RFBT - PDIC LAW Flashcards
What is an insured deposit?
An insured deposit is the amount due to any BONA FIDE depositor for LEGITIMATE deposits in an insured bank net of any obligation of the depositor to the insured bank as of date of closure, but NOT TO EXCEED PHP 500,000.
What are not covered by insurable deposit?
- ) Investments such as BONDS AND SECURITIES, TRUST ACCOUNTS, and other SIMILAR INSTRUMENTS.
- ) Deposit accounts or transactions which are UNFUNDED, FICTITIOUS, OR FRAUDULENT.
- ) Deposit accounts or transactions constituting, and or emanating from UNSAFE AND UNSOUND BANKING PRACTICES as determined by PDIC in consultation with BSP.
- ) Deposits that are determined to be the PROCEEDS OF AN UNLAWFUL ACTIVITY.
What are Single accounts?
Singe accounts are accounts MAINTAINED SOLELY BY A DEPOSITOR, which also includes IN-TRUST-FOR and BY-ACCOUNTS.
What is a Joint account?
A Joint Account is an account held jointly by two or more persons, either natural/juridical.
What are the requirements for claiming insured deposits?
- ) Original evidence of deposits such as PASSBOOK, CERTIFICATE OF TIME DEPOSIT, BANK STATEMENT, UNUSED CHECKS, AND ATM CARDS.
- ) Original copy of TWO VALID PHOTO-BEARING IDS with CLEAR SIGNATURE OF THE DEPOSITOR.
- ) If DEPOSITOR IS BELOW 18, PHOTOCOPY OF BIRTH OF CERTIFICATE FROM NSO or DULY CERTIFIED COPY FROM THE LOCAL CIVIL REGISTRAR and VALID IDS of the parent.
- ) Original copy of a NOTARIZED SPECIAL POWER OF ATTORNEY for claimants who are not the signatories in the bank records. In the case of minor depositors, SPA must be executed by the parent.
Where should the requirements for claiming insured deposits be submitted?
1.) If submitting personally”
PDIC representatives at Claims Settlement Operations or to PDIC Public Assistance Center.
2.) If filing through Mail
The accomplished and notarized Claim form and requirements to The claims processing department of PDIC.
If the depositor’s account in a closed bank is more than PHP 500,000, what happens to the excess of the maximum amount of insured deposit?
- ) If the closed bank is NOT REHABILITATED OR TAKEN OVER BY ANOTHER BANK, the excess can still be claimed upon the FINAL LIQUIDATION OF THE REMAINING ASSETS OF THE CLOSED BANK.
- ) The claim may be FILED WITH THE LIQUIDATOR OF THE CLOSED BANK but payment of said claim will DEPEND ON THE BANK’S AVAILABLE ASSETS TO SETTLE ITS PREFERRED CLAIMS.
What happens when the depositor of a closed bank fails to file his claim within the 24-month period?
All rights of the depositor with respect to the insured deposit shall no longer be honored. But he may still make a claim against the assets of the closed bank.
What is the Philippine Deposit Insurance Corporation (PDIC)?
PDIC is a government instrumentality created in 1963 by virtue of Republic Act 3591 to insure the deposits of all banks which are entitled to the benefits of insurance. The latest amendments to RA 3591 are contained in RA 10846 signed into law on May 23, 2016. RA 10846 empowered PDIC with stronger authorities to protect the depositing public and promote financial stability. The new law also includes important provisions to ensure that the PDIC remains financially and institutionally strong to fulfill its mandate under its Charter.
The PDIC now has the authority to help depositors have quicker access to their insured deposits should their bank close; resolve problem banks while still open; hasten the liquidation process for closed banks; and mete out stiffer sanctions and penalties against those who engage in unsafe and unsound banking practices.
The PDIC is an attached agency of?
The PDIC is an attached agency of the Department of Finance.
What are the functions of PDIC?
- Deposit Insurer
- Co-regulator of Banks
- Receiver and Liquidator of Closed Banks
Are deposits maintained in branches and subsidiaries of foreign banks operating in the Philippines insured by the PDIC?
Yes, the PDIC Charter provides that the deposits in branches and subsidiaries of foreign banks licensed by the Bangko Sentral ng Pilipinas (BSP) to perform banking functions in the Philippines are insured by the PDIC.
Are deposits maintained in Philippine banks with branches outside the Philippines insured by the PDIC?
The PDIC Charter provides that a Philippine bank MAY ELECT to insure with the PDIC its deposits in branches outside the Philippines.
What specific risks to a bank does PDIC cover?
PDIC covers only the RISK OF BANK CLOSURE ORDERED BY THE MONETARY BOARD. Thus, bank losses due to theft, fire, closure by reason of strike or existence of public disorder, revolution or civil war, are not covered by PDIC.
Shall the depositor pay any insurance premium to PDIC?
No. Insurance premium is paid by the banks, not by the depositors. The bank is assessed 1/5 of 1% per annum OF THE ASSESSMENT BASE OF THE BANK.
