such probability, as may be determined by the
Corporation.

 Statement of affairs - a report of financial condition of the closed bank at a given date,
showing:
1) estimated realizable value of assets;
2) classification of credits; and
3) estimated liabilities to be settled.

 Surplus dividends - the remaining assets of the closed bank after satisfaction in full of
all the liquidation costs, fees and expenses, and valid claims. The surplus dividends shall
be computed at the legal rate of interest from the date of takeover to cut-off date of the
distribution plan, and shall be paid, in cash or in kind, to creditors of the closed bank in
accordance with the Rules on Concurrence and Preference of Credits under the Civil
Code or other laws.

 Takeover - the act of physically taking possession and control of the premises, assets
and affairs of a closed bank for the purpose of liquidating the bank
  Transfer deposit - deposit in an insured bank made available to a depositor by the
Corporation as payment of insured deposit of such depositor in a closed bank and
assumed by another insured bank

 Trust funds - funds held by an insured bank in a fiduciary capacity and includes
without being limited to, funds held as trustee, executor, administrator, guardian or
agent

 Valid claim - the claim recognized by the receiver or allowed by the liquidation court

 Winding up period - the period provided in Section 16 of this Act

SECTION 6. Deposit Insurance Coverage

The deposit liabilities of any bank which is engaged in the business of receiving
deposits as herein defined on the effective date of this Act, or which thereafter may engage
in the business of receiving deposits, shall be insured with the Corporation.

Whenever a bank is determined by the Bangko Sentral ng Pilipinas to be capital

deficient, the Corporation may conduct an insurance risk evaluation on the bank to enable it
to assess the risks to the DIF. Such evaluation may include the determination of:

a. the fair market value of the assets and liabilities of a bank;

b. the risk classification of a bank; or
c. possible resolution modes under Section Il of this Act, subject to such terms and
conditions as the PDIC Board may prescribe.

SECTION 7. Assessment of member banks

A. Member-banks are assessed the annual flat rate of 1/5 of 1% of their total deposit liabilities.
The assessments are collected from member-banks semi-annually and form part of the
Deposit Insurance Fund (DIF). The DIF is managed through prudent investments, as
provided in the PDIC Charter. In addition, The board of Directors may establish a risk-
based assessment system and impose a risk-based assessment rate which shall not exceed
two-fifth (2/5) of one per centum (1%) per annum multiplied by the assessment base.
 In the event of bank closures, PDIC pays valid deposit accounts and deposit
insurance claims as soon as possible and within the set turnaround time to
provide immediate relief to depositors. Its quality management system on claims
settlement operations is ISO 9001:2008 certified and at par with international
standards.
B. On or before the 31stof July of each year, each insured bank shall file with the Corporation a
certified statement showing for the six months ending on the preceding June thirty the
amount of the assessment base and the amount of the semi-annual assessment due to the
 Corporation for the period ending on the following December thirty-one. Each insured bank
shall pay to the Corporation the amount of the semi-annual assessment it is required to
certify.
On or before the 31st day of January of each year, each insured bank shall file with the
Corporation a similar certified statement for the six months ending on the preceding
December thirty-one and shall pay to the Corporation the amount of the semi-annual
assessment for the period ending on the following June thirty which it is required to
certify.
C. Each bank which becomes an insured bank shall not be required to file any certified
statement or pay any assessment for the semi-annual period in which it becomes an insured
bank. On the expiration of such period, each such bank shall comply with the provisions of
subsection (b) of this section except that the semi-annual assessment base for its first
certified statement shall be the assessment base of the bank as of the close of business on the
preceding June thirty or December thirty-one, whichever is applicable. If such bank has
assumed the liabilities for deposits of another bank/s, it shall include such liabilities in its
assessment base. The first certified statement shall show as the amount of the first semi-
annual assessment due to the Corporation.
D. All assessment collections and income from operations after expenses and charges shall be
added to the DIF under Section 17 hereof. Such expenses and charges are:
1. The operating costs and the expenses of the Corporation for the calendar year;
2. Additions to reserve to provide for insurance and financial assistance losses, net
of recoverable amounts from applicable assets and collaterals, during the calendar
year; and
3. The net insurance and financial assistance losses sustained in said calendar year.
E. The Corporation may:
1. Refund to an insured bank and payment of assessment in excess of the amount
due to the Corporation; or
2. Credit such excess toward the payment of the assessment next becoming due
from such bank and upon succeeding assessments until the credit is exhausted.
F. Any insured bank which fails to file any certified statement required in connection with
determining the amount of any assessment payable by the bank to the Corporation may be
compelled to file such statement by mandatory injunction or other appropriate remedy in a
suit brought for such purpose by the Corporation against the bank and any officer/s thereof
in any court of the Philippines of competent jurisdiction in which such bank is located.
G. In a suit brought in any court of competent jurisdiction, the Corporation shall be entitled to
recover from any insured bank the amount of any unpaid assessment lawfully payable by
such insured bank to the Corporation. No action or proceeding shall be brought for recovery
of any assessment due to the Corporation in excess of the amount due to it, unless such
action or proceeding shall have been brought within five years after the right accrued for
which the claim is made.
H. Should any insured bank fail or refuse to pay any assessment required to be paid by such
bank under any provision of this Act, and should the bank not correct such failure or refusal
 within (30) thirty days after written notice has been given by the Corporation to an officer of
the bank citing this subsection, and stating that the bank has failed or refused to pay as
required by the law, the Corporation may, at its discretion file a case for collection before the
appropriate court without prejudice to the imposition of administrative sanctions allowed
under the provisions of this law on the bank officials responsible for the nonpayment of
assessment fees.
I. The Corporation shall have the authority to collect a special assessment from any member
bank and prescribe the terms and conditions thereof to maintain the target level of the DIF
set by the Board of Directors in accordance with this Act.

SECTION 8. Sanctions against Unsafe and Unsound Banking Practices

A. Whenever upon examination by the Corporation into the condition of any insured bank,
it shall be disclosed that an insured bank or its directors or agents have committed, are
committing or about to commit unsafe or unsound practices in conducting the business
of the bank, or have violated, are violating or about to violate any provisions of any law
or regulation. The BOD shall submit the report of the examination to the Monetary
Board to secure corrective action thereon within forty-five (45) days or else the BOD
shall, motu proprio, institute corrective action which it deems necessary. The BOD may
thereafter issue a cease-and-desist order, and require the bank or its directors or agents
concerned to correct the practices or violations within forty-five (45) days. However, if
the practice or violation is likely to seriously weaken the condition of the bank or
otherwise seriously prejudice the interests of its depositors and the Corporation, the
period to take corrective action shall not be more than fifteen (15) days.
B. The actions and proceedings provided in the preceding subsections may be undertaken
by the Corporation if, in its opinion, an insured bank or its directors or agents have
violated, are violating or about to violate any provision of this Act or any order, rule or
instruction issued by the Corporation or any written condition imposed by the
Corporation in connection with any transaction with or grant by the Corporation.
C. The Corporation may terminate the insured status of any bank that fails or refuses to
comply, within thirty (30) days from notice, with any cease-and-desist order issued by
the Corporation, or with any corrective action imposed by the Monetary Board, under
this section pertaining to a deposit-related unsafe and/or unsound banking practice.
Such termination shall be final and executory, and shall be effective upon publication of
the notice of termination in a newspaper of general circulation.

