In re Rural Bank of Mabinay (Negros Oriental), Inc.

May 12, 2008 SEC EN BANC CASE NO. 07-07-0114 IN THE MATTER OF RURAL BANK OF MABINAY (NEGROS ORIENTAL), INC. SEC REG. NO. 72290 , petitioner . FOR : Setting Aside of the Order of Revocation of the Certificate of Registration O R D E R Petitioner RURAL BANK OF MABINAY (NEGROS ORIENTAL), INC. is a stock corporation registered with the Commission on February 25, 1977, the principal purpose of which is "to carry and engage in the business of extending rural credit to small farmers and tenants and to deserving rural industries or enterprises, to have and exercise all authority and powers, to do and perform all acts, and to transact all business which may legally be had or done by rural banks organized under and in accordance with the Rural Banks Act, as it exists or may be amended, and to do all other things incident thereto and necessary and proper in connection with said purpose within such territory. . ." 1 Its principal office address is located at Mabinay, Negros Oriental. On August 11, 2003, petitioner's Certificate of Registration No. 72290 was revoked by virtue of SEC Order dated July 8, 2003 which was published on July 11, 2003 for non-compliance with the Commission's reportorial requirements. Petitioner now prays for setting aside of the said order of revocation based on the following grounds: a) The present officers were not aware that there are reports to be submitted to this Honorable Commission; DHIaTS b) The present officers were not aware of such reportorial requirements by the Honorable Commission, having acquired the bank only on April 2007; c) Petitioner has not received any notice of Revocation from this Honorable Commission prior to said revocation on May 27, 2003; d) Should the suspension not be lifted, the bank will be forced to terminate employees, in effect creating chaos in the bank's operation, massive withdrawals of our depositors' money and the financial needs of our clients will not be served in the countryside; e) Non-lifting of suspension will be most disadvantageous to parties concerned. 2 In support of its petition, petitioner submitted its 2007 General Information Sheet and its Audited Financial Statements for Year Ended 2006 together with the following as proof of its operation: IcDCaS a) 2007 Mayor's Permit issued by the City of Pasig; b) 2006 Income Tax Return; Petitioner further alleges that it has no intention to violate the law and any SEC rules and regulations and henceforth, commits to comply with the rules and regulations of the Commission regarding the submission of reports. It has also committed to pay immediately any penalties and fees due by reason of its failure to comply with the Commission's reportorial requirements. In fact, it paid such penalties and fees in full as evidenced by Official Receipt No. 5476879, dated JUNE 7, 2007 amounting to TWO HUNDRED FORTY-SEVEN THOUSAND FIVE HUNDRED PESOS (P247,500.00). However, it is to be noted that the required photocopy of the Stock and Transfer Book is absent from the documents submitted to the Commission. Please be informed that petitions for lifting orders of revocation should be accompanied by a photocopy of entries made in the Stock and Transfer Book which shall be certified as correct by the Corporate Secretary. As such, Petitioner is required to submit said requirement 30 days after receipt of this Order. Failure to do so shall cause the recall of this Order. HCEaDI WHEREFORE, finding the petition meritorious, the Order of the Commission dated July 8, 2003 revoking the Certificate of Registration of RURAL BANK OF MABINAY (NEGROS ORIENTAL), INC. is hereby SET ASIDE. Petitioner is hereby directed to submit within 30 days from receipt of this Order its Stock and Transfer Book certified correct by the Corporate Secretary and its Mayor's Permit for 2008 . Let a copy of this Order be furnished the Company Registration and Monitoring Department and the Economic Research and Information Department of this Commission for their appropriate action. cSDIHT SO ORDERED. Mandaluyong City, May 12, 2008. (SGD.) FE B. BARIN Chairperson on sick leave MA. JUANITA E. CUETO Commissioner (SGD.) JESUS ENRIQUE G. MARTINEZ Commissioner (SGD.) RAUL J. PALABRICA Commissioner (SGD.) THADDEUS E. VENTURANZA Commissioner Footnotes 1. Articles of Incorporation of the Rural Bank of Mabinay (Negros Oriental), Inc.. HIACac 2. Petition to Lift Order of Revocation.