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This web page features the full text of
ADMINISTRATIVE MATTER NO. 03-03-18-SC
[SEPTEMBER 01, 2003]
FIXING THE LIFETIME OF BONDS IN CIVIL ACTIONS OR PROCEEDINGS

 
Republic of the Philippines 
Supreme Court 
Manila 

ADMINISTRATIVE MATTER NO. 03-03-18-SC
[SEPTEMBER 01, 2003]

FIXING THE LIFETIME OF BONDS IN CIVIL ACTIONS OR PROCEEDINGS

WHEREAS, in civil actions or proceedings the filing of bonds may be required, inter alia, (a) before a writ (e.g., writ of attachment, injunction, or replevin) may be issued; (b) before a person (e.g., a guardian, receiver, executor, administrator, or trustee) may be allowed to perform his duties; or (c) before an execution of judgment pending appeal may be granted; chan robles virtual law library

WHEREAS, the purposes of the bond in such cases are for, among other things, the protection of the rights and interests of the parties which may be affected by the grant of the writ, by the action of the person authorized to perform certain duties, or by the execution of judgment pending appeal; chan robles virtual law library

WHEREAS, there have been instances that motions or claims filed against the bonds could not prosper for the reason that the bond had long ceased to be effective either because the premiums thereon had not been paid by the party who/which obtained the bonds, or the bonding company was no longer in business at the time;

WHEREAS, measures should be adopted to ensure that the liability on the bonds must be continuing until the final resolution or disposition of the action or proceedings or any incident therein in connection with which the bonds were issued. chan robles virtual law library

NOW, THEREFORE, the Court hereby RESOLVES that chan robles virtual law library

1. Unless and until the court directs otherwise, the lifetime or duration of the effectivity of any bond issued in civil actions or proceedings or in any incident therein shall be from its approval by the court until the action or proceedings is finally decided, resolved, or terminated. This condition must be incorporated in the contract or agreement between the party who procured the bond and the surety or bonding company and which contract or agreement shall be submitted to the court for approval. The same condition shall be deemed incorporated in the contract or agreement and shall bind the parties notwithstanding their failure to expressly state the same in the said contract or agreement.cralaw

2. The surety or bonding company shall notify the court concerned and the parties to the action or proceedings of any act, event, or circumstances that may affect its business or operations, such as corporate rehabilitation; amendment of its articles of incorporation that shortens corporate lifetime, bankruptcy; insolvency; or issuance of writs of execution, attachment, or garnishment against it.  The notice, which shall be given within ten (10) days from the occurrence of the act, event, or circumstance, shall have as attachments thereto, certified true copies or authenticated documents evidencing the same act, event, or circumstance. chan robles virtual law library

3. Upon the effectivity of this Resolution, no surety bond shall be approved by the court unless it complies with the conditions set forth herein. chan robles virtual law library

This Resolution shall take effect on the first day of September 2003, following its publication in a newspaper of general circulation not later than 15 August 2003.

Promulgated this 5th day of August 2003. chan robles virtual law library

Davide, Jr. C.J., Bellosillo, Puno, Vitug, Panganiban, Quisumbing, Ynares-Santiago, Sandoval-Gutirrez, Carpio, Austria-Martinez, Corona, Carpio-Morales, Azcuna and Tinga, JJ.
Callejo, Sr., J. on leave.

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