SECTION 9. Powers as a Corporate Body

The Corporation as a corporate body shall have the power:
1. - to adopt and use a corporate seal;
2. - to have succession until dissolved by an Act of Congress;
3. - to make contracts;
4. - to sue and be sued, complain and defend, in any court of law in the
Philippines. All suits of a civil nature to which the Corporation shall be
 a part shall be deemed to arise under the laws of the Philippines. No
attachment or execution shall be issued against the Corporation or its
property before final judgment in any suit, action, or proceeding in any
court. The Board of Directors shall designate an agent upon whom
service of process may be made in any province or city or jurisdiction
in which any insured bank is located;
5. - to appoint by its Board of Directors such officers and employees as
are not otherwise provided for in this Act to define their duties, fix
their compensation, require bonds of them and fix penalty thereof and
to dismiss such officers and employees for cause;
6. - to prescribe, by its Board of Directors, by-laws not inconsistent with
law, regulating the manner in which its general business may be
conducted, and the privileges granted to it by law may be exercised
and enjoyed;
7. - to exercise by its Board of Directors, or duly authorized officers or
agents, all powers specifically granted by the provisions of this Act,
and such incidental powers as shall be necessary to carry on the
powers so granted;
8. - to conduct examination of banks with prior approval of the Monetary
Board: Provided, That no examination can be conducted within twelve
(12) months from the last examination date;
9. - to act as receiver;
10. - to prescribe by its Board of Directors such rules and regulations as it
may deem necessary to carry out the provisions of this Act;
11. - The Corporation may establish its own provident fund which shall
consist of contributions made both by the Corporation and by its
officers and employees to a common fund for the payment of benefits
to such officers or employees or their heirs. The Board of Directors
shall prepare and issue rules and regulations as it may deem necessary
to make effective the establishment and operation of the fund;
12. - to compromise, condone or release, in whole or in part, any claim or
settled liability to the Corporation, regardless of the amount involved,
under such terms and conditions as may be imposed by the Board of
Directors to protect the interest of the Corporation, and to write off the
Corporation's receivables and assets which are no longer recoverable
or realizable.
13. - to determine qualified interested acquirers or investors for any of the
modes of resolution or liquidation of banks;
14. - to determine the appropriate resolution method and to implement
the same for a bank subject of resolution; and
15. - to determine the appropriate mode of liquidation of a closed bank
and to implement the same.
SECTION 10 Powers and Responsibilities and Prohibitions
A. The Board of Directors shall administer the affairs of the Corporation fairly and
impartially and without discrimination. The Corporation shall be entitled to the free use
of Philippine mails in the same manner as the other offices of the national government.

B. The PDIC works closely with the Bangko Sentral ng Pilipinas (BSP) to help maintain
stability in the banking system. PDIC is authorized to issue regulations to implement its
Charter, conduct bank examinations and investigations to assess financial safety and
soundness of banks and their adherence to banking and deposit insurance rules and
regulations, and extend financial assistance to eligible distressed banks.
Q: When may PDIC exercise its power to examine banks?
A: 1. PDIC may conduct an examination prior to the approval of the Board.
However, no examination can be conducted within 12 months from the last examination
date; and
2. PDIC in coordination with the Bangko Sentral, may conduct a special examination as
the Board of Directors, by an affirmative vote of a majority of all its members, if there is
a threatened or impending closure of a bank.
Note: Prior approval of the Monetary Board is not necessary when PDC conducts an investigation of
banks. "Investigation" and "examination" are distinct procedures under the charter of the PDIC and the
BSP.
The power of investigation covers all fact-finding investigations on fraud, irregularities and/or anomalies
committed in banks that are conducted by PDIC based on complaints from depositors or other
government agencies and/or final reports of examinations of banks conducted by the Bangko Sentral ng
Pilipinas and/or PDIC.

C. Each insured bank shall make reports of condition in such form and at such times as the
Board of Directors may require such reports to be published in such manner. Every such
bank which fails to make or publish any such report within such time, as the Board of
Directors may require, shall be subject to a penalty of not more than Ten thousand pesos
(P10,000.00) for each day of such failure recoverable by the Corporation for its use.
D. The Corporation shall have access to reports of examination made by, and reports of
condition made to the Bangko Sentral ng Pilipinas or its appropriate supervising
departments, and the Bangko Sentral ng Pilipinas shall also have access to reports of
examination made by, and reports of condition made to the Corporation: Provided, That
the provisions of any law to the contrary notwithstanding, the Corporation shall
likewise have access to reports, findings and any other information derived from any
special or general examination or inquiry conducted by the Bangko Sentral in respect to
bank fraud or serious irregularity in an insured bank: Provided, That the Corporation
shall use reports and findings under similar terms and conditions prescribed by
applicable laws on the Bangko Sentral.
E. Personnel of the Corporation are hereby prohibited from:
 (1) being an officer, director, consultant, employee or stockholder, directly or
indirectly, of any bank or banking institution except as otherwise provided in
this Act;
(2) receiving any gift or thing of value from any officer, director or employee
thereof,
(3) revealing in any manner, except as provided in this Act or under order of the
court, information relating to the condition or business of any such institution.
This prohibition shall not apply to the giving of information to the Board of
Directors, the President of the Corporation, Congress, any agency of government
authorized by law, or to any person authorized by either of them in writing to
receive such information.
F. The Corporation shall underwrite or advance all legal costs and expenses, including
legal fees and other expenses of external counsel, or provide legal assistance to,
directors, officers, employees or agents of the Corporation in connection with any civil,
criminal, administrative or any other action or proceeding, to which such director,
officer, employee or agent is made a party by reason of, or in connection with, the
exercise of authority or performance of functions and duties under this Act: Provided,
That such legal protection shall not apply to any civil, criminal, administrative or any
action or proceeding that may be initiated by the Corporation, in whatever capacity,
against such director, officer, employee or agent: Provided, further, That directors,
officers, employees or agents who shall resign, retire, transfer to another agency or be
separated from the service, shall continue to be provided with such legal protection in
connection with any act done or omitted to be done by them in good faith during their
tenure or employment with the Corporation: Provided, finally, That in the event of a
settlement or compromise, indemnification shall be provided only in connection with
such matters covered by the settlement as to which the Corporation is advised by
counsel that the persons to be indemnified did not commit any negligence or
misconduct.

G. The costs and expenses incurred in defending the aforementioned action, suit or
proceeding may be paid by the Corporation in advance of the final disposition of such
action, suit or proceeding upon receipt of an undertaking by or on behalf of the director,
officer, employee or agent to repay the amount advanced should it ultimately be
determined by the Board of Directors that he is not entitled to be indemnified as
provided in this subsection.
H. Unless the actions of the Corporation or any of its officers and employees are found to
be in willful violation of this Act, performed in bad faith, with malice and/or gross
negligence, the Corporation, its directors, officers, employees and agents are held free
and harmless to the fullest extent permitted by law from any liability, and they shall be
indemnified for any and all liabilities, losses, claims, demands, damages, deficiencies,
costs and expenses of whatsoever kind and nature that may arise in connection with the
 performance of their functions, without prejudice to any criminal liability under
existing laws.
I. Legal assistance shall include the grant or advance of reasonable legal fees as
determined by the Board of Directors to enable the concerned director, officer,
employee or agent to engage counsel of his choice, subject to approval by the Board of
Directors. Notwithstanding the provisions of this section and Section 3 of this Act,
members of the Board of Directors and personnel of the Corporation may become
directors and officers of any bank and banking institution and of any entity related to
such institution in connection with financial assistance extended by the Corporation to
such institution and when, in the opinion of the Board, it is appropriate to make such
designation to protect the interest of the Corporation.
 Borrowing from any bank or banking institution by examiners and other
personnel of the examination departments of the Corporation shall be prohibited
only with respect to the particular institution in which they are assigned, or are
conducting an examination.
 Borrowing by all full-time personnel of the Corporation from any bank or
banking institution shall be secured and disclosed to the Board, and shall be
subject to such further rules and regulations as the Board may prescribe.

