PHILIPPINE DEPOSIT INSURANCE Effective promotion of financial

CORPORATION (RA 3591, AS inclusion through early intervention in

AMENDED) problem banks or open bank
resolution

● Created in 1963 to insure the In cases of inevitable bank closures, the

deposits of all banks which are recovery of creditor’s claims against the
entitled to the benefits of assets is enhanced by preventing further
insurance. dissipation of these assets through
● Latest amendments under seamless transition from bank closure to
Republic Act no. 10846, signed on liquidation.
May 23, 2016
● PDIC is an attached agency of the The following would enhance the recovery
Dept. of Finance rate for creditors of closed banks:

● immediate assignment of
RA 10846 includes provisions that encumbered assets to closed bank
empower the Corporation with stronger creditors
authorities to protect the depositing public ● adoption of purchase of assets
and promote financial stability and ensure ● assumption of liabilities as a mode
that PDIC remains financially and of liquidation
institutionally strong to fulfill its mandate ● express prohibition on reopening of
under its charter. banks ordered closed by the
Monetary Board of the BSP.

PDIC has now the authority to:

The new law does away with the 90-day
o Help depositors have quicker
receivership and allows PDIC to proceed
access to their insured deposits
directly to liquidation
should their bank close
o Resolve problem banks while still
Functions of PDIC
open;
o Safeguard
o Hasten the liquidation process for
o Investigate
closed banks
o Liquidate
o Mete out stiffer sanctions and
penalties against those who
As a DEPOSIT INSURER shall promote
engage in unsafe and unsound
and safeguard the interests of the
banking practices
depositing public by providing permanent
and continuing insurance coverage on all
Quicker access to insured deposits
insured deposits.

PDIC has now the authority to pay insured As CO-REGULATOR OF BANKS, the
deposits without netting depositors' loan PDIC conducts offsite and onsite
obligations with the closed bank, and monitoring of banks to ensure that banks
based on evidence, and not on the closed are managed well and are not conducting
bank's records alone. business in an unsafe and unsound
 manner. The PDIC also assists in Systemic Risk - is the possibility that
strengthening banks through bank failure of one bank to settle net
strengthening activities and financial transactions with other banks will trigger a
assistance. chain reaction.

