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PRESIDENTIAL DECREE No. 120 January 29, 1973
AMENDING REPUBLIC ACT NUMBERED THREE THOUSAND FIVE HUNDRED
NINETY-ONE, AS AMENDED, ENTITLED "AN ACTESTABLISHING THE PHILIPPINE
DEPOSIT INSURANCE CORPORATION, DEFINING ITS POWERS AND DUTIES AND
FOR OTHER PURPOSES"
WHEREAS, there were pending before Congress prior to the
promulgation of Proclamation No. 1081, dated September 21, 1972,
certain urgentmeasures proposing amendments to Republic Act No.
3591, as amended;
WHEREAS, the deposit insurance scheme has been adopted to
generate more faith and confidence in the banking system and the
Philippine DepositInsurance Corporation, as an insurer of bank
depositors, is entrusted not only with the vital role of protecting
depositors from loss resulting from bankclosures but also in
helping develop a sound and stable banking system;
WHEREAS, the recommendations contained in the report on the
Philippine financial system which have been accepted, with certain
modifications by themonetary authorities, included among others,
certain proposals geared toward ensuring the effectiveness of the
Corporation in performing its assignedtasks;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the
Constitution asCommander-in-Chief of all the Armed Forces of the
Philippines, and pursuant to Proclamation No. 1081, dated September
21, 1972, and General OrdeNo. 1, dated September 22, 1972, as
amended, and in order to effect the desired changes and reforms in
the social, economic, and political structure oour society, do
hereby order and decree the amendment of Republic Act No. 3591, as
amended, as follows:
Section 1. Section two of Republic Act Numbered Three thousand
five hundred ninety-one, as amended, is hereby amended to read as
follows:
"Sec. 2. The powers and functions of the Corporation shall be
vested in a Board of Directors consisting of three (3) members one
of whom shall be theGovernor of the Central Bank of the Philippines
and two of whom shall be citizens of the Republic of the
Philippines to be appointed by the President othe Philippines with
the consent of the Commission on Appointments. One of the
appointive members shall be the Chairman of the Board of Directors
othe Corporation who shall be appointed on a full time basis for a
term of six (6) years at an annual compensation which shall be
fixed by the President othe Philippines. The other appointive
member, who shall be appointed for a term of four (4) years and the
Governor of the Central Bank shall eachreceive a per diem of not
exceeding fifty pesos (P50.00) for each day of meeting actually
attended by them but in no case shall each of them receive
more than five hundred pesos (P500.00) a month. In the event of
vacancy in the office of the Governor of the Central Bank of the
Philippines, andpending the appointment of his successor or during
the absence of the Governor the Acting Governor of the Central Bank
of the Philippines shall act asmember of the Board of Directors. In
the event of a vacancy in the Office of the Chairman of the Board
of Directors and pending the appointment of hissuccessor, the
Governor of the Central Bank of the Philippines shall act as
Chairman. The members of the Board of Directors shall be ineligible
duringthe time they are in office and for a period of two years
thereafter to hold office, position or employment in any insured
bank, except that this restrictionshall not apply to any member who
has served the full term for which he was appointed. No member of
the Board of Directors shall be an officer ordirector of any
insured bank; and before entering upon his duties as member of the
Board of Directors, he shall certify under oath that he has
compliedwith this requirement and such certification shall be filed
with the Secretary of the Board of Directors. Any vacancy in the
Board created by the death,resignation, or removal of an appointive
member shall be filled by the appointment of a new member to
complete the unexpired period of the term of themember
concerned.
"The Board of Directors shall have the authority:
"1. To prepare and issue rules and regulations as it considers
necessary for the effective discharge of its responsibilities;
"2. To direct the management, operations and administration of
the Corporation;
"3. To appoint, fix the remuneration and remove any officer or
employee of the Corporation for cause: Provided, however, That
officers exercisingdiscretionary powers shall not be subject to the
Civil Service Law; and
"4. To authorize such expenditures by the Corporation as are in
the interest of the effective administration and operation of the
Corporation: Provided,however, That not later than one year after
the appropriation and release of the additional fifteen million
pesos for the permanent insurance fund asprovided in Section ten
(a-1) of this Act, the annual operating expenses of the Corporation
may amount to not more than the equivalent of the annuagross income
from the investment of the permanent insurance fund and not more
than fifteen per cent of the first ten million pesos of all other
income,such as assessments and earnings from the investment of
funds of the Corporation other than the permanent insurance fund:
Provided, further, That iall other income exceeds ten million
pesos, the prescribed ceiling for the annual operating expenses may
be increased by not more than ten per cent othe excess: Provided,
finally, That in the computation of income, recoveries and accrued
income shall be excluded."