SECTION 11 Bank Resolution

A. The Corporation, in coordination with the Bangko Sentral ng Pilipinas, may
commence the resolution of a bank under this section upon:
(1) Failure of prompt corrective action as declared by the Monetary Board; or
(2) Request by a bank to be placed under resolution. The Corporation shall inform
the bank of its eligibility for entry into resolution.
B. The Bangko Sentral ng Pilipinas shall inform the Corporation of the initiation of
prompt corrective action on any bank and shall be authorized to share with the
Corporation all information, agreements or documents, including any order of the
Monetary Board, in relation to the prompt corrective action. The Corporation shall
have the authority to inquire and monitor the status of banks under prompt
corrective action.
C. When there is a failure of prompt corrective action as declared by the Monetary
Board due to capital deficiency, the Corporation, its duly authorized officers or
employees, may examine, inquire or look into the deposit records of a bank.
 The Corporation, its duly authorized officers or employees are prohibited from
disclosing information obtained under this section to any person, government
official, bureau or office. Any act done pursuant to this section shall not be deemed
as a violation of Republic Act No. 1405, as amended, Republic Act No. 6426, as
amended, Republic Act No. 8791, and other similar laws protecting or safeguarding
the secrecy or confidentiality of bank deposits.
D. The stockholders, directors, officers or employees of the bank shall have the
following obligations:
 (1) Ensure bank compliance with the terms and conditions prescribed by the
Corporation for the resolution of the bank;
(2) Cause the engagement, with the consent of the Corporation, of an
independent appraiser or auditor for the purpose of determining the valuation of
the bank consistent with generally accepted valuation standards;
(3) Ensure prudent management and administration of the bank's assets,
liabilities and records; and
(4) Cooperate with the Corporation in the conduct or exercise of any or all of its
authorities under this Act and honor in good faith its commitment or
undertaking with the Corporation on the resolution of the bank.
E. Within a period of one hundred eighty (180) days from a bank's entry into resolution,
the Corporation, through the affirmative vote of at least five (5) members of the PDIC
Board, shall determine whether the bank may be resolved through the purchase of all
its assets and assumption of all its liabilities, or merger or consolidation with, or its
acquisition, by a qualified investor.
For this purpose, the Corporation may:
(1) Determine a resolution package for the bank;
(2) Identify and, with the approval of the Monetary Board, pre-qualify possible
acquirers or investors;
(3) Authorize pre-qualified acquirers or investors to conduct due diligence on
the bank, for purposes of determining the valuation of a bank through an
objective and thorough review and appraisal of its assets and liabilities, and
assessment of risks or events that may affect its valuation; and
(4) Conduct a bidding to determine the acquirer of the bank.

F. In determining the appropriate resolution method for a bank, the Corporation shall
consider the:
(1)Fair market value of the assets of the bank, its franchise, as well as the amount
of its liabilities;
(2) Availability of a qualified investor;
(3) Least cost to the DIF; and
(4) Interest of the depositing public.

G. The Corporation may appoint or hire persons or entities of recognized competence in

banking, finance, asset management or remedial management, as its agents, to perform
such powers and functions of the Corporation in the resolution of a bank, or assist in the
performance thereof.
H. The PDIC Board shall prescribe the guidelines or criteria for a bank to be placed under
resolution.
 I. Upon a determination by the Corporation that the bank may not be resolved, the
Monetary Board may act in accordance with Section 30 of Republic Act No. 7653 or the
New Central Bank Act.
J. Bank resolution involving the purchase of all assets and assumption of all liabilities of a
bank shall be exempt from the provisions of Act No. 3952, otherwise known as "The
Bulk Sales Law".
K. The provisions of this section are without prejudice to any action that the Monetary
Board may take under existing laws.

SECTION 12. Liquidation of a closed bank

Whenever a bank is ordered closed by the Monetary Board, the Corporation shall be
designated as receiver and it shall proceed with the takeover and liquidation of the closed
bank in accordance with this Act. For this purpose, banks closed by the Monetary Board shall
no longer be rehabilitated.

SECTION 13,15, and 16. Authorities of PDIC, as a Receiver of a bank under Liquidation

The receiver is authorized to adopt and implement, without the need of consent of the
stockholders, board of directors, creditors or depositors of the closed bank. Thus, the receiver is
authorized to do any or a combination of the following modes of liquidation;

1. Conventional Liquidation
A. Asset Management and Conversion
- The assets gathered by the receiver shall be evaluated and verified as to their
existence, ownership, condition, and other factors to determine their
realizable value. In the management, preservation and disposition of assets,
the receiver shall be guided by the cost benefit consideration, resources of the
closed bank and potential asset recovery.
- The conversion of assets of the closed bank shall be carried out in a fair and
transparent manner in accordance with the rules and procedures as may be
determined by the receiver.
- Authorities of the receiver in management and conversion of assets of the
closed bank.
1) Represent the closed bank before the Land Registration Authority,
the Bureau of Lands, the Register of Deeds, the Land
Transportation Office, the Assessor’s office, or other appropriate
offices of the local government units, the Securities and Exchange
commission or such similar government agencies or private
entities in;
 Verifying the authenticity of ownership documents.
  Registering the interest of the closed bank on a specific
property.
 Consolidating ownership over an asset of the closed bank.
 Securing certified true copies of the documents held by
the forgoing agencies or entities in relation to the assets of
the closed bank
 Securing appropriate certification from the forgoing
agencies or entities in relation to the assets of the closed
bank
 Performing other related activities;
2) Conduct a physical or ocular inspection of the properties, owned
by or mortgaged to the closed bank to determine their existence
and present condition
3) Determine the disposal price of the assets in accordance to the
generally accepted valuation principles, standards and practices
subject to such guidelines as determined by the receiver.
4) Dispose real or personal properties of the closed bank through
different modes like through bidding and negotiated sale. as may
be reasonably determined by the receiver based on the cost benefit
consideration and to allow efficient distribution of assets to
creditors.
5) Engage third parties to assist in the liquidation, manage, and/or
dispose the assets, handle cases filed against or by the closed
bank, subject to such guidelines as determined by the receiver.