As the statutory RECEIVER AND Deposit Accounts not Entitled to

LIQUIDATOR of closed banks, the PDIC Payment
shall take over banks ordered closed by
the Monetary Board. It administers closed 1. Deposit products that resulted
from splitting of deposit.
banks’ assets, records and affairs, and
preserves and disposed these assets for Splitting of deposit is present when:
the benefit of the creditors and uninsured
 A deposit account with an outstanding
depositors.
balance more than P500,000 is broken
down and transferred to two or more
Which Deposits are insured? accounts in the name of persons or
entities who have no beneficial
 Legitimate deposit (net of obligation) ownership in the transferred deposits in
 As of the date of closure their names.
 Not to exceed P500,000  Within 120 days immediately preceding
or during a bank-declared bank holiday
Banks or banking institutions engaged in or immediately preceding a closure order
the business of receiving deposits shall be issued by the Monetary Board.
insured with the PDIC.  For the purpose of availing the maximum
deposit insurance coverage.
IS THE MAXIMUM DEPOSIT
INSURANCE FIXED?
A criminal act punishable by imprisonment
NO. The amount of coverage may be of not less than 6 years but not more than
adjusted in such amount, for such a 12 years or a fine not less than P50,000
period, and/or for such deposit products, but not more than P10,000,000, or both,
provided: at the discretion of the court.
 There is a condition that threatens
the monetary and financial stability
2. Deposits products or money
of the banking system that may
placements by the head office of
have systematic consequences, as a foreign bank in its branch in
determined by the Monetary the Philippines because there is
Board. only one entity.
 A unanimous vote of the PDIC
Board of Directors in a meeting 3. Deposits that are determined to
called for and chaired by the DOF be the proceeds of an unlawful
Secretary. activity as defined under RA
 Approval of the President of the 9160 or the Anti-Money
Philippines. Laundering Act, as amended.
 Deposits that are determined to be the duty, trust, or confidence justly reposed,
proceeds of an Unlawful Activity shall be resulting in damage to another, or by
governed by the following rules: which an undue and unconscientious
 Payment of deposit insurance shall be advantage is taken of another, e.g. the
deferred on any deposit which is the named depositor denies ownership of the
subject matter of any freeze order, civil deposit.
forfeiture proceedings, money laundering
case, or any other case involving an
Unlawful Activity, pending before the 6. Deposit accounts or transactions
Department of Justice, Office of the constituting and/or emanating from
Ombudsman, or the regular court. unsafe and unsound banking
 Deposit insurance payments shall only practice/s, as determined by PDIC,
be made upon a final judgment in consultation with BSP, after due
effectively holding that the deposits do notice and hearing, and publication
not constitute proceeds of an Unlawful of a cease and desist order issued
Activity. by PDIC against such deposit
 Deposits determined with finality by the accounts or transactions.
courts to be proceeds of an Unlawful Principles in the Determination of Unsafe
Activity shall not be paid deposit and/or Unsound Deposit-Related
insurance.
o Unreasonable delay in the
4. Deposits payable in a place outside processing or determination of the
the Philippines (like those in foreign validity of deposit claims in the
branches) event of bank closure; or
o Material loss or damage or
5. Deposits accounts or transactions abnormal risk to the bank’s
which are unfunded and that are depositors, creditors, shareholders,
fictitious or fraudulent or to the PDIC; or
 A deposit account or transaction shall be o Material loss or damage or
deemed unfunded when no Money or abnormal risk or danger to the
Equivalent (of money) is Received by a safety, stability, liquidity, or
Bank for such account or transaction. solvency of the bank.
 A deposit account or transaction shall be Unsafe and/or Unsound Deposit-Related
deemed fictitious when it is simulated, Practices
feigned or is not a genuine deposit
account or transaction, e.g. Money or o Performance of any deposit-related
Equivalent (of money) was made to practice, activity, or transaction
appear to have been Received by a without the requisite approvals or
Bank, or the deposit account or the name without adequate controls, as
of the depositor does not appear in the mandated by existing laws, rules,
records of the bank. and regulations, which may result
 A deposit account or transaction shall be to unaccounted, undocumented
deemed fraudulent whenever the bank and/or unrecorded deposits.
and/or depositor knowingly employ o Failure to keep bank records
means calculated to deceive, including (printed and/or electronic) within
acts, omissions and concealment the bank premises especially
involving a breach of legal or equitable deposit documents such as, but not
 limited to, signature cards, Determination of the Amount Due
depositor information files, and
deposit ledgers. Per Bank:

The entitlement to deposit

o Granting high interest rates when the
insurance is on a per bank basis.
bank has: (i) negative unimpaired capital
and (ii) either a liquid assets-to-deposits Such that if Mr. X has deposit with
ratio of less than 10% or an operating A Bank and B Bank and both banks
loss.
closed, Mr. X is entitled to P500,000
o Non-compliance with PDIC Regulatory
insurance coverage for each bank.
Issuances.
o Other deposit-related practices, activities, Per Deposit, Per Capacity Rule:
and transactions which the PDIC may
identify through appropriate issuances. All deposit in the bank maintained
in the same right and capacity for his
7. Investment products such as bonds and benefit either his own name or in the
securities, trust accounts and other name of other shall be added together in
similar instruments. determining the insured amount, and
Grounds that may be considered to determine regardless of the type of account.
the product as investment:
 “By” account (Mr. X by Mr. Y)- Mr.
o No debtor-creditor relationship exists X is the depositor
between the bank and the client;  “ITF”/ In Trust For account (Mr. X
o Relationship between the bank and the ITF Mr. Y)- Mr. Y is the depositor
client is either that of a trustee-trustor or  “FAO”/ For the Account of (Mr. X
an agent-principal; FAO Mr. Y)- Mr. Y is the depositor
o Principal amount is not protected;
o Amount deposited is not withdrawable Individual Accounts:
on demand; and/or All individual accounts, including
o Other analogous features.
accounts where ownership is vested in
him, shall be insured to a maximum of
P500,000.Joint Accounts:
Illustration
Regardless of whether the
Mr. X maintains P250,000 in ABC Bank’s
conjunction “and”, “or”, “and/or” is used
Manila Branch and P300,000 in ABC
shall be insured separately from any
Bank’s US Branch. In the event of a
individual owned deposit account
closure of ABC Bank, how much is Mr. X’s
insured deposit? 1. If the account is held jointly by two
or more natural persons, or by two
Answer: P250,000. Since the
or more juridical persons or
P300,000 deposited in ABC Bank’s entities, the maximum insured
USA Branch is not covered being deposit shall be divided into:
payable outside of the Philippines.
GR: as many equal shares as
there are individual.
 XPN: any amount of share per
individual if a different sharing is
stipulated.
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
individual, juridical person, or entity, shall
likewise be subject to the maximum
insured deposit of P500,000.
 Illustration 1:

