Amending Republic Act Numbered Three Thousand Five Hundred Ninety-One, As Amended, Entitled "An Act Establishing The Philippine Deposit Insurance Corporation, Defining Its Powers And Duties
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Amending Republic Act Numbered Three Thousand Five Hundred Ninety-One, As Amended, Entitled "An Act Establishing The Philippine Deposit Insurance Corporation, Defining Its Powers And Duties
Presidential Decree No. 120
January 29, 1973
Case Overview and Summary
Summary of Presidential Decree No. 120Board of Directors of the Philippine Deposit Insurance Corporation (PDIC):
- Consists of 3 members: Governor of Central Bank of the Philippines, and 2 appointees by the President (Section 1)
- One appointee serves as full-time Chairman for 6 years with compensation set by the President (Section 1)
- Other appointee serves for 4 years, both appointees receive per diem up to P500 per month (Section 1)
- Vacancies are filled by new appointments to complete the unexpired term (Section 1)
- Board has authority to issue rules and regulations, direct management, appoint and remove officers (except those under Civil Service), and authorize expenditures (Section 1)
Permanent Insurance Fund:
- Increased to P20 million, with P15 million appropriated from the General Fund (Section 2)
Assistance to Insured Banks:
- PDIC can make loans, purchase assets, or make deposits in insured banks in danger of closing to prevent closure (Section 3)
- Funds for this purpose are limited to the Permanent Insurance Fund, additional appropriations, and borrowings from Central Bank (Section 3)
- Funds from assessments paid by insured banks cannot be used for this purpose or to repay Central Bank loans (Section 3)
- Loans and deposits may be subordinated to rights of depositors and other creditors (Section 3)
Operating Expenses:
- Within 1 year of the P15 million appropriation, annual operating expenses shall not exceed annual gross income from investing the Permanent Insurance Fund, plus 15% of first P10 million of other income (assessments, investments), plus 10% of excess over P10 million (Section 1)
- Recoveries and accrued income are excluded from income computation (Section 1)
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Amending Republic Act Numbered Three Thousand Five Hundred Ninety-One, As Amended, Entitled "An Act Establishing The Philippine Deposit Insurance Corporation, Defining Its Powers And Duties
Presidential Decree No. 120
•January 29, 1973
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 120 January 29, 1973
AMENDING REPUBLIC ACT NUMBERED THREE THOUSAND FIVE HUNDRED NINETY-ONE, AS AMENDED, ENTITLED "AN ACT ESTABLISHING THE PHILIPPINE DEPOSIT INSURANCE CORPORATION, DEFINING ITS POWERS AND DUTIES AND FOR OTHER PURPOSES"
WHEREAS, there were pending before Congress prior to the promulgation of Proclamation No. 1081, dated September 21, 1972, certain urgent measures proposing amendments to Republic Act No. 3591, as amended;
WHEREAS, the deposit insurance scheme has been adopted to generate more faith and confidence in the banking system and the Philippine Deposit Insurance Corporation, as an insurer of bank depositors, is entrusted not only with the vital role of protecting depositors from loss resulting from bank closures but also in helping develop a sound and stable banking system;
WHEREAS, the recommendations contained in the report on the Philippine financial system which have been accepted, with certain modifications by the monetary authorities, included among others, certain proposals geared toward ensuring the effectiveness of the Corporation in performing its assigned tasks;
NOW, THEREFORE, I, FERDINAND...
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