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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. 52 -
AUTHORIZING THE FIRST NATIONWIDE ASSURANCE CORPORATION TO BECOME A
SURETY UPON OFFICIAL RECOGNIZANCES, STIPULATIONS, BONDS AND UNDERTAKINGS
WHEREAS, 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 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 or
undertakings in judicial proceedings and to agree to the faithful
performance of any contract or undertaking made with any public
authority;
WHEREAS, the said Act, as amended, further provides that no head of
Department, court, 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 the manner provided by the provisions of the 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 FIRST NATIONWIDE ASSURANCE 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, CORAZON C. AQUINO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby authorize FIRST
NATIONWIDE ASSURANCE 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 FIRST
NATIONWIDE ASSURANCE 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 the
Administrative Order.
Done in the City of Manila,
this 21st day of December, in the year of Our Lord, nineteen hundred
and eighty-seven.
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Since 19.07.98.