Prohibition Against Allowing Staggered Payments in Favor of Surety Companies
The OCA Circular No. 142-03, issued on October 10, 2003, mandates that staggered payment arrangements for surety companies with outstanding obligations to trial courts are prohibited. This decision comes in response to the consistent failure of these companies to settle their debts, even when staggered payments were permitted. Existing orders for staggered payments on forfeited or confiscated bonds issued before October 16, 2003, remain valid; however, any default will render the entire obligation due immediately. Compliance with this directive is required by all relevant court officials.
Law Information
- Reference Number
- OCA Circular No. 142-03
- Date Enacted
- Category
- Supreme Court Issuances
- Subcategory
- Office of the Court Administrator Circulars
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
October 10, 2003
OCA CIRCULAR NO. 142-03
| TO | : | All Executive Judges, Presiding Judges, Clerks of Court and Branch Clerks of Court in the Regional Trial Courts, Metropolitan Trial Courts, Municipal Trial Courts in Cities, Municipal Trial Courts, Municipal Circuit Trial Courts Including the Shari'a District Courts and Shari'a Circuit Courts |
| SUBJECT | : | Prohibition Against Allowing Staggered Payments in Favor of Surety Companies |
Most surety companies with outstanding obligations with the trial courts have consistently failed to settle their obligations. Notwithstanding the staggered payment approved by the courts, surety companies remain to be delinquent in the payment of their liabilities. Henceforth, staggered payments on these obligations shall no longer be allowed. EDCTIa
Orders allowing staggered payments on forfeited/confiscated bonds' issued before 16 October 2003, shall remain to be effective; provided that any default in payment shall render the whole obligation due and demandable and the liability shall be paid in full.
For strict compliance.
(SGD.) PRESBITERO J. VELASCO, JR.Court Administrator
Cite This Law
Prohibition Against Allowing Staggered Payments in Favor of Surety Companies, OCA Circular No. 142-03, Oct 10, 2003 (Philippines)
Prohibition Against Allowing Staggered Payments in Favor of Surety Companies, OCA Circular No. 142-03 (Phil. 2003)
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