How much is Logan Mercado’s insured deposit if he has the following four deposit accounts
in XYZ Bank?

Insured
Account Name Deposit (in Deposit of
Php) Logan
Mercado

Logan Mercado 200,000 200,000

Robin Lee For the 150,000 150,000

Account of Logan Mercado

James Felipe In Trust For 100,000 100,000

Logan Mercado

Logan Mercado’s Eatery 350,000 50,000

(Sole Proprietorship)

TOTAL 800,000 500,000

Illustration 2:

Julien Philips maintains the following accounts with LOL Bank:

Account Name Type of Balance

Deposit

Julien Philips Demand 300,000

Julien Philips AND Jaime Pete Savings 750,000

Julien Philips OR Cossette Andrews Time 600,000

How much is the total insured and uninsured deposit of Julien Philips?

Account Name Type of Deposit Balance Insured Uninsured

Julien Philips Demand 900,000 500,000 400,000

Julien Philips AND Jaime Pete Savings 700,000 350,000 0

Julien Philips OR Cossette Andrews Time 600,000 150,000 150,000

TOTAL 1,000,000 550,000

2. If Julien Philips has another joint account with Margie Chris with a balance of
Php540,000, how much is the total (a) insured and (b) uninsured deposit of Julien
Philips?
Answer:

(a) Insured = Php 0

(b) Uninsured = Php270,000

 The share of Julien Philips in the joint account will be Php270,000 (Php540,000 ÷
2), but there is no more deposit insurance coverage available for Julien since he
has already exhausted the maximum Php500,000 deposit insurance coverage
with the first two joint accounts as illustrated above.
Procedures for the PDIC

PDIC shall publish the

PDIC shall give notice once a week for
PDIC shall
notice to the atleast 3 consecutive
commence the
depositors of the weeks in a newspaper
determination of
closed bank of the of general circulation
insured deposits
insured deposits due or, when appropriate, in
due the depositors of a newspaper circulated
them by whatever
a closed bank upon in the community or
means deemed
its actual takeover of communities where the
appropriate by the
the closed bank. closed bank or its
Board of Directors.
branches are located.

Certificate of Deposits  With accounts not eligible for early

payment, regardless of type of
No owner/holder of any negotiable of account and account balance per
certificate of deposit shall be recognized as advice of PDIC; and
a depositor entitled to the rights in PDIC Act  Who are deceased whose filing of
unless his name is registered as claim is thru the legal heirs.
owner/holder thereof in the books of the
issuing bank.
Depositors NOT REQUIRED to file deposit
When are Claims filed?
insurance claims
Claims are filed during the onsite Claims
Depositors with valid deposit accounts with
Settlement Operations (CSO) period, as
balances of P100,000.00 and below are not
announced in the Notice to Depositors
required to file claims, provided they:
published in national or local newspapers, or
posted in the bank premises and  Have no obligations with the closed
conspicuous places within the locality, and in bank, or have not acted as co-makers
the PDIC website. of these obligations, or are not
spouses of the borrowers;
Depositors required to file deposit insurance  Have complete mailing address
claims found in the bank records or have
updated their addresses through the
 With valid deposit accounts with
Mailing Address Update Form
balances of more than P100,000.00;
(MAUF) of PDIC before the start of
 With outstanding obligations with
the onsite claims settlement
the closed bank either as borrower,
operation; and
co-maker, or as spouse of borrower;
 Have not maintained the account
 With incomplete mailing address
under the name of business
found in the bank records, or failed to
entities
update them through the MAUF
issued by the PDIC;
 With accounts maintained under the
name of business entities;
WHO SHOULD SIGN THE INSURANCE corporation responsible for
CLAIM? [D.P.A.T.E] the delay.
 It might lead to imprisonment
1. Depositor of the account- applicable to from 6 months to 1 year
depositors 18 years old and above

