PDIC LAW

PDIC Coverage:
Maximum of P 500,000 – Excess amount – uninsured by PDIC
Single Deposit account -T/D/C/S – P500,000
Joint Account: P500,000
a. With a natural person – Juan Dela Cruz and / or Pedro Penduko – P 800,000
Rule: 1. Based on the sharing agreement – 60:40 = 300K:200K
2. Equally – 50:50 = 250K: 250K
Uninsured portion – 300,000 – claim from the remaining assets of the
bank. (ADP)
b. With a Juridical person – Juan Dela Cruz and or ABC Corporation – P800K
Rule: It attributable to the Juridical Person
Insured portion – 500,000 – attributable to ABC Corporation only
ITF (In trust for) / By – Agent? Principal?
Pedro Penduko ITF Juan Dela Cruz – Principal – account- Insured JDC
Pedro Penduko BY Juan Dela Cruz – Agent- account – Insured PP

1. This is an act enhancing the resolution and liquidation framework for

banks?
A. RA. No. 3591 C. RA. No. 11232
B. RA No. 10846 D. RA No. 11032

2. Which of the following is true regarding PDIC?

A. It means Philippine Deposit Insurance Corporation
B. It is the corporation that shall insure the deposits of all banks which are
entitled to the benefits of insurance under the law
C. It shall as a basic policy, promote and safeguard the interests of the
depositing public by providing insurance coverage on all insured deposits
and helping maintain a sound and stable banking system
D. All of the above

3. The powers and functions of the PDIC - “Corporation” shall be vested in

and exercised by?
A. Board of Trustees
B. Board of Directors
C. Governor of the BSP
D. Secretary of Finance
4. The Board of the Director shall be composed of the following, except?
A. Secretary of Finance
B. Governor of the BSP
C. President of the Corporation appointed by the President of the Philippines
D. Four members from the public sector to be appointed by the President
of Philippines

5. If the President of the Corporation shall serve as the Vice Chairman of

the board, who is the Chairman of the board?
A. Governor of the BSP
B. Secretary of Finance
C. President of the Philippines
D. None of the above

6. The members from private sector appointed by the President of the Philippines
shall serve for how many years?
A. 5 years and shall be subject to one (1) reappointment
B. 6 years with no reappointment
C. 5 years with no reappointment
D. 6 years and shall be subject to one (1) reappointment

7. The following are the qualifications of a person appointed as member of

the board, except?
A. He or she be of good moral character, of unquestionable integrity and
responsibility, of known probity and patriotism.
B. He is competent in economics, banking and finance, law, management
administration or insurance.
C. He is at least thirty (30) years of age
D. He is at least thirty-five (35) years of age

8. The President of the Philippines may remove any appointive member of the
Board of Directors for any of the following reasons, except?
A. If the member is Physically or Mentally incapacitated which lasted for
more than six (6) months
B. If the member is guilty of acts or operations which are of fraudulent or
illegal character or which are manifestly opposed to the aims and interests
of the Corporation
C. If the member no longer possesses the qualifications specified in this Act
D. If the member meet the standards for performance based on the
evaluation by the Governance Commission for Government-Owned or -
Controlled Corporations

9. What is the required quorum of the board?

a. Presence of at least three (3) members
b. Presence of at least four (4) members
c. Presence of two-thirds members
d. Presence of all the members
10. What is the basis in preparing the so called “asset distribution plan” for the
distribution of assets of a closed bank to its creditors?
A. Based on its estimated realizable value as of a certain cut-off date
B. Based on its estimated carrying value as of a certain cut-off date
C. Based on its actual carrying value as of a certain date
D. Based on it cost as of a certain cut-off date

11. What is a closed bank?

A. A bank that is not open for business during weekends
B. A bank that is not open for business during holidays
C. A bank placed under liquidation by the Monetary Board
D. A bank that has assets greater than liabilities

12. Statement 1: Disputed claim refers to a claim or suit against the assets of a
closed bank, or for specific performance, or breach of contract, or damages, of
whatever nature or character, whether for money or otherwise, liquidated or
unliquidated, fixed or contingent, matured or current, denied by the receiver.
Statement 2: Insured bank means any bank the deposits of which are insured
in accordance with the provisions of PDIC Act.
A. True; True
B. True; False
C. False; True
D. False; False

13. What is an insured deposit?

A. It means the amount due to any bonafide depositor for legitimate deposits
in an insured bank as of the date of closure but shall exceed two hundred
fifty thousand pesos (P250,000.00).
B. 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 Two hundred
fifty thousand pesos (P250,000.00).
C. It means the amount due to any bonafide depositor for legitimate deposits
in an insured bank as of the date of closure but shall exceed Five hundred
thousand pesos (P500,000.00).
D. 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
Five hundred thousand pesos (P500,000.00).

