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REPUBLIC ACTS
REPUBLIC ACT No. 9302 - AN ACT
AMENDING REPUBLIC ACT NUMBERED THREE THOUSAND FIVE HUNDRED NINETY-ONE,
AS AMENDED, OTHERWISE KNOWN AS THE "CHARTER
OF THE PHILIPPINE DEPOSIT INSURANCE CORPORATION" AND FOR OTHER
PURPOSES |
Section 1. Sec. 1 of Republic Act No. 3591, as amended, is hereby amended by adding a new paragraph to read as follows: "The
Corporation shall, as a basic policy, promote and safeguard the
interests of the depositing public by way of providing permanent and
continuing insurance coverage on all insured deposits." Sec. 2. Sec. 2 of the same Act is hereby further amended to read as follows: "SEC.
2. The powers and functions of the Corporation shall be vested in, and
exercised by a Board of Directors which shall be composed of five (5)
members as follows: "(a)
The Secretary of Finance who shall be ex-officio Chairman of the Board
without compensation. "The Secretary of Finance and the Governor of the Bangko Sentral may each designate a representative, whose position shall not be lower than an undersecretary or deputy governor respectively, 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, the President of the Corporation shall act as Chairman. "The presence of three (3) members shall constitute a quorum. All decisions of the Board of Directors shall require the concurrence of at least three (3) members. "The Secretary of Finance shall fix the rate of per diem for every Board meeting attended by the members of the Board of Directors from the private sector. The President of the Philippines may fix such emoluments that may be received by the Board of Directors comparable to the emoluments of members of the Board of Directors of other government financial institutions. "The Board of Directors shall have the authority: "1.
To prepare and issue rules and regulations as it considers necessary
for the effective discharge of its responsibilities; "4.
To appoint, establish the rank, fix the remuneration, approve local and
foreign training of, and remove any officer or employee of the
Corporation, for cause, subject to pertinent civil service laws:
Provided, That the Board of Directors may delegate this authority to
the President subject to specific guidelines; Sec. 3. Sec. 2-A of the same Act is hereby re-numbered as Sec. 3. Sec. 4. Sec. 3 of the same Act is hereby re-numbered as Sec. 4 and
subSec. (g) thereof is further amended to read as follows: "(g)
The term "insured deposit" means the amount due to any depositor for
deposits in an insured bank net of any obligation of the depositor to
the insured bank as of the date of closure, but not to exceed Two
hundred fifty thousand pesos (P250,000.00). Such net 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 benefit either in his 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; and (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: Provided, further, That the aggregate of the
interests 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 Two hundred fifty thousand pesos (P250,000.00): Provided,
furthermore, That the provisions of any law to the contrary
notwithstanding, no owner/holder of any negotiable certificate of
deposit shall be recognized as a depositor entitled to the rights
provided in this Act unless his name is registered as owner/holder
thereof in the books of the issuing bank." Sec. 5. Sec. 4 of the same Act is re-numbered as Sec. 5. Sec. 6. Sec. 6, subSec.s (a), (d) and (h) of the same Act are hereby
further amended, to read as follows: "SEC.
6. (a) The assessment rate shall be determined by the Board of
Directors: Provided, That the assessment rate shall not exceed
one-fifth (1/5) of one per centum (1%) 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 Five thousand pesos (P5,000.00).
The assessment base shall be the amount of the liability of the bank
for deposits as defined under subSec. (f) of Sec. 4 without any
deduction for indebtedness of depositors. "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 semi-annual assessment base
for the other semi-annual 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 legal holiday, either national or provincial, the
preceding business day shall be used. The certified statements required
to be filed with the Corporation under subSec.s (b) and (c) of this
Sec. shall be in such form and set forth such supporting information as
the Board of Directors shall prescribe. The assessment payments
required from the insured banks under subSec.s (b) and (c) of this Sec.