2. Parent- applicable to depositors 18 years

old below COMMENCEMENT OF DETERMINATION
OF INSURED DEPOSITS
3. Agent- in case of “by” accounts
 Upon actual takeover of the
4. Trustee- in the case of “In Trust for” (ITF) corporation to the closed bank
accounts  Corporation shall publish the notice
once a week for at least three
5. Each depositor - in case of joint accounts consecutive weeks in a newspaper
such as “Or”, “And/Or” or “And” accounts of general circulation or in a
newspaper circulated in the
community or communities where
PAYMENT OF INSURED DEPOSITS
the closed bank or its branches are
MODES OF PAYMENT (as soon as located
possible by either: ) WITHHOLDING OF PAYMENT
1. Cash - The corporation may withhold
2. By making available to each depositor payment of such portion of the
a transferred deposit in another insured deposit for the payment of
insured bank in an amount equal to any liability of such depositor as a
insured deposit of such depositor stockholder of the closed bank, or of
PROOF OF CLAIM any liability of such depositor to the
closed bank or its receiver, which is
 The PDIC, in its discretion, may not offset against a claim due from
require proof of claims to be filed such bank, pending determination
before paying the insured deposits and payment of such liability by such
 Corporation is not satisfied as to depositor or any other liable
viability of a claim? therefore.
 it may require final
determination of a court of
competent jurisdiction before PERIOD FOR THE DEPOSITOR TO FILE
paying such claim AND ENFORCE CLAIM

