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PRESIDENTIAL DECREE NO. 1940
PRESIDENTIAL DECREE NO. 1940 -
FURTHER AMENDING REPUBLIC ACT NUMBERED THREE THOUSAND FIVE HUNDRED
NINETY-ONE, AS AMENDED, ENTITLED "AN ACT ESTABLISHING THE PHILIPPINE
DEPOSIT INSURANCE CORPORATION, DEFINING THE POWERS AND DUTIES AND FOR
OTHER PURPOSES"
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WHEREAS,
the Philippine Deposit Insurance Corporation (PDIC) is tasked not only
with the vital role of administering the deposit insurance scheme but
also in helping in the development of a stable and sound banking system;chanroblesvirtualawlibrary
WHEREAS, to enable the Corporation to cope with the present problems in
the domestic banking system, which may adversely affect the trust and
confidence in the banking system, there is an imperative and urgent
need to amend the present PDIC law, as amended;chanroblesvirtualawlibrary
WHEREAS, a stronger PDIC could be an effective partner of the Central
Bank in maintaining a sound and stable banking system.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of
the Philippines, by virtue of the powers in me vested by the
Constitution, do hereby order and decree the further amendment of
Republic Act No. 3591, as amended, as follows: chanroblesvirtualawlibrary
Section 1. Section 3 (f) of the same Act is hereby
amended, to read as follows:cralaw:red
"(f) The term "deposit" means the unpaid balance of
money or its equivalent received by a bank in the usual course of
business and for which it has given or is obliged to give credit to a
commercial, checking, savings, time or thrift account or which is
evidenced by passbook, check and/or certificate of deposit, printed or
issued in accordance with Central Bank rules and regulations and other
applicable laws, together with such 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, 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 the insured deposit: Provided, further, That,
subject to the approval of the Board of Directors, any insured bank
which incorporated under the laws of the Philippines which maintains a
branch outside the Philippines may elect to include for insurance its
deposit obligation payable only at such branch."
Section 2. Section 6 (a) and (b) of the same Act are
hereby amended, to read as follows:cralaw:red
"(a) The assessment rate shall be determined by the
Board of Directors: Provided, That the assessment rate shall not exceed
one twelfth of one per centum per annum. The semi-annual assessment for
each insured bank shall be in the amount of the product of one-half
(1/2) the assessment rate multiplied by the assessment base but in no
case shall it be less than the amount of two hundred (P250.00) pesos.
The assessment base shall be the amount of the liability of the bank
for deposits, according to the definition of the term "deposit" in and
pursuant to subsection (f) of Section 3 without any deduction for
indebtedness of depositors: Provided, further, That the bank—chanroblesvirtualawlibrary
(1) may deduct (i) from the deposit balance due to an
insured bank which is subject to an immediate withdrawal; and (ii) cash
items as determined by either of the following methods, at the option
of the bank: (aa) by multiplying by 2 the total of the cash items
forwarded for collection on the assessment base days (being the days on
which the average deposits are computed) and cash items held for
clearings at the close of business on said days, which are in the
process of collection and which the bank has paid in the regular course
of business or credited to deposit accounts; or (bb) by deducting the
total of cash items forwarded for collection on the assessment base
days and cash items held for clearings at the close of business on said
days, which are in the process of collection and which the bank has
paid in the regular course of business or credited to deposit accounts,
plus such uncollected items paid or credited on preceding days which
are in the process of collection: Provided, That the Board of Directors
may define the terms "cash items," "process of collection," and
"uncollected items" and shall fix the maximum period for which any such
item may be deducted; and
(2) may exclude from its assessment base (i) drafts
drawn by it on deposit accounts in other banks which are issued in the
regular course of business; and the amount of advices or authorizations
issued by it for cash letters received, directing that its deposit
account in the sending bank be charged with the amount thereof; and
(ii) cash funds which are received and held solely for the purpose of
securing a liability to the bank but not in an amount in excess of such
liability, and which are not subject to withdrawal by the obligor and
are carried in a special non-interest bearing account designated to
properly show purpose. chanroblesvirtualawlibrary
Each insured bank, as a condition to the right to make any such
deduction or exclusion in determining it assessment base, shall
maintain such records as will readily permit verification of the
correctness thereof. The semi-annual assessment base for one
semi-annual period shall be the average of the assessment base of the
bank as of the close of business on March thirty-one and June thirty
and the semiannual assessment base for the other semiannual period
shall be the average of the assessment base of the bank as of the close
of business on September thirty and December thirty-one: Provided, That
when any of said days is a non-business day or a legal holiday, either
National or Provincial, the preceding business day shall be used. The
certified statements required to be filed with the Corporation under
subsections (b) and (c) of this section shall be in such form and set
forth such supporting information as the Board of Directors shall
prescribe. The assessment payments required from insured banks under
subsections (b) and (c) of this section shall be made in such manner
and at such time or times as the Board of Directors shall prescribe,
provided the time or times so prescribed shall not be later than sixty
days after filing the certified statement setting forth the amount of
assessment. chanroblesvirtualawlibrary
"(b) On or before the 31st of 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 semiannual
assessment due to the Corporation for the period ending on the
following December thirty-one, determined in accordance with subsection
(a) of this section, which shall contain or be verified by a written
declaration that it is made under the penalties of perjury. Each
insured bank shall pay to the Corporation the amount of the semiannual
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 semiannual assessment for the period ending in the
following June thirty which it is required to certify." chanroblesvirtualawlibrary
Section 3. Section 6 of the same Act is hereby
amended so as to delete subsection (I) thereof.
