SECTIONS 4-6
SECTION 4
PRESIDENT OF THE CORPORATION
COMPENSATION, POWERS AND DUTIES
PRESIDENT OF THE CORPORATION
-CEO
-Vice Chairman of its Board of Directors
-salary fixed by the President of the Philippines upon the
recommendation of Governance Commission for GOCCs
POWER AND DUTIES OF THE PRESIDENT
OF THE CORPORATION
Prepare the agenda for the meeting of the Board and to submit for
the consideration of the Board the policies and measures which he
believes to be necessary to carry out the purposes and provisions of
this Act.
To execute and administer the policies and measures approved by the
board
direct and supervise the operations and internal administration of
the corporation in accordance with the policies established by the
board.
POWER AND DUTIES OF THE PRESIDENT
OF THE CORPORATION
To represent the Corporation in all dealings with other
offices, agencies and instrumentalities of the government
and with all other persons or entities, public or private,
whether domestic, foreign or international
To authorize, with his signature, upon prior authority of the
board, contracts entered into by the corporation and other
documents of the corporation
POWER AND DUTIES OF THE PRESIDENT
OF THE CORPORATION
To represent the Corporation, either personally or through
counsel, as may be authorized by the PDIC board, in any
legal proceeding or action.
To delegate, with prior approval of the Board, his power to
represent the Corporation, as provided in subsections (d)
and (f), to other officers of the Corporation
To exercise such other powers as may be vested in him by
the Board.
SECTION 5
DEFINITION OF TERMS
DEFINITION OF TERMS
Asset Deposit
Asset Distribution Plan Disputed Claim
BOD Insured Bank
Bank Insured Deposit
Creditor Liquidation
Liquidation Court
DEFINITION OF TERMS
Payout Residual Asset
Petition for Assistance in Resolution
the liquidation of a closed
bank Risk-based Assessment System
Purchase of Assets and Statement of Affairs
Assumption of Liabilities Surplus dividends
Receiver
Takeover
records
DEFINITION OF TERMS
Transfer Deposit
Trust Fund
Valid Claim
Winding Up
SECTION 6
DEPOSIT INSURANCE COVERAGE
DEPOSIT INSURANCE COVERAGE
Bank is determined to be CAPITAL DEFICIENT, the
corporation may conduct an INSURANCE RISK EVALUATION
on the bank.
FMV of the Assets and Liabilities
Risk Classification
Possible Resolution Modes
SECTIONS 16-18
SECTION 16
CONVENTIONAL LIQUIDATION
ASSET MANAGEMENT AND CONVERSION
The assets gathered by the receiver shall be evaluated and
verified as to their existence, ownership, condition, and
other factors to determine their realizable value
The conversion of the assets of the closed bank shall be
carried out in a fair and transparent manner in accordance
with the rules and procedures as may be determined by the
receiver
ASSET MANAGEMENT AND CONVERSION
The receiver shall have the authority to:
Represent the closed bank before the Land Registration Authority (LRA),
the Bureau of Lands, the Register of Deeds, the Land Transportation Office
(LTO), the Assessor’s Office or other appropriate office of the local
government unit, the Securities and Exchange Commission (SEC), or such
other similar government agencies or private entities in:
Verifying the authenticity of ownership documents;
Registering the interest of the closed bank on a specific property;
Consolidating ownership over an asset of the closed bank;
Performing other related activites
ASSET MANAGEMENT AND CONVERSION
The receiver shall have the authority to:
Conduct a physical or ocular inspection of the properties
to determine their existence and present condition
Determine the disposal price of assets
Dispose real/personal properties of the closed bank
through bidding, negotiated sale or any other mode
Engage 3rd parties to assist in the liquidation
ASSET MANAGEMENT AND CONVERSION
Rules on management and/or conversion by the receiver of the
assets of the closed bank:
Notification of the closure, the LRA, SEC etc., shall not allow
any transaction affecting the assets of the closed bank
without the consent of the receiver
Turn over of custody of assets and records to the receiver
Such person/ entity in custody of assets and records shall
not allow transaction involving such assets and records
unless otherwise directed by the receiver
PETITION FOR ASSISTANCE IN THE
LIQUIDATION OF A CLOSED BANK
petition for assistance in the liquidation is a special
proceeding for the liquidation of a closed bank, and includes
the declaration of the concomitant right of its creditors and
the order of payment of their valid claims in the disposition
of its assets.
The petition shall be filed in the RTC which has jurisdiction
over the principal office of the closed bank or the principal
office of the receiver, at the option of the latter
PETITION FOR ASSISTANCE IN THE
LIQUIDATION OF A CLOSED BANK
Filed within a reasonable period from receipt of the
Monetary Board Resolution placing the bank under
liquidation.
60 days
PETITION FOR ASSISTANCE IN THE
LIQUIDATION OF A CLOSED BANK
Contingent Claim
Termination of the petition for assistance in the liquidation
of a closed bank
Submission of the final report on the implementation of
the approved final asset distribution plan to the Monetary
Board and SEC after the expiration of the winding up period.
WINDING UP
Creditor
payment of
principal obligation
and surplus dividends 6 Months
Stockholder
Residual Asset
WINDING UP
AFTER
6 Months
turned over to
Bureau of Treasury
WINDING UP
WITHIN 6 MONTHS
KEEP ALL THE
RECORDS
SECTION 17
PERMANENT INSURANCE FUND
PERMANENT INSURANCE FUND
Three Billion Pesos (P3,000,000,000.00)
DIF shall be the capital account of the corporation and shall
consist of the following:
PIF
Assessment Collection
Reserve for Insurance and Financial losses
RE
SECTION 18
DIVIDEND DECLARATION
DIVIDEND DECLARATION
Maintain the DIF at the target level set by the PDIC Board of
Directors
the Corporation shall remit dividends to the national
government only if the target DIF level for the applicable
year has been reached.
all assessment collections shall not be considered as
income. The dividend rate shall be at least fifty percent
(50%) of the income from other sources only