FAILURE TO SETTLE THE CLAIM WITHIN

6 MONTHS 1. Period to file claim – 2 years from
actual takeover of the closed bank
 Failure is due to grave abuse of 2. Period to enforce claim – 2 years
discretion, gross negligence, bad after the 2- year period to file a claim
faith, or malice?
 Subject the directors, officers
or employees of the
EFFECTS OF FAILURE TO COMPLY Period for the PDIC to settle the claim
WITHIN THE PERIOD:
 within six (6) months from the date
1. All rights of the depositor against the of the filing of the claim
PDIC with respect to the insured Failure to settle claim of insured
deposit shall be barred depositor
2. All rights of the depositor against the
closed bank and its shareholders or General Rule: Failure to settle the claim
the receivership estate to which PDIC within six months from the date of filing of
may have become subrogated shall claim for insured deposit shall, upon
thereupon revert to the depositor conviction, subject the directors, officers or
3. PDIC shall be discharged from any employees of the PDIC responsible for the
delay to imprisonment from six months to
liability on the insured deposit
one year.
Requisite: The failure was due to the grave
Effect of Payment abuse of discretion, gross negligence, bad
faith, or malice of the directors, officers or
What are the effects of payment to any employees.
depositor his insured deposit?
Exception: The period shall not apply if
1.The PDIC shall be discharged from liability validity of the claim requires the resolution of
to the depositor issues of facts and or law by another office,
body or agency.
2.The PDIC shall be subrogated to all rights
of the depositor against the closed bank to
the extent of such payment
Subrogation - include the right on the
part of PDIC to receive the same
dividends from the proceeds of the
assets of such closed bank and
recoveries on account of stockholders’
equity as would have been payable to
the depositor on a claim for the insured
deposit
depositor shall retain his claim for
any uninsured portion of his deposit
Payments of insured deposits as
preferred credit
-payments of insured deposits in closed
banks partake of the nature of public
funds, and as such, must be considered
a preferred credit similar to taxes due to
the National Government in the order of
preference under Article 2244 of the
New Civil Code
 DEFINITION OF TERMS liquidated or unliquidated, fixed or
contingent, matured or current, denied by
Anti-Money Laundering Act - pursuant to the receiver.
this act, the Anti-Money Laundering Council
is created to protect the integrity and Insured Deposit – means the amount due
confidentiality of bank accounts and to to any bonafide depositor for legitimate
ensure that the Philippines shall not be used deposits in an insured bank as of the date of
as a money laundering site for the proceeds closure but not to exceed P500,000.
of any unlawful activity. Maximum Deposit Insurance Coverage - a
Bank and banking institution – shall be deposit insurance on all valid deposits up to
synonymous and interchangeable and shall the Maximum Deposit Insurance Coverage
include banks, commercial banks, savings (MDIC) of Php500,000 per depositor of a
banks, mortgage banks, rural banks, closed bank.
development banks, cooperative banks, Monetary Board - exercises the powers and
stock savings and loan associations and functions of the BSP, such as the conduct of
branches and agencies in the Philippines of monetary policy and supervision of the
foreign banks and all other corporations financial system.
authorized to perform banking functions in
the Philippines. Publication - refers to the one-time printing
in a newspaper of general circulation.
Beneficial Ownership - exists when a
deposit is maintained in the same right and - Such other acts or omissions which the
capacity for a depositor’s benefit, whether in PDIC Board, through regulation or
his own name or in the name of others. resolution, may determine to constitute as
(Section 4 (g), PDIC Charter) conducting business in an unsafe and/or
unsound manner.
Closed bank – refers to a bank placed
under liquidation by the Monetary Board. Receiver – refers to the PDIC or any of its
duly authorized agents acting as receiver of
Deposit - refers to the unpaid balance of a closed bank.
money or its equivalent received by a bank
in the usual course of business and for Records – include all documents, titles,
which it has given or is obliged to give credit papers, and electronic data of the closed
to a commercial, checking, savings, time or bank, including those pertaining to deposit
thrift account, or created/issued in accounts of and with the closed bank, its
accordance with Bangko Sentral rules and assets, transactions and corporate affairs.
regulations and other applicable laws,
Surplus Dividends – refers to the
together with such other obligations of a
remaining assets of the closed bank after
bank, which, consistent with banking usage
satisfaction in full of all liquidation costs, fees
and practices, the PDIC Board of Directors and expenses, and valid claims.
shall determine and prescribe by regulations
to be deposit liabilities of the bank. Trust funds – means funds held by an
insured bank in a fiduciary capacity and
Disputed Claim – refers to a claim or suit
includes without being limited to, funds held
against the assets of a closed bank, or for
as trustee, executor, administrator, guardian
specific performance, or breach of contract, or agent.
or damages, of whatever nature or
character, whether for money or otherwise,
Unlawful Activity - refers to any act or
omission or series or combination thereof
involving or having direct relation to the
enumerations laid down in Section 3(i) of
Republic Act No. 9160, otherwise known as
the “Anti-Money Laundering Act of 2001, as
amended.”
Unsafe and/or Unsound Banking Practice
- refers to:
- Any act or omission which constitutes
conducting business in an unsafe and/or
unsound manner pursuant to PDIC Board
Resolution No. 2010-02- 003, which adopted
the guidelines and principles contained in
BSP Circular No. 341, series of 2002, as
amended by BSP Circular No. 640, series of
2009, or
- Such other acts or omissions which the
PDIC Board, through regulation or
resolution, may determine to constitute as
conducting business in an unsafe and/or
unsound manner.
Valid claim – refers to the claim recognized
by the receiver or allowed by the liquidation
court.
PHILIPPINE DEPOSIT INSURANCE CORPORATION (MCQs)

1. The following are the composition of the board of directors of the Philippine
Deposit Insurance Corporation (PDIC), except:
a. Governor of the BSP
b. Secretary of Finance
c. President of the PDIC, who shall be appointed by the President of the
Philippines
d. Four members from the private sector to be appointed by the President of
the Philippines
e. None of the above

2. Statement 1: PDIC promotes and safeguard the interests of the depositing public
by providing insurance coverage on some insured deposits.
Statement 2: PDIC also helps in maintaining a sound and stable banking system.
a. Only Statement 1 is true.
b. Only Statement 2 is true.
c. Both statements are true.
d. Both statements are false.