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 (60) days after filing the certified
statement setting forth the amount of assessment." "(d)
All assessment collections and income from operations after expenses
and charges shall be added to the Deposit Insurance Fund under Sec. 13
hereof. Such expenses and charges are: (1) the operating costs and
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." "(h)
The Corporation shall not terminate the insured status of any bank
which continues to operate or receive deposits. 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 thirty (30) days after written notice has
been given by the Corporation to an officer of the bank citing this
subSec., 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 non payment of
assessment fees." Sec. 7. Sec. 7, subSec. (a) of the same Act is hereby further amended to read as follows: "SEC.
7. (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 to which the insured bank is subject, the Board of
Directors shall submit the report of the examination to the Monetary
Board to secure corrective action thereon. If no such corrective action
is taken by the Monetary Board within forty-five (45) days from the
submission of the report, the Board of Directors shall, motu proprio,
institute corrective action which it deems necessary. The Board of
Directors 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 cause insolvency or substantial dissipation of
assets or earnings of the bank, or 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. The order may also
include the imposition of fines provided in Sec. 21 (f) hereof. The
Board of Directors shall duly inform the Monetary Board of the Bangko
Sentral ng Pilipinas of action it has taken under this subSec. with
respect to such practices or violations." Sec. 8. Sec. 8, paragraph Eighth of the same Act is hereby amended to read as follows: "Eighth
- 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: Provided, further, That, to
avoid overlapping of efforts, the examination shall maximize the
efficient use of relevant reports, information and findings of the
Bangko Sentral which it shall make available to the Corporation:
Provided, finally, That the Board of Directors shall, in close
coordination with the Monetary Board, prescribe such guidelines as may
be necessary to ensure that there are no duplications of functions." Sec. 9. Sec. 9 of the same Act is hereby further amended by adding a new subSec. (b-1) after subSec. (b), adding a new subSec. (d-1) after subSec. (d), amending subSec. (e), and adding new subSec.s (f), (g), and (h), to read as follows: "(b-1)
The investigators appointed by the Board of Directors shall have the
power on behalf of the Corporation to conduct investigations on frauds,
irregularities and anomalies committed in banks, based on reports of
examination conducted by the Corporation and Bangko Sentral ng
Pilipinas or complaints from depositors or from other government
agency. Each such investigator shall have the power to administer
oaths, and to examine and take and preserve the testimony of any person
relating to the subject of investigation." "(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; "(f) The Corporation shall underwrite or advance litigation 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 subSec.. "(h) 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 Sec. and Sec. 2, 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. Personnel of other departments, offices or units of the Corporation shall likewise be prohibited from borrowing from any bank or banking institution during the period of time that a transaction of such institution with the Corporation is being evaluated, processed or acted upon by such personnel: Provided, however, That the Board may, at its discretion, indicate the position levels or functional groups to which the prohibition is applicable. "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." Sec. 10. Sec. 9-A of the same Act is hereby numbered as Sec. 10, and further amended to read as follows: "SEC.
10. (a) The provisions of other laws, general or special, to the
contrary notwithstanding, whenever it shall be appropriate for the
Monetary Board of the Bangko Sentral ng Pilipinas to appoint a receiver
of any banking institution pursuant to existing laws, the Monetary
Board shall give prior notice and appoint the Corporation as receiver. "(1)
bring suits to enforce liabilities to or recoveries of the closed bank; Sec. 11. A new Sec. is hereby inserted as Sec. 11 of the same Act to read as follows: "SEC.
11 In all cases or actions filed by the Corporation as receiver for the
recovery of, or involving any asset of the closed bank, payment of all
docket and other court fees shall be deferred until the action is
terminated with finality. Any such fees shall constitute as a first
lien on any judgment in favor of the closed bank or in case of
unfavorable judgment, such fees shall be paid as administrative
expenses during the distribution of the assets of the closed bank." Sec. 12. Sec. 9-B of the same Act is hereby renumbered as Sec. 12 and further amended to read as follows: "SEC
12. Before any distribution of the assets of the closed bank in
accordance with the preferences established by law, the Corporation
shall periodically charge against said assets reasonable receivership
expenses and subject to approval by the proper court, reasonable
liquidation expenses, it has incurred as part of the cost of
receivership/liquidation proceedings and collect payment therefore from
available assets. Sec. 13. Sec. 9-C of the same Act is hereby repealed. Sec. 14. Sec. 10 of the same Act is re-numbered as Sec. 13 and further
amended to read as follows: "SEC.
