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ADMINISTRATIVE ORDERS
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ADMINISTRATIVE ORDER NO. 207 -
AUTHORIZING THE NETHERLANDS INSURANCE COMPANY (PHILIPPINES), INC., TO
BECOME A SURETY UPON OFFICIAL RECOGNIZANCES, STIPULATIONS, BONDS, AND
UNDERTAKINGS
WHEREAS, Sec. 1 of Act No. 536, as
amended by Act No. 2206, provides that, whenever any recognizance,
stipulation, bond, or undertaking conditioned for the faithful
performance of any duty or of any contract made with any public
authority, national, provincial, municipal, or otherwise or of any
undertaking or for doing, or refraining from doing anything, and such
recognizance, stipulation, bond or undertaking specified is, by the
laws of the Philippines or by the regulations or resolutions of any
public authority therein, required or permitted to be given with one
surety or with two or more sureties, the execution of the same or the
guaranteeing solely of the performance of the condition thereof shall
be sufficient when executed or guaranteed solely by any corporation
organized under the laws of the Philippines, having power to guarantee
the fidelity of persons holding positions of public or private trust
and to execute and guarantee bonds of undertakings in judicial
proceedings and to agree to the faithful performance of any contract or
undertaking made with any public authority;
WHEREAS, said sanction further provides that no head of department,
judge, officer, board, or body, whether executive, legislative, or
judicial, shall approve or accept any corporation as surety on any
recognizance, stipulation, bond, contract, or undertaking, unless such
corporation has been authorized to do business in the Philippines in
accordance with the provisions of said Act No. 536, as amended, nor
unless such corporation has, by contract with the Government of the
Philippines, been authorized to become a surety upon official
recognizances, stipulations, bonds, and undertakings;
WHEREAS, NETHERLANDS INSURANCE COMPANY (PHILIPPINES), INC., is a
domestic corporation organized and existing under the laws of the
Republic of the Philippines, and fulfills the conditions prescribed by
said Act No. 536, as amended.
NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Philippines, by
virtue of the powers vested in me by law, do hereby authorize the
NETHERLANDS INSURANCE COMPANY (PHILIPPINES) INC., to become a surety
upon official recognizances, stipulations, bonds, and undertakings, in
such manner and under such conditions as are provided by law, subject,
however, to the condition that the amount constituting the contributed
surplus fund shall not at anytime be withdrawn without prior
recommendation and justification by the Insurance Commissioner, duly
approved by the Secretary of Finance, and provided further, that the
moment NETHERLANDS INSURANCE COMPANY (PHILIPPINES), INC., becomes
indebted to any government instrumentality or political subdivision
thereof, or to any government-owned or controlled corporation in the
amount of P50,000.00 accruing from the issuance of bonds, the same
having become due and demandable, the insurance company must
voluntarily desist from writing or issuing all kinds of bonds until the
outstanding liabilities in government bonds shall have been fully paid
or settled. Non-payment of liabilities shall be a cause for the
immediate revocation of this Administrative Order.
DONE in the City of Manila,
this 28th day of July, in the year of Our Lord, nineteen hundred and
ninety-five.
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Since 19.07.98.