- Notwithstanding, any provisions of the law to the contrary, the following

rules shall apply to the management and/or conversion by the receiver of the
assets of the closed bank;
1) Upon the notification of the closure of a bank. the Land Registration
Authority, the Bureau of Lands, the Register of Deeds, the Land
Transportation Office, the Assessor’s office, or other appropriate
offices of the local government units, the Securities and Exchange
commission or such similar government agencies shall not allow in
any transactions affecting the assets of the closed bank without the
consent of the receiver.
2) Upon issuance by the Monetary Board of the resolution ordering the
closure of a bank, any person or entity in custody or possession of
assets or records of the closed bank, including, but not limited to, the
closed bank’s deposit accounts, titles to real property, collaterals,
promissory notes, evidence of indebtedness or investments shall
immediately turn over custody of said assets and records to the
receiver. Such obligation shall cover evidences of deposit such as
 passbooks or certificates of deposit issued by the bank to its
depositors. Pending turnover, all persons or entities in custody or
possession of any asset or record of the closed bank shall hold the
said assets or records in trust for the receiver.
3) The persons or entities in custody or possession of such asset shall
not allow, authorize or cause the withdrawal, transfer, disposition,
removal, conversion, concealment, or other transaction involving or
relating to the subject asset, unless otherwise directed by the receiver.
- The receiver shall have the authority to invest funds received from the
conversion of the assets of the closed bank in government securities, other
government-guaranteed marketable securities or investment-grade debt
instruments.
- The proceeds of the sale of the bank and branch licenses shall be for the
benefit of the creditors of the closed bank which shall be distributed in
accordance with this Act and the Rules on Concurrence and Preference of
Credits under the Civil Code or other laws.
B. Petition for assistance in the liquidation of a closed bank
- A petition for assistance in the liquidation is a special proceeding for the
liquidation of a closed bank, and includes the declaration of the concomitant
right of its creditors and the order of payment of their valid claims in the
disposition of its assets
- The liquidation court shall have exclusive jurisdiction to adjudicate disputed
claims against the closed banks, assist in the enforcement of individual
liabilities of the stockholders, directors and officers and decide on all other
issues as may be material to implement the distribution plan adopted by the
Corporation for general application to all closed banks.
- The provisions of Republic Act No. 8799, otherwise known as ‘The Securities
Regulation Code’, and Supreme Court Administrative Matter No. 00-8-10-SC,
entitled, ‘The Rules of Procedure on Corporate Rehabilitation’, shall not be
applicable to the petition for assistance in the liquidation of the closed bank.
- The petition shall be filed in the RTC which has jurisdiction over the
principal office of the closed bank or the principal office of the receiver, at the
option of the latter.
- The petition shall be filed ex parte within a reasonable period from receipt of
the Monetary Board Resolution placing the bank under liquidation.
1) All persons or entities with claims against the assets of the closed bank
shall file their claims with the receiver within sixty (60) days from the
date of publication of the notice of closure. Claims filed outside the
foregoing prescribed period shall be disallowed.
2) Claims denied by the receiver shall be filed with the liquidation court
within sixty (60) days from receipt of the final notice of denial of claim.
 - A claim, whose validity has not yet been determined with finality at the time
of the submission of the final asset distribution plan, either by reason of a
pending suit or for whatever reason, shall be considered as contingent claim
and shall not be paid under the proposed final asset distribution plan.
- Upon finality of the order approving the final asset distribution plan, the
petition for assistance in the liquidation of a closed bank shall henceforth be,
for all intents and purposes, considered closed and terminated and the
receiver, its officers, employees or agents, are forever discharged from any
and all claims and/or liability arising from or in connection with the
liquidation of the closed bank.
- The receiver shall submit a final report on the implementation of the
approved final asset distribution plan to the Monetary Board and the SEC
after the expiration of the winding-up period provided in this Act.
- The Supreme Court shall promulgate the appropriate procedural rules to
implement this section.
C. Winding –Up
- The creditors shall have a period of six (6) months from the date of
publication of notice of the approval by the court of the final asset
distribution plan of the closed bank within which to claim payment of the
principal obligations and surplus dividends. During this six-month period,
the receiver shall hold as trustee the assets allocated in the final asset
distribution plan for said creditors.
- Failure by the creditor to comply with the documentary requirements within
the prescribed period and/or refusal to accept the asset as payment shall be
deemed as abandonment or waiver of his or her right to payment.
- The individual stockholders of record or their duly-authorized representative
or the court-appointed stockholders’ representative shall have a period of six
(6) months from publication of notice of the approval by the court of the final
asset distribution plan of the closed bank within which to claim the residual
assets. During this six-month period, the receiver shall hold as trustee the
assets allocated in the final asset distribution plan for said stockholders of
record.
- Failure by the individual stockholders of record or their duly-authorized
representative or the court-appointed stockholders’ representative to comply
with the documentary requirements within the prescribed period and/or
refusal to accept the residual assets in kind shall be deemed as abandonment
or waiver of right to receive the residual assets.
- After the lapse of the six-month period provided in paragraphs (q) and (r) of
this section, all assets which remain unclaimed by the creditors and/or
stockholders of record shall be turned over to the Bureau of Treasury.
 - The receiver shall continue to keep all the pertinent records of the closed
bank for a period of six (6) months from the date of publication of the
approval of the final asset distribution plan.
- After the lapse of this period, the receiver is authorized to dispose of the
same in accordance with the rules and regulations to be prescribed by the
receiver.

2. Purchase and Assumption of Liabilities

- The receiver shall have the authority to facilitate and implement the purchase
of the assets of the closed bank and the assumption of its liabilities by another
insured bank, without need for approval of the liquidation court. The
exercise of this authority shall be in accordance with the Rules on
Concurrence and Preference of Credits under the Civil Code or other laws,
subject to such terms and conditions as the Corporation may prescribe. The
disposition of the branch licenses and other bank licenses of the closed bank
shall be subject to the approval of the Bangko Sentral ng Pilipinas.
- Such action of the receiver to determine whether a bank may be the subject of
a purchase of assets and assumption of liabilities transaction shall be final
and executory, and may not be set aside by any court.

Additional Powers of the receivers;

1. Represent and act for and on behalf of the closed bank;

2. Gather and take charge of all the assets, records and affairs of the closed bank, and
administer the same for the benefit of its creditors;
3. Convert the assets of the closed bank to cash or other forms of liquid assets, as far as
practicable;
4. Bring suits to enforce liabilities of the directors, officers, employees, agents of the closed
bank and other entities related or connected to the closed bank or to collect, recover, and
preserve all assets, including assets over which the bank has equitable interest;
5. Appoint or hire persons or entities of recognized competence in banking, finance, asset
management or remedial management, as its deputies, assistants or agents, to perform
such powers and functions of the Corporation as receiver of the closed bank, or assist in
the performance thereof;
6. Appoint or hire persons or entities of recognized competence in forensic and fraud
investigations;
7. Pay accrued utilities, rentals and salaries of personnel of the closed bank for a period
not exceeding three (3) months, from available funds of the closed bank;
 8. Collect loans and other claims of the closed bank and for this purpose, modify,
compromise or restructure the terms and conditions of such loans or claims as may be
deemed advantageous to the interests of the creditors of the closed bank;
9. Hire or retain private counsel as may be necessary;
10. Borrow or obtain a loan, or mortgage, pledge or encumber any asset of the closed bank,
when necessary to preserve or prevent dissipation of the assets, or to redeem foreclosed
assets of the closed bank, or to minimize losses to its depositors and creditors;
11. If the stipulated interest rate on deposits is unusually high compared with prevailing
applicable interest rates, the Corporation as receiver, may exercise such powers which
may include a reduction of the interest rate to a reasonable rate: Provided, That any
modifications or reductions shall apply only to earned and unpaid interest;
12. Utilize available funds of the bank, including funds generated by the receiver from the
conversion of assets to pay for reasonable costs and expenses incurred for the
preservation of the assets, and liquidation of, the closed bank, without need for approval
of the liquidation court;
- For banks with insufficient funds, the Corporation is authorized to advance
the foregoing costs and expenses, and collect payment, as and when funds
become available.
13. Charge reasonable fees for the liquidation of the bank from the assets of the bank:
Provided, That payment of these fees, including any unpaid advances under the
immediately preceding paragraph, shall be subject to approval by the liquidation court;
14. Distribute the available assets of the closed bank, in cash or in kind, to its creditors in
accordance with the Rules on Concurrence and Preference of Credits under the Civil
Code or other laws;
15. Dispose records of the closed bank that are no longer needed in the liquidation in
accordance with guidelines set by the PDIC Board of Directors, notwithstanding the
laws on archival period and disposal of records; and
16. Exercise such other powers as are inherent and necessary for the effective discharge of
the duties of the Corporation as receiver.
- The Board of Directors shall adopt such policies and guidelines as may be
necessary for the performance of the above powers by personnel, deputies,
assistants and agents of the Corporation.

