Good morning, everyone. So now, we’ll move on to the next topic which is the Republic No.

3591 or the
PDIC

So, what is the PDIC. PDIC is a government instrumentality created way back in 1963 para magprovide ka
protection sa mga depositors kang bank in case of its closure. The PDIC is also an attached agency of the
Bangko Sentral ng Pilipinas.

Co-Regulator of Banks. Since it was mentioned nga PDIC is an attached agency of the BSP, they have
also have the responsibility to regulate banks. So imaw ka BSP, naga examine man PDIC ka mga banks
kag sara man sanda sa mga gatugro kang rules and regulations for compliance bank para protection kang
deposit insurance system.

Liquidation of Closed Banks. Ang PDIC is the statutory nga receiver kag liquidator kang closed banks. So
upon order kang Monetary Board, PDIC takes overs closed banks tapos sanda ang naga administer ag
naga dispose ka assets kang bank para sa mga creditors.

PDIC only covers the risk of bank closure by the Monetary Board. Thus, bnk losses due to theft, fire,
closure, strike or existence of public disorder, revolution, crime or war are not covered by PDIC

a. Investment products such as bonds and securities, trust accounts, and other similar instruments which
do not fall under the definition of a Deposit.

The following features may be considered as grounds for determining that a product is an investment:

1. No debtor-creditor relationship exists between the bank and the client;

2. Relationship between the bank and the client is either that of a trustee-trustor or an agent-
principal;
3. Principal amount is not protected;
4. Amount deposited is not withdrawable on demand; and/or
5. Other analogous features.
b. Deposit accounts or transactions which are unfunded, or are fictitious or fraudulent.
1. A deposit account or transaction shall be deemed unfunded when no Money or Equivalent (of
money) is Received by a Bank for such account or transaction.
2. A deposit account or transaction shall be deemed fictitious when it is simulated, feigned or is
not a genuine deposit account or transaction, e.g. Money or Equivalent (of money) was made
to appear to have been Received by a Bank, or the deposit account or the name of the
depositor does not appear in the records of the bank.
3. A deposit account or transaction shall be deemed fraudulent whenever the bank and/or
depositor knowingly employ means calculated to deceive, including acts, omissions and
concealment involving a breach of legal or equitable duty, trust, or confidence justly reposed,
resulting in damage to another, or by which an undue and unconscientious advantage is taken
of another, e.g. the named depositor denies ownership of the deposit.
c.

Budget of PDIC
So the budget of PDIC is generated through the assessment of member banks at a rate of 1/5 of 1% of
their total liabilities per annum. So for example, 1% of BDO’s total deposit liabilities is P1,000,000 so 1/5
of it which is 200,000 is paid to PDIC as an insurance premium. So if napinsaran niyo man kun sin o
gabayad for insurance kang deposits kay diba normally kita bay gabayad lang life insurance ta pro sa
PDIC, it is actually the banks that pay the insurance premium part rian man kang anda responsibility.

Notice of Closure

Kinanglan ka corporation nga mag-issue ka notice sa mga depositors kang closed banks para syempre
maman-an ka mga depositors nga may i-claim snda nga insured deposits sa bank nga to. Dapat man nga
issuance of notice will as frequent as one a week for three consecutive weeks. So dapat ang notice nga
ja will be published sa mga general circulation nga mga newspaper or mga newspaper nga gina-circulate
sa location kang closed bank.

Payment of insured deposits

So ang payment kang insured deposits ta is not basta-basta kay the Corporation may still ask for further
proof of claims to be filed before sanda mag-issue ka payment. Kag kung di pa gid satisfied ang
corporation sa viability kang claim of an insured deposit, it may require final determination of a court of
a competent jurisdiction antis snda magtugro ka bayad for the insured deposit. Moreover, if di ma-settle
kang corporation ang sngka claim within 6 months halin sa date nga file ang claim and the delay was
because of abuse of discretion, negligence, bad faith, and malice, the one responsible for the delay
would be to subject to imprisonment from 6 months to one year.

(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.
(3) Provided, further, That 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)

WITHHOLD PAYMENT
The Corporation may withhold payment of such portion of the insured deposit of any depositor in a
closed bank as may be required to provide for the payment of any liability of such depositor as a
stockholder of the closed bank, or of any liability of such depositor to the closed bank or its receiver,
which is 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.

Depositors with valid deposit accounts with balances of Php100,000 and below are not required to file
claims provided they have no obligations with the closed bank and have complete and updated
addresses in the bank records or have updated these through the MAUF

Financial assistance

Is done by the BOD in consideration of the role of the bank sa economy kay man some banks are
relevant gid kay man they provide adequate banking services sa community and that have a huge
influence sa financial stability in the economy.

The PDIC is the statutory receiver and liquidator of closed banks. PDIC takes over banks ordered closed
by the Monetary Board; administers closed banks' assets, records and affairs; and preserves and
disposes these assets for the benefit of the creditors and uninsured depositors.

When the Monetary Board orders the liquidation of a bank that has been placed under receivership, its
assets are managed, liquidated, and distributed to creditors and uninsured depositors according to the
preference and concurrence of credits as provided for by the Civil Code of the Philippines.

SECTION 13. To carry out the purposes of this Act, the permanent insurance fund shall be Three billion
pesos (P3,000,000,000.00).

SECTION 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.

Unless otherwise waived by the Corporation, if the depositor in the closed bank shall fail to claim his
insured deposits with the Corporation within two (2) years from actual takeover of the closed bank by
the receiver, or does not enforce his claim filed with the corporation within two (2) years after the two-
year period to file a claim as mentioned hereinabove, all rights of the depositor against the Corporation
with respect to the insured deposit shall be barred; 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.

WHO SHOULD SIGN THE CLAIM FORM?

DEPOSITOR of the account - for depositor 18 years old and above

PARENT of depositor below 18 years old

AGENT in the case of "by" account

TRUSTEE in the case of "In Trust for (ITF)" account

EACH DEPOSITOR/ACCOUNT HOLDER for account maintained as "Or", "And/Or" or "And" in the case of
joint accounts

AUTHORIZED REPRESENTATIVE/s for business entities, deceased depositors and person who has Special
Power of Attorney (SPA) from the depositor.

If the deposit account in a closed bank is more than P500,000.00, what happens to the
excess of the maximum amount of insured deposit?

The claim for the uninsured portion of the deposit is a claim against the assets of the closed
bank.

The claim may be filed with the Liquidator of the closed bank within sixty (60) days from
publication of notice of closure. However, payment of said claim will depend on the bank’s
available assets and approval of the Liquidation Court. The schedule of payment beyond the
P500,000.00 maximum insurance shall be based on priorities set by law.

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 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)