BANKING LAWS

Question 1

1. XYZ Corporation obtained a loan from ABC Bank secured by a real estate mortgage on itsland. XYZ Corporation defaulted payment , and so the mortgage was foreclosed and the land was sold at public auction. The redemption period of XYZ Corporation is:
   a. Within three (3) months from the date of the auction sale.
   b. Within one (1) year from the date of the auction sale.
   c. Until the registration of the certificate of foreclosure sale with the Register of Deeds, but
   in no case exceeding three (3) months.
   d. Until the registration of the certificate of foreclosure sale with the Register of Deeds, but in no case exceeding one(1) year.

Answer 1

b. Within one (1) year from the date of the auction sale.

Question 2

2. BCD Banking Corporation was able to acquire a house and lot that was mortgaged to it in good faith by way of security for a loan. As a general rule, the bank is required by law to
   dispose the real property within period of:
   a. Six(6) months
   b. One(1) year
   c. Five (5) years
   d. Ten (10) years

Answer 2

c. Five (5) years

Question 3

3. Under R.A. No 1405, otherwise known as the Bank Secrecy Law, which of the following acts of a bank official is covered by the Bank Secrecy Law?
   a. Disclosing the amount of deposit of a judgment debtor to the court sheriff who is
   executing a garnishment order against him.
   b. Disclosing the name of the drawer of a check to the payee.
   c. Disclosing the amount of deposit of a taxpayer to a duty authorized BIR officer who is examining his income tax liability.
   d. Disclosing the amount of deposit exceeding P500,000 in one (1) banking day to the Anti-
   Money Laundering Council.

Answer 3

c. Disclosing the amount of deposit of a taxpayer to a duty authorized BIR officer who is examining his income tax liability.

Question 4

4. X, a government employee, purchased Land Bank bonds with a total value of P1,000,000 and receives bi-annual interest income from his investment. Under the Bank Secrecy Law , X’s investment may be inquired into without need of a court order by the:
   a. Public Prosecutor handling an estafa case against X.
   b. BIR officer auditing the value-added taxes of X.
   c. Credit investigator of a lending institution where X applied for a loan.
   d. None of the foregoing.

Answer 4

d. None of the foregoing.

Question 5

5. X maintained the following deposit at CDP Bank:
   P600,000 – saving deposit in the name of “X and /Y”
   200,000 – time deposit in the name of “XYZ Partnership”
   300,000 – current account in the name of “X”
   ABC Bank was liquidated by the Bangko Sentral ng Pilipinas due to financial reverses.
   How much can X personally recover from the Philippine Deposit Insurance Corporation
   (PDIC)?
   a. P900,000
   b. 600,000
   c. 500,000
   d. 300,000

Answer 5

c. 500,000

Question 6

6. R.A. Act No. 3765, otherwise known as the Truth in Lending Act, applies to:
   a. Pawnshops
   b. Small-loan money lenders
   c. Both (a) and (b)
   d. Neither (a)nor (b)

Answer 6

c. Both (a) and (b)

Question 7

7. Under R.A. No. 6426, otherwise known as the Foreign Currency Deposit Act, which of the following statements relative foreign currency deposits is false??
   a. The foreign currency deposits maintained abroad by Filipino citizens are not covered by
   the provisions of the Act.
   b. Depositary banks which have been qualified by the Monetary Board to function under the
   expanded foreign currency deposit system are exempt in maintaining the fifteen percent
   (15%) foreign currency for their liabilities in the form of foreign currency deposit with the Bangko Sentral.
   c. Foreign currency deposits are of absolutely confidential nature, except upon the written permission of the depositor.
   d. Foreign currency deposits are subject to attachment, garnishment or any other order or process of the court.

Answer 7

d. Foreign currency deposits are subject to attachment, garnishment or any
other order or process of the court.