3. Which of the following will not enhance the recovery rate for creditors of closed
banks?
a. Immediate assignment of encumbered assets to closed bank creditors
b. Adoption of purchase of assets
c. Assumption of liabilities as a mode of liquidation
d. Reopening of banks ordered closed by the Monetary Board of the BSP

4. It means the unpaid balance of money or its equivalent received by 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, evidenced by a
passbook, certificate of deposit, or other evidence of deposit issued in
accordance with Bangko Sentral ng Pilipinas rules and regulations and other
applicable laws, together with such other obligations of a bank.
a. Insured deposit
b. Insured bank
c. Disputed claim
d. Deposit

5. It means the amount due to any bonafide depositor for legitimate deposits in an
insured bank as of the date of closure but not to exceed 500,000
a. Insured deposit
b. Insured bank
c. Disputed claim
d. Deposit
6. The following are the functions of the PDIC, except
a. to investigate banks
b. to safeguard deposits
c. to audit bank financial statements
d. to liquidate closed banks

7. The maximum insurance per depositor by PDIC is _____

a. always fixed at P500,000
b. P500,000 and can be adjusted
c. always fixed at P5,000,000
d. P5,000,000 and can be adjusted

8. The possibility that failure of one bank to settle net transactions with other bank
will trigger a chain reaction, depriving other banks of funds lending to a general
shutdown of normal clearing and settlement activity
a. chain-reaction risk
b. universal risk
c. systematic risk
d. systemic risk

9. In addition to the powers of a receiver provided under existing laws, the PDIC, as
receiver of a closed bank, is empowered to:
a. Represent and act for and on behalf of the closed bank
b. Gather and take charge of all the assets, records and affairs of the closed
bank, and administer the same for the benefit of its creditors
c. Convert the assets of the closed bank to cash or other forms of liquid
assets
d. All of the above

10. Statement I: The receiver is authorized to adopt and implement, without need of
consent of the stockholders, board of directors, creditors or depositors of the
closed bank, any or a combination of the modes of liquidation.
Statement II: The officers, employees, deputies, assistants and agents of the
receiver shall have no liability and shall not be subject to any action, claim or
demand in connection with any act done or omitted to be done by them in good
faith in connection with the exercise of their powers and functions.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false

11. This occurs whenever a deposit account with an outstanding balance of more
than the statutory maximum amount of insured deposit maintained under the
name of persons is broken down and transferred to two or more accounts in the
name of persons or entities who have no beneficial ownership on transferred
deposits in their names within 120 days immediately preceding or during a bank-
 declared bank holiday, or immediately preceding a closure order issued by the
Monetary Board to await of the maximum deposit insurance coverage
a. Insured Deposit
b. Splitting of deposit
c. Transfer deposit
d. Inter-batch deposits

12. _______ exists when a deposit is maintained in the same right and capacity for
a depositor’s benefit, whether in his own name or in the name of others.
a. Principal-Agent relationship
b. Partnership
c. Beneficial ownership
d. Unlawful act

13. Depositor X maintains both individual and joint accounts. His deposits may be
insured up to a total of
a. P500,000
b. P1,000,000
c. P250,000
d. P2,000,000

14. If the deposit account is held by a juridical person or entity jointly with one or
more natural persons, the maximum insured deposit shall belong to
a. P500,000 to juridical person/entity and another P500,000 to natural
person
b. P250,000 to juridical person/entity and another P250,000 to natural
person
c. P500,000 entirely to natural person
d. P500,000 entirely to juridical person/entity

For numbers 15 to 16, refer to the information given below:

15. How much in the total insured deposit of Kelly Santos assuming she maintains all
the deposit accounts above in the same bank?
a. Php1,000,000
b. Php500,000
c. Php650,000
d. Php980,000
16. How much in the total uninsured deposit of Kelly Santos assuming she maintains
all the deposit accounts above in the same bank?
a. Php140,000
b. Php330,000
c. Php240,000
d. Php190,000

