1. What is the purpose of PDIC law? 4.

Define
 RA 3591: An Act Establishing the Philippine Deposit Insurance a. Deposit
Corporation, Defining its Powers and Duties and for other Purposes  Deposit means the unpaid balance of money or its equivalent received
 The purpose of the PDIC law is to create and to establish the PDIC by a bank in the usual course of business and for which it has given or is
(Philippine Deposit Insurance Corporation) defining its powers and duties obliged to give credit to a commercial, checking, savings, time or thrift
and for other purposes. (June 22, 1963) account, evidenced by its certificate of deposit, or other evidence of
Amendments: deposit.
 RA 7400: An Act further amending RA 3591, as amended, otherwise known o issued in accordance with Bangko Sentral ng Pilipinas rules and
as the charter of the PDIC and for other purposes (1991) regulations and other applicable laws, together with such other
 RA 9302: An Act further amending RA 3591, as amended, otherwise known obligations of a bank, which, consistent with banking usage and
as the charter of the PDIC and for other purposes (2003) practices, the Board of Directors shall determine and prescribe
 RA 9576: an act increasing the maximum deposit insurance coverage, and in by regulations to be deposit liabilities of the Bank.
connection therewith, to strengthen the regulatory and administrative  Provided, That any obligation of a bank which is payable at the office of the
authority, and financial capability of the PDIC, amending for this purpose RA bank located outside of the Philippines shall not be a deposit for any of the
3591, as amended, otherwise known as the charter of the PDIC and for other purposes of this Act or not included as part of the total deposits or of the
purposes (2003) insured deposit (NOT PART OF INSURED DEPOSITS):
 Provided, further, That subject to the approval of the BOD, any insured bank
2. What are the main functions of PDIC? which is incorporated under the laws of the Philippines which maintains a
 The main functions of PDIC or the purpose of the corporation are branch outside the Philippines may elect to include for insurance its
(1) deposit insurer – to insure the deposits of all banks- deposit obligation payable only at such branch
(2) co-regulator of banks (examination and resolution); and o Contract of deposit:(for safe-keeping) to give money to the bank
(3) receiver and liquidator of distressed (closed) banks. and the bank will give back the same amount of money
o Debtor (bank), Creditor (depositor)
3. What are the public policy objectives of PDIC?
 Depositor Protection b. Insured Deposit:
o to promote and safeguard the interests of the depositing public by:  Insured Deposit refers to the amount due to any legitimate depositor,
 providing insurance coverage on all insured deposits; and bona fide (good faith) for deposits in an insured bank net of any obligation of
 helping maintain a sound and stable banking system the depositor to the insured bank as of the date of closure, but not to
 Financial Stability exceed the Maximum Deposit Insurance Coverage
o The public policy objectives of PDIC is to strengthen the mandatory o net amount: determined according to such regulations as the Board
deposit insurance coverage system of Directors may prescribe
 to generate, preserve, maintain faith and confidence in the o determining the amount due to any depositor: there shall be
country’s banking system; and added together all deposits in the bank maintained in the same
 protect it from illegal schemes and machinations capacity and the same right for his benefit or in his own name or in
 Compulsory: all deposits the names of others
 o foreign currency denominated and local currency denominated  Covered by PDIC by CURRENCY
5. What is the maximum deposit insurance coverage? o Foreign
 The Maximum Deposit Insurance Coverage (MDIC) is Php 500,000 per o Local
depositor per bank (valid deposit) effective June 1, 2009. o
 For single and joint accounts of the same depositor  PDIC deposit insurance covers all types of bank deposits in banks
o Single accounts and Joint accounts are insured separately whether denominated in local or foreign currencies.
o The aggregate MDIC is Php 1,000,000 o all commercial banks, savings and mortgage banks, rural banks,
o Php 500,000 from single accounts & Php 500,000 from joint accounts private development banks, cooperative banks, savings and loan
 In case of a condition that threatens the monetary and financial stability associations, as well as branches and agencies in the Philippines of
of the banking system that may have systemic consequences (Section foreign banks and all other corporations authorized to perform
22), as determined by the Monetary Board (from BSP) banking functions in the Philippines
o maximum deposit insurance cover may be adjusted in such  For Philippine banks with branches outside the country (RA 9576 - Section 2)
amount, for such a period, and/or for such deposit products o subject to the approval of the Board of Directors, any insured bank,
o PRE-REQUISITES: may be determined by a may elect to include for insurance its deposit obligations payable at
(1) unanimous vote of the Board of Directors such branch
(2) In a meeting called for the purpose and chaired by the Secretary of  Foreign currency deposits (RA 6426, Sec. 9: An act instituting a foreign
Finance (Carlos Dominguez); and currency deposit system in the Philippines, and for other purposes)
(3) subject to the approval of the President of the Philippines   All deposit accounts of a depositor in a closed bank maintained in the same
 Valid Deposits considerations of PDIC: right and capacity shall be added together.
o Recorded in bank records  A joint account shall be insured separately from any individually-owned
o Evidence by inflow of cash deposit account.
