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ADMINISTRATIVE ORDERS
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ADMINISTRATIVE ORDER NO. 275 -
AUTHORIZING PNB GENERAL INSURANCE CO., 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 in 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 of the performance of the condition thereof shall be
sufficient when executed or guaranteed solely by a 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 execution 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 section further provides that no head of departments
judge, officer, board or body, 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, bonds, and
undertakings;
WHEREAS, PNB General Insurance Co., 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, CORAZON C. AQUINO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby authorize PNB
General Insurance Co., 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 PNB
General Insurance Co., Inc., becomes indebted-to any government
instrumentality or political subdivision thereof, or to any
government-owned or controlled corporation in the total 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 2nd day of April in the year of Our Lord, nineteen hundred and
ninety two.
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Since 19.07.98.