Right of Creditors and Claimants after payment of Liabilities and Claims against the closed
Bank

-After the payment of all liabilities and claims against the closed bank, the Corporation shall
pay surplus, if any, dividends at the legal rate of interest from date of takeover to date of
distribution to creditors and claimants of the closed bank in accordance with the Rules on
Concurrence and Preference of Credits under the Civil Code or other laws before distribution to
the shareholders of the closed bank.
No Liability

-The officers, employees, deputies, assistants and agents of the receiver shall have no liability
and shall not be subject to any action, claim or demand in connection with any act done or
omitted to be done by them in good faith in connection with the exercise of their powers and
functions under this Act and other applicable laws, or other actions duly approved by the court

Effects of Placement of a bank under Liquidation

1. On the corporate franchise or existence

- Upon placement by the Monetary Board of a bank under liquidation, it shall

continue as a body corporate until the termination of the winding-up period
under Section 16 of this Act. Such continuation as a body corporate shall only
be for the purpose of liquidating, settling and closing its affairs and for the
disposal, conveyance or distribution of its assets pursuant to this Act. The
receiver shall represent the closed bank in all cases by or against the closed
bank and prosecute and defend suits by or against it. In no case shall the
bank be reopened and permitted to resume banking business after being
placed under liquidation.

2. On the powers and functions of its directors, officers and stockholders

- The powers, voting rights, functions and duties, as well as the allowances,
remuneration and perquisites of the directors, officers, and stockholders of
such bank are terminated upon its closure. Accordingly, the directors,
officers, and stockholders shall be barred from interfering in any way with
the assets, records, and affairs of the bank.
- The receiver shall exercise all authorities as may be required to facilitate the
liquidation of the closed bank for the benefit of all its creditors.
3. On the assets
- Upon service of notice of closure as provided in Section 14 of this Act, all the
assets of the closed bank shall he deemed in custodia legis1 in the hands of the
receiver, and as such, these assets may not be subject to attachment,
garnishment, execution, levy or any other court processes. A’ judge, officer of
the court or any person who shall issue, order, process or cause the issuance
or implementation of the garnishment order, levy, attachment or execution,
shall be liable under Section 27 of this Act: Provided, however, That
collaterals securing the loans and advances granted by the Bangko Sentral ng
Pilipinas shall not be included in the assets of the closed bank for distribution
to other creditors: Provided, further, That the proceeds in excess of the

1
Latin for 'in the custody of the law'.
 amount secured shall be returned by the Bangko Sentral ng Pilipinas to the
receiver.
- Any preliminary attachment or garnishment on any of the assets of the closed
bank existing at the time of closure shall not give any preference to the
attaching or garnishing party. Upon motion of the receiver, the preliminary
attachment or garnishment shall be lifted and/or discharged.
4. On labor relations
- Notwithstanding the provisions of the Labor Code, the employer-employee
relationship between the closed bank and its employees shall be deemed
terminated upon service of the notice of closure of the bank in accordance
with this Act. Payment of separation pay or benefits provided for by law
shall be made from available assets of the bank in accordance with the Rules
on Concurrence and Preference of Credits under the Civil Code or other
laws.
5. Contractual obligations
- The receiver may cancel, terminate, rescind or repudiate any contract of the
closed bank that is not necessary for the orderly liquidation of the bank, or is
grossly disadvantageous to the closed bank, or for any ground provided by
law.
-
6. On interest payments
- The liability of a bank to pay interest on deposits and all other obligations as
of closure shall cease upon its closure by the Monetary Board without
prejudice to the first paragraph of Section 85 of Republic Act No. 7653 (the
New Central Bank Act): Provided, That the receiver shall have the authority,
without need for approval of the liquidation court, to assign, as payment to
secured creditors, the bank assets serving as collaterals to their respective
loans up to the extent of the outstanding obligations, including interest as of
date of closure of the hank, as validated by the receiver. The valuation of the
asset shall be based on the prevailing market value of the collaterals as
appraised by an independent appraiser on an ‘as is where is’ basis.
7. Liability for penalties and surcharges for late payment and nonpayment of taxes
- From the time of closure, the closed bank shall not be liable for the payment
of penalties and surcharges arising from the late payment or nonpayment of
real property tax, capital gains tax, transfer tax and similar charges.
8. Bank charges and fees on services
- The receiver may impose, on behalf of the closed bank, charges and fees for
services rendered after bank closure, such as, but not limited to, the execution
of pertinent deeds and certifications.
9. Actions pending for or against the closed bank
- Except for actions pending before the Supreme Court, actions pending for or
against the closed bank in any court or quasi-judicial body shall, upon
 motion of the receiver, be suspended for a period not exceeding one hundred
eighty (180) days and referred to mandatory mediation. Upon termination of
the mediation, the case shall be referred back to the court or quasi-judicial
body for further proceedings.
10. Final decisions against the closed bank
- The execution and enforcement of a final decision of a court other than the
liquidation court against the assets of a closed bank shall be stayed. The
prevailing party shall file the final decision as a claim with the liquidation
court and settled in accordance with the Rules on Concurrence and
Preference of Credits under the Civil Code or other laws.
11. Docket and other court fees
- Payment of docket and other court fees relating to all cases or actions filed by
the receiver with any judicial or quasi-judicial bodies shall be deferred until
the action is terminated with finality. Any such fees shall constitute as a first
Hen on any judgment in favor of the closed bank or in case of unfavorable
judgment, such fees shall be paid as liquidation costs and expenses during
the distribution of the assets of the closed bank.
12. All assets, records, and documents in the possession of the closed bank at the time of its
closure are presumed held by the bank in the concept of an owner.
13. The exercise of authority, functions, and duties by the receiver under this Act shall be
presumed to have been performed in the regular course of business.
14. Assets and documents of the closed bank shall retain their private nature even if
administered by the receiver. Matters relating to the exercise by the receiver of the
functions under this Act shall be subject to visitorial audit only by the Commission on
Audit.

SECTION 14 Notice of Closure and Takeover Activities

- Upon the designation of the Corporation as receiver of a closed bank, it shall

serve a notice of closure to the highest-ranking officer of the bank present in
the bank premises, or in the absence of such officer, post the notice of closure
in the bank premises or on its main entrance. The closure of the bank shall be
deemed effective upon the service of the notice of closure. Thereafter, the
receiver shall take over the bank and exercise the powers of the receiver as
provided in this Act.
- The receiver shall have authority to use reasonable force, including the
authority to force open the premises of the bank, and exercise such acts
necessary to take actual physical possession and custody of the bank and all
its assets, records, documents, and take charge of its affairs upon the service
of the notice of closure.
 - Directors, officers, employees or agents of a bank hold money and other
assets of the bank in trust or under administration or management by them
for the bank in their fiduciary capacity.
- Upon service of the notice of closure to the bank, all directors, officers,
employees or agents of the closed bank shall have the duty to immediately
account for, surrender and turn over to the receiver, and provide information
relative to, the assets, records, and affairs of the closed bank in their
possession, custody, administration or management.
- When the circumstances so warrant, the local government unit and law
enforcement agencies concerned shall, upon request, immediately provide
assistance to the receiver during the service of notice of closure and actual
takeover operations to ensure the orderly conduct thereof and the security
and safety of the personnel of the receiver and the employees of the closed
bank.

