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
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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
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NOW, THEREFORE, the
Court hereby RESOLVES thatchan
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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:red
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
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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
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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
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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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