o ** deposit in transit accounts: PDIC cannot pay these accounts bcos
no evidence of mentioned above  Membership with PDIC is mandatory for all banks licensed by the BSP to
operate in the Philippines:
6. What are covered by PDIC deposit insurance? o Banks incorporated with SEC/BSP under Philippine laws, such as
commercial banks, savings banks, mortgage banks, stock savings
 Covered by PDIC by TYPE of account and loan associations, development banks, cooperative banks, and
o NOW – (like Allied Bank, acquired PNB who established goodwill) rural banks, domestic branches of foreign banks
o Savings o Banks cannot be a single-person corporation (bcos dako pud
o Deposit minimum capital requirement)… MUST BE A CORPORATION
o Demand/Checking o Banks: have compliance officers for compliance of all rules and
 Covered by PDIC by TYPE of Deposit Account regulations by bank laws and etc
o Examples of Foreign Banks with Domestic branches: HSBC, Citibank
o Single
o Joint
EXCEPTIONS (from RA 9576 – Sec. 2):
o By, ITF, FAO
  The corporation (PDIC) shall not pay deposit insurance for the following  Joint accounts are accounts held under more than one name.
accounts or transactions, whether denominated, documented, recorded or  Regardless of whether the conjunction “and”, “or” or “and/or” is used shall
booked as deposit by the bank: be insured separately from single accounts.
(1) Investment products such as bonds and securities, trust accounts, and
other similar instruments; c. “By”, “ITF” or “FAO” accounts
(2) Deposit accounts or transactions which are unfunded, or that are fictitious  These are also considered as single accounts
or fraudulent;  “By” Alpha by Beta
(3) Deposits accounts or transactions constituting, and/or emanating from,  “ITF” In Trust For  Beta in trust for Alpha
unsafe and unsound banking practice/s, as determined by the Corporation, in  “FAO” For the Account Of  Beta for the account of Alpha
consultation with the BSP, after due notice and hearing, and publication of a o Alpha: the depositor of the account
cease and desist order issued by the Corporation against such deposit  Example: Chlong and/or Tim ITF Indira
accounts or transactions; and o Indira: the depositor of the account
(4) Deposits that are determined to be the proceeds of an unlawful activity as
defined under RA 9160**, as amended. 8. What are the rules in determining accounts covered?
 For single accounts (including “By’, “ITF”, & “FAO” depositor’s account)
* RA 9576: “An Act Increasing The Maximum Deposit Insurance Coverage, And In o the aggregate of all deposits in the bank maintained in the same
Connection Therewith, To Strengthen The Regulatory And Administrative Authority, right and capacity for his benefit either in his own name or in the
And Financial Capability Of The Philippine Deposit Insurance Corporation (Pdic), name of others with MDIC of Php 500,000
Amending For This Purpose Republic Act Numbered Three Thousand Five Hundred  For joint accounts (Regardless of whether the conjunction “and”, “or” or
Ninety-One, As Amended, Otherwise Known As The PDIC Charter, And For Other “and/or”):
Purposes” o the aggregate of all the specific depositor’s joint accounts,
** RA 9160: “An Act Defining The Crime Of Money Laundering, Providing Penalties
separately insured from single accounts, with MDIC of Php 500,000
Therefor And For Other Purposes” OR “Anti-Money Laundering Act of 2001”
 For single and joint accounts of the same specific depositor
o Single accounts and Joint accounts are insured separately
7. Definition of accounts
o The aggregate MDIC is Php 1,000,000
a. Single accounts o Php 500,000 from single accounts & Php 500,000 from joint accounts
 Single accounts are accounts maintained solely by a depositor (natural
person or juridical entity/organization). All accounts held in one name.
o Natural Person: refers to any individual person (eg. Sole proprietors)
o Juridical entity: refers to a corporation, partnership or cooperative,
9. What is compensation or set-off in relation to computing insured deposits?
civic organizations, registered associations
(How is insurance coverage determined)
o Php 500,000 MDIC after determining he/she is the sole depositor of
 All deposits… accounts can be set-off (compensation)
the accounts
 SPLITTING OF ACCOUNTS: within 120 days after closure of bank…
pwede mag “piercing the veil of corporation”
b. Joint accounts
 In determining such amount due to any depositor, there shall be added o In a meeting called for the purpose and
together all deposits in the bank maintained in the same right and capacity chaired by the Secretary of Finance; and
for his or benefit either in his or her own name or in the name of others. o subject to the approval of the President of the
 A joint account regardless of whether the conjunction “and.” “or,” “and/or” is Philippines 
used, shall be insured separately from any individually-owned deposit  the outstanding balance of each account is adjusted, such that interests are
account updated, withholding taxes are deducted, accounts maintained by a depositor
o For joint accounts (if the account is held jointly by two or more in the same right and capacity are added together; and whenever applicable,
natural persons, OR by two or more juridical persons or entities): unpaid loans and other obligations of the depositor are deducted; and in no
 the MDIC shall be divided into as many equal shares as case shall insured deposit exceed P500,000. MONTHLY PAYMENT FOR
there are individuals, juridical persons or entities (unless a PDIC INSURANCES
different sharing is stipulated in the document of deposit)
o For joint accounts (if the account is held by a juridical person or 10. Requirements for Claims
entity jointly with one or more natural persons),
 the MDIC shall be presumed to belong entirely to such a. Who are required to file claims?