SECTION 17. Permanent Insurance Fund

The permanent insurance fund is three billion (3,000,000,000.00)

- The Deposit Insurance Fund shall be the capital account of the corporation
and shall principally consist of the following;
1. The Permanent Insurance Fund
2. Assessment and collections subjects to the charges of Section 6
3. Reserves for insurance and financial assistance losses and Retained
Earnings
 Provided, that the balance of these two shall be maintained at
reasonable level to ensure capital adequacy.

- Provided, further, that the corporation may within 2 years from the passage
of this act, and every 5 years thereafter, conduct a study on the need to
adjust the Permanent Insurance Fund, insurance cover, assessment rate, and
assessment base.

SECTION 18. Dividend Declaration

- Consistent with the policy of the State to generate, preserve, maintain faith
and confidence in the country’s banking system, the Corporation shall build
up and maintain the DIF at the target level set by the PDIC Board of
Directors. Such target level shall be subject to periodic review and may be
adjusted as necessary.
- The Corporation is exempt from Republic Act No. 7656; instead, the
Corporation shall remit dividends to the national government only if the
target DIF level for the applicable year has been reached. For purposes of
computing the amount of dividends to be declared and remitted to the
 national government, all assessment collections shall not be considered as
income. The dividend rate shall be at least fifty percent (50%) of the income
from other sources only.

SECTION 19. Payment of Insured Deposit

- Whenever an insured bank shall have been closed by the Monetary Board
pursuant to Section 30 of Republic Act No. 7653, or upon expiration or
revocation of a bank’s corporate term, payment of the insured deposits on
such closed bank shall be made by the Corporation as soon as possible either
(1) by cash or (2) by making available to each depositor a transferred deposit
in another insured bank in an amount equal to insured deposit of such
depositor: Provided, however, That the Corporation, in its discretion, may
require proof of claims to be filed before paying the insured deposits, and
that in any case where the Corporation is not satisfied as to the validity of a
claim for an insured deposit, it may require final determination of a court of
competent jurisdiction before paying such claim: Provided, further, That
failure to settle the claim, within six (6) months from the date of filing of
claim for insured deposit, where such failure was due to grave abuse of
discretion, gross negligence, bad faith, or malice, shall, upon conviction,
subject the directors, officers or employees of the Corporation responsible
for the delay, to imprisonment from six (6) months to one (1) year: Provided,
furthermore, That the period shall not apply if the validity of the claim
requires the resolution of issues of facts and or law by another office, body
or agency including the case mentioned in the first proviso or by the
Corporation together with such other office, body or agency.

SECTION 20. Upon payment of any depositor

- Corporation shall be subrogated to all rights of the depositor against the closed bank
including the following:
a. right to receive the same (1) dividends and (2) payments from the proceeds of the
asset
b. recoveries on the account of stockholders’ liability as would have been payable
to the depositor on a claim for the insured deposits if the depositor retain his or
her claim for any uninsured portion of his or her deposit

All payments by the corporation of insured deposits in closed banks partake of the nature of
public funds, and as such, must be considered a preferred credit in the order of preference
under Article 2244 (9) of the New Civil Code.

SECTION 21. Determination of insured deposits due the depositors of a closed bank
- shall commence upon its actual takeover of the closed bank
 Notice to the depositors:
- by whatever means deemed appropriate by the Board of Directors
- shall publish once a week for at least three (3) consecutive weeks in a newspaper of general
circulation, or in a newspaper circulated in the community where the closed bank or its
branches are located

When shall the corporation discharged from liability?

- Payment of an insured deposit to any person by the corporation
- Payment of transferred deposit to any person by the new bank or by an insured bank in
which a transferred deposit has been made available
 This also discharge such new bank or other insured bank to the same extent that
payment to such person would have discharged it from liability for the insured
deposit

Except as otherwise prescribed the Board of Directors, neither the corporation nor such
other insured bank shall be required to recognize as the owner of any portion of a deposit
evidenced by a passbook, certificate of deposit or other evidence of deposit determined by the
corporation to be an authentic document or record of the closed bank under a name other than
that of the claimant, any person whose name or interest as such owner is not disclosed on the
passbook, certificate of deposit or other evidence of deposit of such closed bank as part owner
of said deposit, if such recognition would increase the aggregate amount of the insured deposits
in such closed bank. (Sec 21c)

When shall the corporation may withhold payment?

If required to provide for the payment of:
- any liability of such depositor as a stockholder of the closed bank
- any liability of such depositor to the closed bank or its receiver
- not offset against a claim due from such bank, pending the determination and
payment of such liability by such depositor or any other liable therefor
When shall all rights of the depositor against the corporation be barred? (Sec 21)
If the depositor in the closed bank:
- fail to claim his insured deposits within two (2) years from actual takeover of the
closed bank by the receiver
- does not enforce his claim filed with the corporation within two (2) years after
the two-year period to file a claim
EXCEPTION: Unless otherwise waived by the corporation
However, all rights of the depositor against the closed bank and its shareholders or the
receivership estate to which the corporation may have become subrogated, shall thereupon
revert to the depositor. Thereafter, the corporation shall be discharged from any liability on
the insured deposit.

SECTION 22. Corporate Funds and Assets

Subject to guidelines and limits as approved by the Board of Directors:
Local Currencies
- Money denominated in the local currency shall be invested in obligations guaranteed as
to principal and interest by the Republic of the Philippines.

Foreign Currencies
Corporation may:
INVEST in:
- debt instruments denominated in foreign currencies
- debt instruments denominated in freely convertible foreign currencies with at
least an investment grade credit rating issued by:
 Supranationals
 Multilateral Agencies
 Foreign Governments
AUTHORIZED to:
- buy and/or sell debt instruments and foreign currencies from any government
securities eligible dealers, counterparties or brokers, accredited by the PDIC
Board.
- open securities custodianship and settlement accounts

Banking and Checking Accounts

- shall be kept with the Bangko Sentral ng Pilipinas, or with any other bank designated as
depository or fiscal agent of the Philippine government

Deposit Insurance Fund

- shall be preserved and maintained at all times

All tax obligations for a period of FIVE (5) YEARS

- shall be chargeable to the Tax Expenditure Fund (TEF) in the annual General
Appropriations Act
 On the 6th year and thereafter, the corporation shall be exempt from income tax,
final withholding tax, value-added tax on assessments collected from member
banks, and local taxes.

Assets of the corporation shall be exempt from attachment, garnishment or any other order or
process of any court, agency or any other administrative body. (Sec. 22d)

SECTION 22. Financial Assistance

The corporation is authorized to make loans to, or purchase the assets of, or assume liabilities
of, or make deposits in:
 (1) A bank in danger of closing, upon its acquisition by a qualified investor
(2) A qualified investor, upon its purchase of all assets and assumption of all liabilities of
a bank in danger of closing
(3) A surviving or consolidated institution that has merged or consolidated with a bank
in danger of closing
NOTE: Such acquisition, purchase of assets, assumption of liabilities, merger or consolidation is
essential to provide adequate banking service in the community or maintain financial stability
in the economy.