Sec. 2. Section ten (a) of the same Act is hereby amended by
adding another paragraph after section ten (a) which reads as
follows:
"Sec. 10(a-1). The permanent insurance fund hereinabove created
is hereby increased to twenty million pesos for this purpose, the
amount of fifteenmillion pesos is hereby appropriated from the
General Fund."
Sec. 3. Section twelve, subsection (c) of the same Act is hereby
amended to read as follows:
"Sec. 12(c). When the Corporation has determined that an insured
bank is in danger of closing, in order to prevent such closing, the
Corporation, in thediscretion of its Board of Directors, is
authorized to make loans to, or purchase the assets of, or make
deposits in, such insured bank, upon such termsand conditions as
the Board of Directors may prescribe, when in the opinion of the
Board of Directors, the continued operation of such bank is
essentiato provide adequate banking service in the community:
Provided, however, That funds available for this purpose shall be
limited only to the permaneninsurance fund referred to in Section
ten (a) of this Act, additional appropriations thereto, and money
borrowed from the Central Bank in accordance withthe provisions of
Section thirteen of this Act: Provided, further, That funds of the
Corporation accumulated from assessments paid by insured banks
shalnot be available for this purpose nor for the repayment of
loans obtained from the Central Bank for the funding of assistance
to insured banks asprovided in this section. Such loans and
deposits may be in subordination to the rights of depositors and
other creditors."
Sec. 4. This Decree shall take effect immediately.
Done in the City of Manila, this 29th day of January, in the
year of Our Lord, nineteen hundred and seventy-three.
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PRESIDENTIAL DECREE NO. 1094 - AMENDING CERTAIN PROVISIONS OF
R.A. 3591 AS AMENDED ENTITLED "AN ACT ESTABLISHING THEPHILIPPINE
DEPOSIT INSURANCE CORPORATION, DEFINING ITS POWERS AND DUTIES AND
FOR OTHER PURPOSES"
I, FERDINAND E. MARCOS, President of the Philippines, by virtue
of the powers vested in me by the Constitution, hereby decree the
followingamendment to R.A. 3591 as amended:
Section 1. Sec. 2 of R.A. 3591 as amended is hereby further
amended to read as follows:
"Sec. 2 . The powers and functions of the Corporation shall be
vested in a Board of Directors consisting of three (3) members one
of whom shall be theGovernor of the Central Bank of the Republic of
the Philippines to be appointed by the President of the Philippines
with the consent of the Commissionon Appointments. One of the
appointive members shall be the Chairman of the Board of Directors
of the Corporation who shall be appointed on a ful
time basis for a term of six (6) years at an annual compensation
[which shall] AS MAY be fixed FROM TIME TO TIME by the President of
the PhilippinesBUT WHICH SHALL UNTIL AMENDED BY LAW BE FIFTY
THOUSAND (P50,000.00) PESOS PER ANNUM. The other appointive member,
who shalbe appointed for a term of four (4) years and the Governor
of the Central Bank shall each receive a per diem of not exceeding
[fifty pesos (P50.00)]TWO HUNDRED FIFTY PESOS (P250.00) FOR each
day of meeting actually attended by them but in no case shall each
of them receive more, than[five hundred (P500.00] ONE THOUSAND
PESOS (P1,000.00) a month. In the event of vacancy in the office of
the Governor of the Central Bank of thePhilippines, and pending the
appointment of his successor or during the absence of the Governor,
the Acting Governor of the Central Bank of thePhilippines shall act
as member of the Board of Directors. In the event of a vacancy in
the Office of the Chairman of the Board of Directors and pendingthe
appointment of his successor, the Governor of the Central Bank of
the Philippines shall act as Chairman. The members of the Board of
Directorsshall be ineligible during the time they are in office and
for a period of two years thereafter to hold office or employment
in any insured bank, except thathis restriction shall not apply to
any member who has served the full term for which he was appointed.