13. To carry out the purposes of this Act, the permanent insurance fund
shall be Three billion pesos (P3,000,000,000.00). "The
Deposit Insurance Fund shall be the capital account of the Corporation
and shall principally consist of the following: (i) the Permanent
Insurance Fund; (ii) assessment collections, subject to the charges
enumerated in Sec. 6 (d); (iii) reserves for insurance and financial
assistance losses; and (iv) retained earnings: Provided: That the
reserves for insurance and financial assistance losses and retained
earnings shall be maintained at a reasonable level to ensure capital
adequacy: Provided, further, That the Corporation may, within two (2)
years from the passage of this Act, and every five (5) years
thereafter, conduct a study on the need to adjust the amount of the
Permanent Insurance Fund, insurance cover, assessment rate and
assessment base, and thereafter make the necessary recommendation to
Congress. For this purpose, the Corporation may hire the services of
actuarial consultants to determine, among others, the affordability of
assessment rates, analysis and evaluation of insurance risk, and
advisability of imposing varying assessment rates or insurance cover of
different bank categories." Sec. 15. Sec. 10 (b) of the same Act is hereby repealed. Sec. 16. Sec. 10 (c) of the same Act is hereby renumbered as Sec. 14
and further amended to read as follows: "SEC.
14. Whenever an insured bank shall have been closed by the Monetary
Board pursuant to Sec. 30 of R.A. 7653, 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 viability 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 Corporation together with
such other office, body or agency." Sec. 17. Sec. 10 (d) of the same Act is hereby renumbered as Sec. 15. Sec. 18. Sec. 11 of the same Act is hereby re-numbered as Sec. 16 and
further amended by inserting a new paragraph as Sec. 16 (a), and the
existing paragraphs are hereby re-numbered accordingly: "SEC.
16 (a) The Corporation shall commence the determination of insured
deposits due the depositors of a closed bank upon its actual takeover
of the closed bank. The Corporation shall give notice to the depositors
of the closed bank of the insured deposits due them by whatever means
deemed appropriate by the Board of Directors: Provided, That the
Corporation shall publish the notice once a week for at least three (3)
consecutive weeks in a newspaper of general circulation or, when
appropriate, in a newspaper circulated in the community or communities
where the closed bank or its branches are located. "(b)
Payment of an insured deposit to any person by the Corporation shall
discharge the Corporation, and payment of a transferred deposit to any
person by the new bank or by an insured bank in which a transferred
deposit has been made available shall discharge the Corporation and
such new bank or other insured bank, to the same extent that payment to
such person by the closed bank would have discharged it from liability
for the insured deposit. "(c)
When the Corporation has determined that an insured bank is in danger
of closing, in order to prevent such closing, the Corporation, in the
discretion of its Board of Directors, is authorized to make loans to,
or purchase the assets of, or assume liabilities of, or make deposits
in, such insured bank, upon such terms and condition as the Board of
Directors may prescribe, when in the opinion of the Board of Directors,
the continued operation of such bank is essential to provide adequate
banking service in the community or maintain financial stability in the
economy. Sec. 20. Sec. 13 of the same Act is re-numbered as Sec. 18, and is hereby amended to read as follows: "SEC.