What shall consider prior to the exercise of the powers under this section?
- Corporation: determine that actual payoff and liquidation thereof will be more
expensive than the exercise of this power
- Monetary Board: determined that there are systemic consequences of a probable failure
or closure of an insured bank

How much financial assistance may the corporation grant to such insured bank?
- necessary to prevent its failure or closure and/or restore the insured bank to viable
operations
 Under such terms and conditions as may be deemed necessary by the Board of
Directors, subject to concurrence by the Monetary Board and without additional
cost to the DIF

Systemic Risk
- refers to the possibility that failure of one bank to settle net transactions with other
banks will trigger a chain reaction, depriving other banks of funds leading to a general
shutdown of normal clearing and settlement activity
- the likelihood of a sudden, unexpected collapse of confidence in a significant portion of
the banking or financial system with potentially large real economic effects

What kind of authority the corporation may or may not use under Section 22(e)?

MAY NOT USE:

- authority to purchase the voting or common stock of an insured bank

MAY USE:
- authority to enter into and enforce agreements that it determines to be necessary to
protect its financial interests
 Financial assistance may take the form of equity or quasi-equity of the insured
bank and the corporation shall dispose of such equity as soon as practicable.
SECTION 23. Authority to Borrow

Where is the corporation authorized to borrow?

 Bangko Sentral ng Pilipinas
 Such funds are from time to time required for insurance purposes and financial
assistance provided for in Section 22(e)
 Such loan shall be consistent with monetary policy and the rate of interest thereon shall
be fixed by the Monetary Board

If funds are not sufficient to provide for an emergency or urgent need to attain the purposes
of this act: (judgment of the Board of Directors)
- corporation is authorized to borrow money, obtain loans or arrange credit lines or other
credit accommodations from any bank; provided that:
 such loan shall be of short-term duration
 no prior monetary board opinion shall be required for the corporation and its
counterparties on individual drawdowns or borrowings within an approved
borrowing program where prior Monetary Board opinion has already been
obtained

SECTION 24. Issuance of Bonds, Debentures and Other Obligations

With the approval of the president of the Philippines, upon the recommendation of the
Department of Finance, the corporation is authorized to issue bonds, debentures, and other
obligations, both local or foreign, as may be necessary for purposes of:
a. providing liquidity for settlement of insured deposits in closed banks
b. to facilitate the implementation of bank resolution under section 11 of this act, as well as
for financial assistance as provided herein
 The Board of Directors shall determine the interest rates, maturity, and other requirements
of said obligations
 The corporation may provide for appropriate reserves for the redemption or retirement of
said obligation.

All notes, debenture, bonds, or such obligations issued by the corporation

- shall be exempt from taxation both as to principal and interest
- shall be fully guaranteed by the government of the Republic of the Philippines
- Such guarantee, which in no case shall exceed two times the DIF as of date of
the debt issuance, shall be expressed on the face thereof.
- may issue by the corporation without the approval of the President of the Philippines, as
long as these shall not be guaranteed by the national government
 The Board of Directors shall have the power to prescribe the terms and conditions, rules and
regulations for the issuance, reissuance, servicing, placement and redemption of the bonds
 herein authorized to be issued as well as the registration of such bonds at the request of the
holders thereof.

SECTION 25. Reports

When shall the corporation make a report?

The corporation shall annually make a report of its operations to the congress as
soon as practicable after the 1st day of January in each year.

Who shall audit financial transactions of the corporation?

- Financial transactions shall be audited by the Commission on Audit
- The audit shall be conducted at the place or places where accounts of the
corporation are normally kept.
EXCEPTION: as to matters relating to the function of the corporation as
receiver which shall be subject to visitorial audit only
- All such books, accounts, records, reports, files, papers, and property of
the corporation shall remain in possession and custody of the
corporation.

For Fiscal Year Ending On June 30

 Reports shall be made not later than January 15 following the close of such fiscal year
 On or before December 15 following such fiscal year, the Auditor General shall furnish
the corporation a short form report showing the financial position of the corporation at
the close of fiscal year
 The Report to the Congress shall:
(1) set forth the scope of the audit
(2) include the following statements:
a. Statement of assets and liabilities and surplus or deficit
b. Statement of surplus or deficit analysis
c. Statement of income and expenses
d. Statement of sources and application of funds
e. such comments and information of the financial operations and condition of
the Corporation, together with such recommendations
(3) show specifically any program, expenditure, or other financial
transactions or undertaking observed in the course of the audit that has
been carried on or made without authority of law.
 A copy of each report shall be furnished at the time submitted to the congress to the
following:
 President of the Philippines
 Governor of the Bangko Sentral ng Pilipinas
  The Corporation

SECTION 26. Sanctions and Penalties

Every insured bank shall display at each place of business maintained by it a sign or signs, and
shall include a statement in all its advertisements to the effect that its deposits are insured by
the Corporation
EXEMPTION: advertisements which do not relate to deposits or when it is impractical to
include such statement therein

If the bank remains in default in the payment of any assessment due to the corporation
No insured bank shall:
a. pay any dividend on its capital stock or interest on its capital notes or debentures
(if such interest is required to be paid only out of net profits)
b. distribute any of its capital assets
EXEMPTION: Default is due to a dispute between the insured bank and the
Corporation over the amount of such assessment and the bank will deposit
security satisfactory to the corporation for payment upon final determination of
the issue

If there are assumption of liabilities for any portion of the deposits made in an insured bank
Without prior written consent by the Corporation, no insured bank shall:
1. merge or consolidate with any bank or institution
2. assume liability to pay any deposits made in, or similar liabilities of, any bank or
institution
3. transfer assets to any bank or institution

Burglary, Defalcation, Losses arising from discharge of duties by, or particular acts of
defaults of its directors, officers, or employees, and other similar insurable losses
The Corporation may require any insured bank protection and indemnity. The Board of
Directors shall determine the bonding requirement as it refers to directors, officers and
employers as well as the form and amount of the bond.
If refuses to comply:
Corporation may contract for such protection and indemnity and add the
cost thereof to the assessment otherwise payable by such bank.

Any assessment payable by an insured bank under this Act

- subject to payment of interest
Interest is computed from the date such assessment became due and payable and at
the legal rate for loans as prescribed by law or appropriate authority
In case of willful failure or refusal to pay:
- there shall be added a penalty equivalent to twice the amount of interest
payable as computed herein for each day such violations continue
 EXEMPTION of penalty: Circumstances stated in the provisions of
subsection (b) of Section 26.

PENALTY: Imprisonment of not less than six (6) years but not more than twelve (12) years or a
fine of not less than Fifty thousand pesos (P50,000.00) but not more than Ten million pesos
(P10,000,000.00), or both, at the discretion of the court (Sec 26f)
OFFENSES:
(1) Any director, officer, employee or agent of a bank for:
(a) Any willful refusal to submit reports (as required by law, rules and
regulations);
(b) Any unjustified refusal to permit examination and audit of the deposit
records or the affairs of the institution;
(c) Any willful making of a false statement or entry in any bank report or
document required by the Corporation;
(d) Submission of false material information in relation to any financial assistance
extended to the bank;
(e) Splitting of deposits or creation of fictitious or fraudulent loans or deposit
accounts.