No member of the Board of Directors shall be anofficer or director
of any insured bank, and before entering upon his duties as member
of the Board of Directors he shall certify under oath that he
hascomplied with this requirement and such certification shall be
filed with the Secretary of the Board of Directors. Any vacancy in
the Board created by thedeath, resignation, or removal of an
appointive member shall be filled by the appointment of a new
member to complete the unexpired period of the termof the member
concerned.
Sec. 2. All laws, decrees, orders, rules and regulations
inconsistent herewith are hereby repealed or amended
accordingly.
Sec. 3. This decree shall take effect immediately.
DONE in the City of Manila, this 18th of February, in the year
of Our Lord, nineteen hundred and seventy-seven.
PRESIDENTIAL DECREE No. 1451
AMENDING REPUBLIC ACT NUMBERED THREE THOUSAND FIVE HUNDRED
NINETY-ONE, AS AMENDED, ENTITLED "AN ACTESTABLISHING THE PHILIPPINE
DEPOSIT INSURANCE CORPORATION, DEFINING ITS POWERS AND DUTIES AND
FOR OTHER PURPOSES"
WHEREAS, the deposit insurance scheme has been adopted to
generate public faith and confidence in the banking system and the
Philippine DeposiInsurance Corporation has been established to
serve as the implementing agency of the Government;
WHEREAS, the Government is currently engaged in the institution
of vital reforms in the banking system to enable it to play a more
effective role in thesocio-economic development of the country;
WHEREAS, as a means of encouraging the accumulation of more
deposits in order to contribute to the socio-economic progress of
the country, it is
imperative that protection of deposits in banks be enhanced;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the
Constitution, do herebyorder and decree the amendment of Republic
Act No. 3591, as amended, as follows:
Section 1. Section three (g) of Republic Act Numbered Three
Thousand Five Hundred Ninety-One, as amended, is hereby amended to
read as follows:
"Sec. 3. (g) The term "insured deposit" means the net amount due
to any depositor for deposits in an insured bank (after deducting
offsets) less anypart thereof which is in excess of (P15,000.00.
Such net amount shall be determined according to such regulations
as the Board of Directors mayprescribe and in determining the
amount due to any depositor there shall be added together all
deposits in the bank maintained in the same capacity andthe same
right for his benefit either in his own name or in the name of
others."
Section 2. Section six (i) of the same Act is hereby amended to
read as follows:
"Sec. 6. (i) Trust funds held by an insured bank in a fiduciary
capacity whether held in trust or deposited in any other department
or in another bankshall be insured like other forms of deposits, in
an amount not to exceed (P15,000.00 for each trust estate, and when
deposit ed by the fiduciary bank inanother bank such trust funds
shall be similarly insured to the fiduciary bank according to the
trust estates represented. Notwithstanding any other
provision of this Act, such insurance shall be separate from and
additional to that covering other deposits of the owners of such
trust funds or thebeneficiaries of such trust estates: Provided,
That where the fiduciary bank deposits any of such trust funds in
other insured banks, the amount so heldby other insured banks on
deposit shall not for the purpose of any certified statement
required under subsections (b) and (c) of this section beconsidered
to be a deposit liability of the fiduciary bank, but shall be
considered to be a deposit liability of the bank in which such
funds are so depositedby such fiduciary bank. The Board of
Directors shall have the power by regulation to prescribe the
manner of reporting and of depositing such trustfunds."
Section 3. Section ten (a) and (a-1) of the same Act is hereby
amended by deleting and adding the following provisions to read as
follows:
"Sec. 10(a) A permanent insurance fund in the amount of
P5,000,000 to be appropriated from the General Fund, is hereby
created to be usedby the Corporation to carry out the purposes of
this Act.
(a-1) The permanent insurance fund hereinabove created is hereby
increased to twenty million pesos and for this purpose, the amount
of fifteenmillion pesos is hereby appropriated from the General
Fund: Provided, That the maximum amount of the insured deposit of
any depositor is herebyincreased to P15,000.00."
