8 - UNCLAIMED BALANCES ACT Flashcards
What is the purpose of the Act?
To transfer unclaimed balances held by banks to the Insular Treasury.
Who is required to transfer unclaimed balances?
Banks, trust companies, savings and mortgage banks, mutual building and loan associations, and banking institutions of every kind.
What are “unclaimed balances”?
Credits or deposits of money, bullion, security, or other evidence of indebtedness, with interest, in favor of any person unheard from for ten years or more.
What institutions are included as “banks”?
Banks as defined under Section 16,228 of Act No. 2751 (Revised Administrative Code), whether organized under special charters or not, and pawn broking establishments.
Who prepares a statement under oath regarding unclaimed balances?
The managing officers of all banks.
When must banks forward the statement to the Insular Treasurer?
Immediately after the Act takes effect and within January of every odd year.
What information must the statement contain?
Names and last known addresses of depositors; Amount and date of the deposit (and whether in money or security); Date of depositor’s death (if known) or last transaction; Interest due.
How does the Insular Treasurer publish the statement?
Once a week for three consecutive weeks in at least two newspapers of general circulation in the locality (or Manila if none), one English and one Spanish.
What is the penalty for a bank’s failure to publish and submit the statement?
₱100 a month for each month or fraction thereof of default.
What must be included in the summons issued by the clerk of court?
A notice referring to the complaint, directed to all persons (other than named defendants) claiming interest in any deposit mentioned in the complaint.
What is the purpose of the notice attached to the summons?
To require interested parties to appear within sixty days of the first publication and show cause why the deposits should not be deposited with the Insular Treasurer.
What is the significance of the statement of the date of the first publication?
It serves as a public record of the start of legal proceedings.
Who defends actions against a bank for moneys deposited with the Insular Treasurer?
The Attorney-General.
When is a bank relieved of liability for unclaimed balances?
Once they have made a deposit to the Insular Treasurer in accordance with the Act.
Can interested parties participate in an action regarding unclaimed balances?
Yes, any person interested can appear and become a party to the action.
What is the effect of completing publication of the summons and notice?
The court gains full jurisdiction over the deposits and interested parties.
Why does the Insular Treasurer inform the Attorney-General about unclaimed balances?
To ensure the Attorney-General is aware of the necessary actions.
What is the significance of Section 5 of the Act regarding bank liability?
It ensures the bank’s liability for unclaimed balances is transferred to the government.
Who pays the cost of publication?
The Treasury Bureau, reimbursed from the escheated fund.
When did the Act take effect?
January 1st, 1933.
How is the statement forwarded?
Under oath.
How should the statement be arranged?
Alphabetically, according to depositors’ names.
Who receives the summons and notice?
The president, cashier, or managing officer of each defendant bank.
Which court has jurisdiction?
The Court of First Instance of the province where the bank is located.
Why publish in two newspapers?
To inform the public and all interested parties.
Can interested parties claim interest after publication?
Yes.
Why must the Attorney-General inform the Insular Treasurer?
To ensure the Insular Treasurer can take necessary actions and publish statements.
What is the effect of the court’s jurisdiction?
The court can hear and determine the issues and render judgment.
Who defends the bank against actions for deposited moneys?
The Attorney-General.
When is a bank still liable for unclaimed balances?
For any balances not covered under the Act’s provisions.
What are the requirements for the bank’s statement?
Under oath, contains required information, alphabetically arranged.
How is the Insular Treasurer reimbursed for publication costs?
From the escheated fund.
What is the purpose of requiring the Attorney-General to commence an action in the name of the People of the Philippine Islands?
To ensure the action is brought in the proper government name.
Who gains jurisdiction after publication and service of summons?
The Court of First Instance.
Can a bank that deposited funds still be liable?
No, not for funds deposited according to the act.
How long is a bank liable for non-compliance?
For each month or part of a month the default continues.
Who receives the summons and notice?
Bank officers and through publication.
Why publish the statement and summons?
To inform the public.
What is the significance of the date of first publication on the summons?
It marks the start of legal proceedings.
What is the effect of the Attorney-General defending the bank?
It relieves the bank of liability.
When can a court gain jurisdiction over unclaimed balances?
After publication and service of summons.
Who ensures the Attorney-General is informed?
The Insular Treasurer.
When can a court hear issues regarding unclaimed balances?
After gaining jurisdiction.
Who has jurisdiction over the deposits and interested parties?
The Court of First Instance.
Why publish the bank’s statement?
To inform the public.
What is the significance of hearing all parties?
To ensure fairness.
Who pays the Attorney-General for defending the bank?
The Government of the Philippine Islands.
Why must the Attorney-General inform the Insular Treasurer?
To enable necessary action and publication.
Who pays for publication?
The Treasury Bureau, reimbursed from escheated funds.
What is the effect of the Act taking effect?
The provisions become enforceable.
