Creating a Fund for Depositors of Banks Forbidden to Do Business by the Central Bank
Republic Act No. 5517, enacted on June 21, 1969, establishes a fund to compensate individual depositors of banks that have been prohibited from operating by the Central Bank, with payments capped at P10,000 per depositor. The fund, initially set at P15 million, is sourced from the profits of the Central Bank and aims to cover depositors until the Philippine Deposit Insurance Corporation (PDIC) begins its insurance coverage. The act allows the fund to subrogate the rights of depositors, enabling recovery from the bank's assets if it undergoes liquidation. Once the fund's purpose is fulfilled, any remaining balance will revert to the National Treasury. The PDIC is tasked with implementing the act and is granted access to the records of the affected banks for this purpose.
Quick Answers
- What is Creating a Fund for Depositors of Banks Forbidden to Do Business by the Central Bank about?
- Republic Act No. 5517, enacted on June 21, 1969, establishes a fund to compensate individual depositors of banks that have been prohibited from operating by the Central Bank, with payments capped at P10,000 per depositor. The fund, initially set at P15 million, is sourced from the profits of the Central Bank and aims to cover depositors until the Philippine Deposit Insurance Corporation (PDIC) begins its insurance coverage. The act allows the fund to subrogate the rights of depositors, enabling recovery from the bank's assets if it undergoes liquidation. Once the fund's purpose is fulfilled, any remaining balance will revert to the National Treasury. The PDIC is tasked with implementing the act and is granted access to the records of the affected banks for this purpose.
- What type of law is Republic Act No. 5517?
- Creating a Fund for Depositors of Banks Forbidden to Do Business by the Central Bank (Republic Act No. 5517) is a Philippine Statutes enacted by the Congress of the Philippines.
- When was Creating a Fund for Depositors of Banks Forbidden to Do Business by the Central Bank enacted?
- Creating a Fund for Depositors of Banks Forbidden to Do Business by the Central Bank (Republic Act No. 5517) was enacted on Jun 21, 1969.
- What is the citation for Creating a Fund for Depositors of Banks Forbidden to Do Business by the Central Bank?
- Creating a Fund for Depositors of Banks Forbidden to Do Business by the Central Bank, Republic Act No. 5517, Jun 21, 1969 (Philippines)
Law Information
- Reference Number
- Republic Act No. 5517
- Date Enacted
- Category
- Statutes
- Subcategory
- Republic Acts
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
June 21, 1969
REPUBLIC ACT NO. 5517
AN ACT CREATING A FUND FROM WHICH SHALL BE DISBURSED AMOUNTS NECESSARY TO PAY DEPOSITORS, IN AMOUNTS NOT EXCEEDING TEN THOUSAND (P10,000.00) PER INDIVIDUAL DEPOSITOR, OF BANKS WHICH ARE FORBIDDEN TO DO BUSINESS BY THE CENTRAL BANK PURSUANT TO SECTION TWENTY-NINE OF REPUBLIC ACT NUMBERED TWO HUNDRED SIXTY-FIVE
SECTION 1. There is hereby created a Fund from which shall be disbursed amounts necessary to pay depositors, in amounts not exceeding Ten Thousand pesos (P10,000.00) per individual depositor of the following banks:
(a) A bank which has been forbidden to do business by the Central Bank pursuant to Republic Act No. 265; and casia
(b) Any bank which, between the effective date of this Act and the date the Philippine Deposit Insurance Corporation commence the grant of insurance coverage to banks pursuant to Republic Act No. 3591, may be forbidden to do business by the Central Bank pursuant to Section 29 of Republic Act 265.
The Monetary Board, upon recommendation of the Philippine Deposit Insurance Corporation shall set aside out of the profits of the Central Bank the sum of P15 million, or such amount as may be necessary, to be placed into the funds hereinbefore created to carry out the purposes of this Act, the provisions of Sec. 41 of R.A. No. 265 notwithstanding.
SECTION 2. The fund shall be subrogated in place of the depositors to the extent of the amounts disbursed from the Fund and paid to the depositors. The amounts disbursed from the fund shall be repaid to the extent of the distributions allocable thereto out of the assets of the bank concerned, in the event the said bank is liquidated pursuant to law.
SECTION 3. As soon as the purpose of this Act shall have been accomplished as determined by the Philippine Deposit Insurance Corporation, the balance of the Fund shall be reverted to the National Treasury.
SECTION 4. The books and records of the banks concerned shall be open to the Philippine Deposit Insurance Corporation, its officers and authorized personnel, and the said corporation is hereby authorized to perform any and all acts necessary for the implementation of this Act. The Philippine Deposit Insurance Corporation shall promulgate the necessary rules and regulations to implement this Act.
SECTION 5. This Act shall take effect upon its approval.
Approved: June 21, 1969
Published in the Official Gazette, Vol. 65, No. 44, p. 11990 on November 10, 1969
Cite This Law
Creating a Fund for Depositors of Banks Forbidden to Do Business by the Central Bank, Republic Act No. 5517, Jun 21, 1969 (Philippines)
Creating a Fund for Depositors of Banks Forbidden to Do Business by the Central Bank, Republic Act No. 5517 (Phil. 1969)
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