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Unclaimed Balances Law: (Republic Act 3936 As Amended by Presidential Decree No. 679)

The Unclaimed Balances Law requires banks, building and loan associations, and trust corporations to deposit unclaimed balances that have remained inactive for 10 years or more with the Treasurer of the Philippines. This includes deposits belonging to persons who are known to be dead or who have not made transactions on their accounts in over 10 years. The institutions must submit sworn statements every odd year listing names, amounts, and details of unclaimed balances. Failure to file results in monthly penalties. The Solicitor General may then pursue legal action to claim the balances for the government.

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Jornel Mandia
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604 views2 pages

Unclaimed Balances Law: (Republic Act 3936 As Amended by Presidential Decree No. 679)

The Unclaimed Balances Law requires banks, building and loan associations, and trust corporations to deposit unclaimed balances that have remained inactive for 10 years or more with the Treasurer of the Philippines. This includes deposits belonging to persons who are known to be dead or who have not made transactions on their accounts in over 10 years. The institutions must submit sworn statements every odd year listing names, amounts, and details of unclaimed balances. Failure to file results in monthly penalties. The Solicitor General may then pursue legal action to claim the balances for the government.

Uploaded by

Jornel Mandia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
  • Unclaimed Balances Law

Unclaimed Balances Law

(Republic Act 3936 as amended by Presidential Decree No. 679)

The act requires that unclaimed balances, with the increase and proceeds thereof, from
banks, buildings and loan associations and trust corporations 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.

Elements of Unclaimed Balances

1. Includes credits or deposits of:

a) Money;

b) Bullion;

c) Security or other evidence of indebtedness of any kind;

d) Interest

2. The credit or deposit is made with the banks, buildings & loan associations, and trust
corporations which shall refer to institutions defined in General Banking Act (RA 337 as
amended)

3. The depositor credit is in favor of a person:

a) Who is known to be dead; or

b) Who have not made further deposits or withdrawals during the preceding 10
years or more

Sworn Statement

Banks, building and loan associations and trust corporations shall forward a sworn statement
displaying the names of persons, in alphabetical order, who have unclaimed balances to the
Treasurer of the Philippines

The sworn statement shall include:

a) The names and last known place of residence or post office addresses of the
persons in whose favor such unclaimed balances stand;

b) The amount and the date of the outstanding unclaimed balance and whether
the same is in money or in security, and if the latter, the nature of the same;
c) The date when the person in whose favor the unclaimed balance stands died,
if known, or the date when he made his last deposit or withdrawal; and

d) The interest due on such unclaimed balance, if any, and the amount thereof.

When to file the sworn statement?

The statement should be file within the month of January of every odd year

Penalty for failure of filing.

A sum of five hundred pesos a month for each month or fraction thereof during which such default
shall continue shall be paid to the Government.

Solicitor General

● Shall be informed by the Treasurer of the Philippines about the existence of unclaimed
balances
● Once informed, shall commence an action or actions in the name of the People of the
Republic of the Philippines in the Court of First Instance of the province or city where the
bank, building and loan association or trust corporation is located.
● Shall defend the institutions that made deposits with the Treasurer of the Philippines in
conformity with the provisions of the act if any action was brought to them.

Note:

Any bank, building and loan association or trust corporation which shall make any deposit
with the Treasurer of the Philippines in conformity with the provisions of this Act shall not thereafter
be liable to any person for the same.

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