juridical person or entity  (if 100,00 below imong money) No it depends, if sakto imong records and no
o For joint accounts (the aggregate of the interest of each co-owner obligations with the bank. PDIC WILL just issue checks to them
over several joint accounts whether owned by the same or different  Depositors are required to file claims. Such depositors are:
combinations of individuals, juridical persons or entities) o With valid deposit accounts with balances of more than
 subject to the MDIC of Five Hundred Thousand Pesos P100,000.00
(P500,000.00) o With outstanding obligations with the closed bank either as
o The provisions of any law to the contrary notwithstanding, no borrower, co-maker, or as spouse of borrower;
owner/holder of any passbook, certificate of deposit or other evidence o With incomplete mailing address found in the bank records, or
of deposit failed to update them through the MAUF issued by the PDIC;
 Be recognized as a depositor entitled to the rights provided in o With accounts maintained under the name of business entities;
this Act unless the passbook, certificate of deposit or other o With accounts not eligible for early payment, regardless of type of
evidence of deposit is determined by the Corporation to be an account and account balance per advice of PDIC; and
authentic document or record of the issuing bank o Who are deceased whose filing of claim is thru the legal heirs
o In case of a condition that threatens the monetary and financial
 Depositors with deposit balances of Php100,000 and below may update their
stability of the banking system that may have systemic addresses using the MAUF and submit to PDIC representatives stationed at
consequences, as defined in Section 22 the closed bank premises before the start of the onsite claims settlement
 As determined by the Monetary Board, maximum deposit operations.
insurance cover may be adjusted in such amount, for such
a period, and/or for such deposit products b.  What are the documents required in support of the claim?
 PRE-REQUISITES: may be determined by a  The documents required in support of the claim are original evidence of
o unanimous vote of the Board of Directors deposits, 1 valid original ID with photo and signature, birth certificate from
PSA and valid ID of parent (18 yrs old and below depositors), original copy
 of notarized Special Power of Attorneys (claimants who are not the Attorney (SPA) from the depositor
signatories in the bank records), and claim form.  If a depositor is unable to file his claim personally, a representative may file
on his behalf by presenting a duly notarized Special Power of Attorney
i. ORIGINAL EVIDENCE OF DEPOSITS such as savings passbook, certificate (SPA), or duly authenticated SPA, or in the case of a depositor residing
of time deposit, bank statement, used or unused checks, or ATM card. abroad, an SPA duly authenticated by the Philippine Consulate nearest his
ii. ONE (1) VALID ORIGINAL PHOTO-BEARING IDENTIFICATION residence.
DOCUMENT (ID) with clear signature of depositor/claimant (e.g. Driver's 11. What are not covered by PDIC insurance?
License, SSS/GSIS ID, Senior Citizen's ID, Passport, PRC ID, OWWA/OFW
ID, Seaman's ID, Alien Certificate of Registration ID, Voter's ID). (IT IS  The corporation (PDIC) shall not pay deposit insurance for the following
RECOMMENDED TO BRING AT LEAST TWO (2) VALID IDs IN CASE OF accounts or transactions, whether denominated, documented, recorded or
DISCREPANCIES IN SIGNATURE). booked as deposit by the bank:
iii. For depositors below eighteen (18) years old, photocopy of birth certificate (5) Investment products such as bonds and securities, trust accounts, and
from the Philippine Statistics Authority (PSA) or a duly certified copy issued other similar instruments;
by the local civil registrar, and valid ID of the parent. (6) Deposit accounts or transactions which are unfunded, or that are fictitious
iv. Original copy of a notarized Special Power of Attorney (SPA) for claimants or fraudulent;
who are not the signatories in the bank records. In the case of minor (7) Deposits accounts or transactions constituting, and/or emanating from,
depositor, the SPA must be executed by the parent. unsafe and unsound banking practice/s, as determined by the Corporation, in
v. Claim Form: consultation with the BSP, after due notice and hearing, and publication of a
When filing claim during the onsite CSO period, or during personal filing at cease and desist order issued by the Corporation against such deposit
the PDIC PAC, a system generated Claim Form shall be printed by PDIC accounts or transactions; and
representative after interview/processing. (8) Deposits that are determined to be the proceeds of an unlawful activity as
When filing through mail, please download the PDIC Claim Form. The claim defined under RA 9160**, as amended.
form needs to be accomplished, signed, and notarized. Depositors must
ensure that the signature on the Claim Form is similar with the signature in
the bank records and the valid IDs submitted.

c. Who should sign the Claim Form?

DESIGNATED PERSON REASON
Depositor of Account For depositor 18 years old and above
Parent Of the depositor below 18 years old/minor
Agent In the case of “By” account
Trustee (the depositor) In the case of “In Trust For (ITF)” account
Each Depositor/ Account Holder in the case of joint accounts
or account maintained as "Or",
"And/Or" or "And”
Authorized Representative/s for business entities, deceased depositors
and person who has Special Power of