14. Which of the following is true regarding insured deposits?

A. 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 or her benefit either in his or her own name or in the name of others.
B. A joint account regardless of whether the conjunction ‘and’, ‘or’, ‘and/or’
is used, shall be insured separately from any individually-owned deposit
account.
C. Both A and B
D. None of the above
15. Allan has savings account and checking account in VDO Baguio Branch bank
amounting to P350,000 and P 1,000,000, respectively. In case the said bank
turned bankrupt, how much can Allan claim from PDIC?
A. P 350,000
B. P 500,000
C. P 850,000
D. 1,350,000

16. Ben has savings account in VDO Manila branch amounting to P 700,000 and
VDO Davao Branch amounting to P 600,000. In case of bankruptcy, how
much can Ben claim from the PDIC?
A. P500,000 from VDO Manila savings and P 500,000 from VDO Davao
savings
B. Only P 500,000
C. P 1,300,000 Total insured deposit
D. None because the bank is already bankrupt

17. Carlo has savings account in VDO Quezon City branch amounting to P
450,000 while he has Checking account in PNV Cebu branch amounting to P
1,200,000. How much can Carlo claim from PDIC if both banks turned
bankcrupt?
A. P 0
B. P 500,000
C. P 950,000 = [ VDO – 450,000 + PNV – 500,000 ] – Uninsured – 700,000
(ADP)
D. P 1,000,000

18. Denver has savings account in Chinese Bank Bohol Branch amounting to P
650,000 while he also has a joint account in the same bank with Nairobi
amounting to P 700,000. How much can he claim from the PDIC if the said
bank will be bankrupt? Insured Uninsured
A. P 500,000 Single: 650,000 = 500,000 150,000
B. P 750,000. Joint: 700,000 = (500,000 x 50%) (200,000 x50%)
C. P 850,000 = 250,000
D. P 900,000 750,000

19. If Elmer has a joint account with SMC Corporation amounting to P 7,000,000
in North-South Bank and also has joint account with a stockholder of the same
Corporation in the same bank amounting to P800,000. How much can Elmer
claim from PDIC in case of bankruptcy? Insured
A. P 250,000. Joint: With JP – 7,000,000 = Elmer – 0 SMC – 500,000
B. P 400,000With Natural P- 800K = Elmer- 500K x 50%. SH – 500Kx50%
C. P 500,000
D. P 900,000
20. Ferdie has joint account with Darwin in VPI Bank amounting to P300,000, he
has another joint account in the same bank with Sonny amounting to P
600,000 and lastly a joint with Jocel with same bank amounting to P 800,000.
How much can Ferdie claim from PDIC if VPI Bank will be declared bankrupt?
A. P 150,000
B. P 500,000
C. P 650,000
D. P 850,000

Joint Amount Ferdie Darwin Sonny Jocel Uninsured

F-D= 300,000 150,000 150,000
S-F= 600,000 250,000 250,000 100,000
J-F = 800,000 250,000 250,000 300,000
Total 650,000 150,000 250,000 250,000
(150,000)*
500,000
Uninsured 50,000+ 50,000 150,000
150,000+
150,000
350,000

21. The depositor must file his deposit insurance claim within how many months
from the date of bank turnover?
A. Six months from the takeover
B. Twelve months from the takeover
C. Eighteen months from the takeover
D. Twenty four months from the takeover

22. If the deposit account in a closed bank is more than P 500,000, what happens
to the excess of the amount of insured deposit?
A. It cannot be recovered because the maximum insured deposit is up to P
500,000 only
B. It can be recovered from the PDIC subject to availability of the funds of
the said Corporation
C. It can be claimed against the assets of the closed bank since it is
considered as uninsured portion
D. The uninsured portion may be claimed from the Banko Sentral ng Pilipinas
as the mother of all banks

23. Statement 1: Liquidation court refers to the Municipal Trial Court (MTC) of
general jurisdiction where the petition for assistance in the liquidation of a
closed bank is filed and given due course.
Statement 2: Residual assets refer to assets, in cash or in kind, to be turned
over to the closed bank’s stockholders of record, in proportion to their interest
in the closed bank as of date of closure, after payment in full of liquidation
costs, fees and expenses, and the valid claims and surplus dividends to all the
creditors.
A. True; True
B. True; False
 C. False; True
D. False; False

24. Statement 1: Takeover refers to the act of physically taking possession and
control of the premises, assets and affairs of a closed bank for the purpose of
liquidating the bank.
Statement 2: Transfer deposit means, a deposit in an insured bank made
available to a depositor by the Corporation as payment of insured deposit of
such depositor in a closed bank and assumed by another insured bank.
A. True; True
B. True; False
C. False; True
D. False; False

25. The following are not covered by the PDIC insurance, except?
A. Debt Securities
B. Equity Securities
C. Deposit accounts or transactions which are fictitious or fraudulent as
determined by the Corporation
D. Deposits that are not determined to be the proceeds of an unlawful
activity as defined under Republic Act No. 9160

26. What proper body will determine if the insured bank is capital deficient?
A. Regional Trial Court
B. PDIC “the Corporation”
C. Banko Sentral ng Pilipinas (BSP)
D. Secretary of Finance

27. What is the proper assessment rate for each insured bank?
A. 1% of the total Assessment base
B. ½ of 1% of the total assessment base
C. 1/5 of 1% of the total assessment base
D. ½ of 1/5 of the Assessment base whichever is lower than P 5,000

28. How many votes of the PDIC Board are required to approve the merger or
consolidation of the Bank?
A. At least three (3)
B. At least Four (4)
C. At least Five (5)
D. At least Seven (7)

29. What proper Body declares the status of a closed bank?

A. PDIC
B. BSP
C. Monetary Board
D. Secretary of Finance

30. Who signed PDIC act into law?

A. President Gloria Macapagal Arroyo
B. President Ferdinand Edralin Marcos
C. President Rodrigo Roa Duterte
D. President Simeon Benigno Cojuanco Aquino