Amending Act Numbered Thirty Nine Hundred And Thirty Six, An Act Requiring Banks, Trust Corporations, And Building And Loan Associations, To Transfer Unclaimed Balances Held By Them To The
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Amending Act Numbered Thirty Nine Hundred And Thirty Six, An Act Requiring Banks, Trust Corporations, And Building And Loan Associations, To Transfer Unclaimed Balances Held By Them To The
Presidential Decree No. 679
April 2, 1975
Case Overview and Summary
Summary of Presidential Decree No. 679Definitions and Coverage:
- "Unclaimed balances" include credits, deposits, bullion, securities, or other evidence of indebtedness with banks, building and loan associations, and trust corporations, in favor of any person known to be dead or who has not made further deposits or withdrawals during the preceding ten years or more. (Section 1)
- "Banks", "building and loan associations", and "trust corporations" refer to institutions defined under Sections 2, 39, and 56, respectively, of the General Banking Act, whether organized under special charters or not. (Section 1)
Reporting Requirements:
- Banks, building and loan associations, and trust corporations must forward a sworn statement to the Treasurer of the Philippines within January of every odd year, listing all unclaimed balances held by them. (Section 2)
- The sworn statement must include details such as names and last known addresses of creditors/depositors, amount and date of the unclaimed balance, date of death or last deposit/withdrawal, and interest due. (Section 2)
- A copy of the sworn statement must be posted in a conspicuous place in the premises of the institution for at least sixty days. (Section 2)
- The institution must communicate with the person in whose favor the unclaimed balance stands before filing the sworn statement. (Section 2)
Escheat Proceedings:
- The Solicitor General shall commence an action in the Court of First Instance where the institution is located, joining the institution and all creditors/depositors as parties. (Section 3)
- Service of process shall be made by delivery to the institution's president, cashier, or managing officer, and by publication in a newspaper. (Section 3)
- If the court determines that the unclaimed balances are unclaimed as stated, it shall render judgment in favor of the Government of the Philippines, commanding the institution to deposit the balances with the Treasurer of the Philippines. (Section 3)
- A notice shall be published, requiring any interested persons to appear within sixty days and show cause why the unclaimed balances should not be deposited with the Treasurer of the Philippines. (Section 3)
- The court shall have full jurisdiction over the unclaimed balances and persons claiming interest in them. (Section 3)
Penalties and Liability:
- If an institution neglects or refuses to file the sworn statement, it shall pay the Government 500 pesos per month or fraction thereof during which the default continues. (Section 4)
- An institution that deposits unclaimed balances with the Treasurer of the Philippines shall not thereafter be liable to any person for the same, and any action against the institution for such balances shall be defended by the Solicitor General without cost to the institution. (Section 5)
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Amending Act Numbered Thirty Nine Hundred And Thirty Six, An Act Requiring Banks, Trust Corporations, And Building And Loan Associations, To Transfer Unclaimed Balances Held By Them To The
Presidential Decree No. 679
•April 2, 1975
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 679 April 2, 1975
AMENDING ACT NUMBERED THIRTY NINE HUNDRED AND THIRTY SIX, AN ACT REQUIRING BANKS, TRUST CORPORATIONS, AND BUILDING AND LOAN ASSOCIATIONS, TO TRANSFER UNCLAIMED BALANCES HELD BY THEM TO THE TREASURER OF THE PHILIPPINES AND FOR OTHER PURPOSES.
WHEREAS, Act No. 3936 requires the publication of a sworn statement of unclaimed balances in banks once a week of three consecutive weeks in at least two newspapers of general circulation in the locality where the banks are situated, if there be any, and if there is none, in the City of Manila, one in English and one in Spanish, the cost of which shall be paid by the Bureau of Treasury, which shall be reimbursed out of the escheated funds;
WHEREAS, the law also provides for the publication of summons and a notice upon the commencement of the prescribed judicial proceedings for the escheat of unclaimed balances;
WHEREAS, past experience has shown that the cost of publication required by law, the increase of which...
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