Unclaimed Balances Law Flashcards
What is the relevant law on this topic?
Act No. 3936, as amended by Presidential Decree No. 679
What is the unclaimed balances law’s purpose?
It requires banks, trust corporations, and building and loans associations, to transfer unclaimed balances held by them to the Treasurer of the Philippines and for other purposes.
What is the meaning of “unclaimed balances”?
Unclaimed balances shall include credits or deposits of the following:
- money
- bullion
- security
- other evidence of indebtedness of any kind, and interest thereon
with banks, buildings and loan associations, and trust corporations, in favor of the following:
- any person known to be dead
- any person who has not made further deposits or withdrawals during the preceding 10 years or more
What will happen to unclaimed balances?
Unclaimed balances, together with the increase and proceeds thereof, shall be deposited with the Treasurer of the Philippines to the credit of the Government of the Republic of the Philippines to be used as the National Assembly may direct after reclassification and procedures provided by law.
The judicial process in which the state, by virtue of its sovereignty, steps in and claims abandoned, left vacant, or unclaimed property, without there being an interested person having a legal claim thereto.
Escheat proceeding
What happens if interested parties have come forward and lain claim to the unclaimed balance?
If interested parties have come forward and lain claim to the property, the courts shall determine whether the credit or deposit should pass to the claimants or be forfeited in favor of the state.
What is the duty of the covered institution on unclaimed balances?
all banks, building and loan associations, and trust corporations shall forward to the Treasurer of the Philippines a statement, under oath, of their respective managing officers, of all credits and deposits held by them in favor of persons known to be dead, or who have not made further deposits or withdrawals during the preceding ten years or more.
What is the duty of the Treasurer of the Philippines?
It shall be the duty of the Treasurer of the Philippines to inform the Solicitor General from time to time the existence of unclaimed balances held by banks, building and loan associations, and trust corporations.