17. The couple Mocha and Cashew have the following account balances with BDO:
Mocha: 500,000
Cashew: 500,000
Mocha and/or Cashew: 500,000
Assuming that BDO was closed, how much can Mocha recover from PDIC?
a. 250,000
b. 500,000
c. 750,000
d. 1,000,000

18. How much is the uninsured amount of Mocha?

a. 250,000
b. 500,000
c. 750,000
d. 1,000,000

19. Who is NOT required to file deposit insurance claims?

a. LBJ, when failed to update his mailing address through the MAUF issued
by the PDIC.
b. KD, which has a valid deposit accounts with balances of more than
100,000.
c. AD, who maintains its accounts under the name of business entity.
d. MJ, which has valid deposit accounts with balances of P100,000 and
below, has no obligation with the closed bank and has complete and
updated addresses.
20. In the management and/or conversion of the assets of the closed bank, the
receiver shall have the authority to:
I: conduct a physical or ocular inspection of the properties owned by, or
mortgaged to, the closed bank, to determine their existence and present
condition
II: determine the disposal price of assets in accordance with generally accepted
valuation principles, standards and practices
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false

21. Statement I: Failure to settle the claim within 8 months due to grave abuse of
discretion, gross negligence, bad faith, or malice will subject the directors,
officers or employees of the corporation responsible for the delay up to
imprisonment from 6 months to two years.
Statement II: In case of failure to comply within the periods mentioned in this act,
PDIC will remain liable on the insured deposit

a. Only 1 statement is true

b. Both statements are true
c. Both statements are false

22. The period for the depositor to file claim from the actual takeover of the closed
bank is:
a. Within a year
b. Within 3 years
c. Within 6 months
d. None of the above

23. Whenever an insured bank shall have been closed by the Monetary Board, or
upon expiration or revocation of a bank’s corporate term, payment of the insured
deposit on such closed bank shall be made by PDIC as soon as possible by:
I: Cash
II: By making available to each depositor a transferred deposit in another insured
bank in an amount equal to insured deposit of such depositor

a. I only
b. II only
c. Either I or II
d. Neither I nor II
 24. The following statements are true regarding payments of insured deposits under
RA 3591, as amended except:

a. The PDIC, upon payment of any depositor shall be subrogated to all rights of
the depositor against the closed bank to the extent of such payment.
b. Failure to settle the claim, within 2 years 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.
c. Payments of insured deposits in closed banks partake of the nature of public
funds, and as such, must be considered a preferred credit similar to taxes due
to the National Government.
d. The settlement period shall not apply if validity of the claim requires the
resolution of issues of facts and or law by another office, body or agency.

25. The PDIC shall settle the claim within __________ from the date of filing of claim
for insured deposit.
a. 90 days
b. 2 years
c. 6 months
d. 1 year

Answers:
1. e. None of the above
2. b. Only Statement 2 is true.
3. d. Reopening of banks ordered closed by the Monetary Board of the BSP
4. d. Deposit
5. a. Insured deposit
6. c. to audit bank financial statements
7. b. P500,000 and can be adjusted
8. d. systemic risk
9. d. All of the above
10. c. Both are true
11. b. Splitting of deposit
12. c. Beneficial ownership
13. b. P1,000,000
14. d. P500,000 entirely to juridical person/entity
15. c. Php650,000
16. a. Php140,000
17. c. 750,000
18. a. 250,000
19. d. MJ, which has valid deposit accounts with balances of P100,000 and below, has
no obligation with the closed bank and has complete and updated addresses.
20. c. Both are true
21. a. Only 1 statement is true
22. d. None of the above
23. c. Either I or II
24. b. Failure to settle the claim, within 2 years 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.
25. c. 6 months

BSA 3-1 GROUP 1

Guanizo, Kristine Mae Villas, Aiza Mae

Salvador, Ann Pauline

Manalo, Jenn Maica

San Pedro, Jasper

Pena, Kyle Khristopher

Saliente, Mary Faye

Sieza, Deniela Danilyn

Bello, Angelica