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PHILIPPINE LAWS, STATUTES & CODES
A collection of Philippine laws, statutes and codes not included or cited in the main indices of the Chan Robles Virtual Law Library.
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ADMINISTRATIVE ORDERS
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ADMINISTRATIVE ORDER NO. 380 -
AUTHORIZING THE PHILIPPINE GENERAL INSURANCE CORPORATION 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 Philippine General
Insurance Corporation 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 Philippine General Insurance
Corporation 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 Philippine General Insurance
Corporation 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 6th day of February, in the year of Our Lord,
nineteen hundred and ninety eight.
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