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PHILIPPINE LAWS, STATUTES & CODES
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ADMINISTRATIVE ORDERS
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ADMINISTRATIVE ORDER NO. 377 -
AUTHORIZING THE CORPORATE GUARANTEE & INSURANCE COMPANY, 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 section 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, the Corporate Guarantee
& Insurance Company, 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 Corporate Guarantee & Insurance
Company, 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 Corporate Guarantee &
Insurance Company, 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 3rd day of February, in the year of Our Lord,
nineteen hundred and ninety eight.
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Since 19.07.98.