Section 4. The same Act is hereby amended by adding
a new subsection in Section 8 thereof, to read as follows:cralaw:red
"Eleventh. — 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."
Section 5. Section 10 (b) and (d) of the same Act
are hereby amended, to read as follows:cralaw:red
"(b) For purposes of this Act an insured bank shall
be deemed to have been closed on account of insolvency when ordered
closed by the Monetary Board of the Central Bank of the Philippines
pursuant to Section 29 of R.A. 265, as amended." chanroblesvirtualawlibrary
"(d) The Corporation, upon the payment of any
depositor as provided for in subsection (c) of this section shall be
subrogated to all rights of the depositor against the closed bank to
the extent of such payment. Such subrogation shall include the right on
the part of the Corporation, after the allocation of the amount to
satisfy the uninsured portion of the depositors of the bank's
depositors, to receive the same dividends and payments from the
proceeds of the assets of such closed bank and recoveries on account of
stockholders' liability as would have been payable to the depositor on
a claim for the insured deposits, but such depositor shall retain his
claim for any uninsured portion of his deposit: Provided, That the
rights of the Corporation by virtue of abovementioned subrogation,
shall be preferred as against other unsecured creditors of the bank."
Section 6. Section 11 (d) of the same Act is hereby
amended by adding a proviso, to read as follows:cralaw:red
"(d) If, after the Corporation shall have given at
least three months notice to the depositor by mailing a copy thereof to
his last known address appearing on the records of the closed bank, any
depositor in the closed bank shall fail to claim his insured deposit
from the Corporation within eighteen months after the Monetary Board of
the Central Bank of the Philippines or the proper court shall have
ordered the conversion of the assets of such closed bank into money,
all rights of the depositor against the Corporation with respect to the
insured deposit shall be barred, and 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: Provided, however, That when practicable, the
Board of Directors may adopt other adequate means of notice to the
depositor." chanroblesvirtualawlibrary
Section 7. Section 13 of the same Act is hereby
amended, to read as follows:cralaw:red
"Sec. 13. The Corporation is authorized to borrow
from the Central Bank of the Philippines and the Central Bank is
authorized and directed to lend the Corporation on such terms as many
be agreed upon by the Corporation and the Central Bank, such funds as
in the judgment of the Board of Directors of the Corporation are from
time to time required for insurance purposes including those provided
for in section 12 (c) of this Act: Provided, That any such loan as may
be granted by the Central Bank shall be consistent with monetary
policy, and Provided, further that the rate of interest to be charged
in connection with any loan made pursuant to this Section shall not be
less than the current average rate on outstanding marketable and
non-marketable obligations of the Republic of the Philippines as of the
last day of the month preceding the making of such loan. Any such loans
shall be used by the Corporation solely in carrying out its function
with respect to such insurance."
Section 8. Section 16 of the same Act is hereby
amended by adding Subsections (f) and (g), to read as follows:cralaw:red
"(f) The Board of Directors is hereby authorized at
its discretion to impose upon insured banks, their directors and/or
officers, for any willful delay in the submission of reports as
required by law, rules and regulations; any refusal to permit
examination in the affairs of the institution; any willful making of a
false statement to the Corporation; any willful failure or refusal to
comply with, or violation of any provision of this Act, or any order,
instruction or regulations issued by the Corporation or any commission
of irregularities, and/or conducting business in an unsafe or unsound
manner as may be determined by the Board of Directors, a fine not
exceeding Five Hundred Pesos a day for each type of violation, the
imposition of which shall be final and executory until reversed,
modified or lifted by the Board of Directors.
(g) Whenever an insured bank willfully violates this
Act or any order, instruction, rule or regulation issued by the
Corporation, the officer or officers responsible for such violation
shall be punished by a fine of not more than twenty thousand pesos and
by imprisonment of not more than five years."
Section 9. This Decree shall take effect
immediately.
Done in the city of Manila,
this 27th day of June in the Year of Our Lord, Nineteen Hundred and
Eighty-Four.
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