Splitting of deposits
- occurs when a deposit account is broken down into smaller accounts
in the name/s of persons or entities who have no beneficial ownership
on transferred deposits as it reaches the maximum deposit insurance
coverage.
- not allowed within 120 days from bank closure or declaration of
bank holiday
(f) Refusal to receive the notice of closure;
(g)Refusal to allow the Corporation to take over a closed bank or obstructing
such action of the Corporation;
(h) Refusal to turn over or destroying or tampering bank records;
(i) Fraudulent disposal, transfer or concealment of any asset, property or liability
of the closed bank;
(j) Violation of, or causing any person to violate, the exemption from
garnishment, levy, attachment or execution provided under this Act and the
New Central Bank Act;
(k) Any willful failure or refusal to comply with, or violation of any provision of
this Act, or commission of any other irregularities, and/or conducting business
in an unsafe or unsound manner as may be determined by the Board of Directors
in relation to The General Banking Law of 2000.
Notwithstanding any law to the contrary, the foregoing acts of directors, officers,
employees or agents of the bank shall be considered as additional grounds for
disqualification under the fit and proper rules of the Bangko Sentral ng Pilipinas.
 (l) Other acts inimical to the interest of the bank or the Corporation such as:
a. conflict of interest
b. disloyalty
c. authorizing related party transactions with terms detrimental to the
bank and its stakeholders
d. unauthorized disclosure of confidential information

(2) Any person for:

(a) Refusal to disclose information, records or data pertaining to the bank
accounts of a closed bank to the receiver;
(b) Refusal to turn over possession or custody of the asset and record of the
closed bank to the receiver, notwithstanding any agreement to the contrary;
(c) Refusal or delaying the:
(i) Verification of authenticity of the ownership documents;
(ii) Registration of interest of the closed bank on a specific property;
(iii) Consolidation of ownership over an asset of the closed bank;(iv) Act
of securing certified true copies of documents in relation to an asset of the closed
bank;
(v) Act of securing the appropriate certification from the agencies or
entities in relation to an asset of the closed bank;
(vi) Conduct of a physical or ocular inspection of the properties owned
by, or mortgaged to, the closed bank
(vii) Other related activities of the receiver
(d) Allowing the withdrawal from deposits or disposition of any asset of the
closed bank other than by the receiver;
(e) Willfully violating any provision of this Act;
(f) Conspiring or willfully participating in any of the offenses enumerated in
Paragraph 1 of this section 26.
(3) Any law enforcement officer or local government official who refuses or fails to assist
the receiver in the service of the notice of closure.

PENALTY: Administrative
The Board of Directors is hereby authorized to impose administrative fines for:
a. any act or omission enumerated in the preceding subsection
b. for violation of any order, instruction, rule or regulation issued by the
Corporation
AMOUNTS: not to exceed three times the amount of the damages or costs caused by
the transaction for each day that the violation subsists, taking into consideration the
nature and gravity of the violation or irregularity and the size of the bank.
PENALTY: Imprisonment of not less than ten (10) years but not more than twelve (12) years,
or a fine of not less than Five hundred thousand pesos (P500,000.00) but not more than Ten
million pesos (P 10,000,000.00), or both, at the discretion of the court. (Sec. 26h)
OFFENSES:
(1) Depositor - files a fictitious and/or fraudulent claim for deposit insurance
(2) Bank officer - certifies to the validity of the deposit liabilities which is
subsequently verified to be fictitious and/or fraudulent

PENALTY: Imprisonment of not less than twelve (12) years but not more than fourteen (14)
years
- OFFENSE: participates, or attempts to participate, in a scheme to defraud a bank

PENALTY: Imprisonment of not less than fifteen (15) years, but not more than seventeen (17)
years
- OFFENSE: Committed by a director or officer of the bank

PENALTY: Imprisonment of not less than eighteen (18) years but not more than twenty (20)
years
- OFFENSE: resulted in systemic consequences, as determined by the Bangko Sentral ng
Pilipinas

SECTION 27. Issuance of Restraining Order or Injunction against the Corporation

 General Rule: No court, except court of appeals, shall issue any temporary restraining
order, preliminary injunction, or preliminary mandatory injunction against the
Corporation for any action under this act.
- This prohibition shall apply in all cases, disputes or controversies instituted by a
private party, the insured bank, or any shareholder of the insured bank.
EXCEPTION: When the matter is of extreme urgency involving a constitutional issue,
Supreme Court may issue a restraining order or injunction.
(ex. grave injustice and irreparable injury will arise unless a temporary restraining order is
issued)
How to apply for the issuance of a restraining order or injunction?
- The party applying for this issuance shall file a bond in an amount to be fixed by the
Supreme Court, which bond shall accrue in favor of the Corporation if the court should
finally decide that the applicant was not entitled to the relief sought.

Any restraining order or injunction issued in violation of this section

- void and of no force and effect
- any judge who has issued the same shall suffer the penalty of suspension of at least
sixty (60) days without pay

SECTION 28. Exempting Clause

The Corporation shall be exempt from:
- Presidential Decree No. 985
- Presidential Decree No. 1597
- Republic Act No. 6758
- Joint Resolution No. 4 (2009)
- Other laws on salary standardization
- Presidential Decree No. 1177
- Executive Order No. 248
- Executive Order No. 298
- Provisions of Republic Act No. 10149 with regard to position
classification, qualification standards, and the compensation package of
the employees of the Corporation

PDIC shall be subject to all other policies under Republic Act No. 10149, including, but not
limited to:
 performance evaluation by the Governance Commission for Government-
Owned or -Controlled Corporations
 selection and nomination of appointive directors
 limitations on the creation of subsidiaries
 acquisition of affiliates except in the case of acquisition of shares in the grant
of financial assistance under this Act

SECTION 29. Transitory Provisions

a. The incumbent President of the Corporation and members of the Board of
Directors shall continue to exercise their respective duties and functions until
replaced by the President of the Philippines.
- Such new appointees shall be subject to the term of office provided under
Section 3 of this Act
b. Payment of surplus dividends under Section 13(c) of this Act
- shall be applicable to banks without a court-approved final asset
distribution plan at the time of the effectivity of this Act
c. The Preference indicated under Section 15 of this Act
- shall be likewise effective upon liquidation proceedings already
commenced and pending as of the effectivity of this Act, where no
distribution of assets has been made
d. The provisions in Section 10 of this Act
- legal assistance, protection and indemnification shall apply to all cases
pending before the effectivity of this Act

Replacement of the words “Central Bank” and the “Central Bank of the Philippines” (Sec. 30)
The words “Central Bank” and the “Central Bank of the Philippines” wherever they appear in
Republic Act No. 3591 is hereby replaced with Bangko Sentral and/or Bangko Sentral ng Pilipinas,
respectively.
SECTION 31. Separability Clause

If any provision or section of this act or the application thereof to any person or
circumstances is held invalid other provisions or sections of this Act, in the application of
such provision or section to other persons or circumstances, shall not be affected thereby

SECTION 32. Repealing Clause

All acts or parts of acts and executive orders, administrative orders, or parts thereof which are
inconsistent with the provisions of this Act

SECTION 33. Effective Clause

This act shall take effect Fifteen (15) days following the completion of its publication in the
Official Gazette or in two (2) newspapers of general circulation
References:

http://www.duhaime.org/LegalDictionary/C/CustodiaLegis.aspx

http://www.pdic.gov.ph/files/NEW%20PDIC%20CHARTER.pdf?
fbclid=IwAR29hLHE1rXdmHp_nXev5qmFrV0FGhptCFRC-HYWRkjx1ece29G7kTkQZGg

CONTRIBUTORS:

Del Rosario, Kurt

Espeso, Jillian Quennie

Espiritu, Maria Theresa

Fernandez, Jomer

BEADLE: Bonilla, Nina Koleen D.

SUBMITTED TO:

Atty. Dominick Adan Botor, CPA