18. The Corporation is authorized to borrow from the Bangko Sentral ng
Pilipinas and the Bangko Sentral is authorized to lend the Corporation
on such terms as may be agreed upon by the Corporation and the Bangko
Sentral, such funds as in the judgment of the Board of Directors of the
Corporation are from time to time required for insurance purposes and
financial assistance provided for in Sec. 17(c) of this Act: Provided,
That any such loan as may be granted by the Bangko Sentral shall be
consistent with monetary policy: Provided, further, That the rate of
interest thereon shall be fixed by the Monetary Board but shall not
exceed the treasury bill rate. Sec. 21. Sec. 14 of the same Act is re-numbered as Sec. 19 and is hereby amended to read as follows: "SEC.
19. With the approval of the President of the Philippines, the
Corporation is authorized to issue bonds, debentures, and other
obligations as may be necessary for purposes of settlement of insured
deposits in closed banks as well as for financial assistance as
provided herein: Provided, That the Board of Directors shall determine
the interest rates, maturity and other requirements of said
obligations: Provided, further, That the Corporation shall provide for
appropriate reserves for the redemption or retirement of said
obligation. Sec. 22. Sec. 15 of the same Act is re-numbered as Sec. 20 and is hereby amended to read as follows: "SEC.
20. (a) 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. "(b)
The financial transactions of the Corporation shall be audited by the
Commission on Audit in accordance with the principles and procedures
applicable to commercial corporate transactions and under such rules
and regulations as may be prescribed by the Commission on Audit. The
audit shall be conducted at the place or places where accounts of the
Corporation are normally kept. Except as to matters relating to the
function of the Corporation as receiver which shall be subject to
visitorial audit only, the representatives of the Commission on Audit
shall have access to all books, accounts, records, reports, files and
all other papers, things, or property belonging to or in use by the
Corporation pertaining to its financial transactions and necessary to
facilitate the audit, and they shall be afforded full facilities for
verifying transactions with the balances or securities held by
depositories, fiscal agents, and custodians. All such books, accounts,
records, reports, files, papers, and property of the Corporation shall
remain in possession and custody of the Corporation." Sec. 23. Sec. 16 of the same Act is re-numbered as Sec. 21, and paragraphs (a), (b), (f) and (g) are hereby further amended to read as follows: "SEC.
21. (a) 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: Provided, That the Board of Directors may exempt from this
requirement advertisements which do not relate to deposits or when it
is impractical to include such statement therein. The Board of
Directors shall prescribe by regulations the forms of such signs and
the manner of use. "1)
for any willful refusal to submit reports as required by law, rules and
regulations; Sec. 24. A new Sec. 22 is hereby inserted, to read as follows: "SEC.
22. No court, except the Court of Appeals, shall issue any temporary
restraining order, preliminary injunction or preliminary mandatory
injunction against the Corporation for any action under this Act. SEC. 23 The Corporation may be reorganized by the Board of Directors by adopting if it so desires, an entirely new staffing pattern or organizational structure to suit the operations of the Corporation under this Act. No preferential or priority right shall be given to or enjoyed by any personnel for appointment to any position in the new staffing pattern nor shall any personnel be considered as having prior or vested rights with respect to retention in the Corporation or in any other position which may be created in the new staffing pattern, even if he should be the incumbent of a similar position prior to reorganization. The reorganization shall be completed within six (6) months after the effectivity of this Act. Personnel who are not retained are deemed separated from the service. SEC. 24. The Board of Directors is hereby authorized to provide separation incentives, and all those who shall retire or be separated from the service on account of reorganization under the preceding Sec. shall be entitled to such incentives which shall be in addition to all gratuities and benefits to which they may be entitled under existing laws. Sec. 25. The words "Central Bank" and the "Central Bank of the Philippines" wherever they appear in Republic Act No. 3591, as amended, is hereby replaced with Bangko Sentral and/or Bangko Sentral ng Pilipinas, respectively. Sec. 26. Separability Clause. - If any provision or Sec. of this Act or the application thereof to any person or circumstances is held invalid, the other provisions or Sec.s of this Act, in the application of such provision or Sec. to other persons or circumstances, shall not be affected thereby. Sec. 27. 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 are hereby repealed. Sec. 28. Effectivity 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. Approved: July 27
2004 |
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