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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. 96 -
AUTHORIZING METRO-TAISHO INSURANCE CORPORATION TO BECOME A SURETY UPON
OFFICIAL RECOGNIZANCES, STIPULATIONS, BONDS AND UNDERTAKINGS
WHEREAS, Sec. 1 of Act No. 536, as
amended by Act 2206, provides that whenever any recognizances,
stipulation, bond or undertaking conditioned for the faithful
performance of any duty or 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 recognizances,
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, 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
recognizances, 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; and
WHEREAS, METRO-TAISHO 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, CORAZON C. AQUINO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby authorize
METRO-TAISHO INSURANCE CORPORATION to become a surety upon official
recognizances, stipulations, bonds and undertakings in such manner and
under such conditions as are provided by laws, subject, however, to the
condition that the amount constituting the contributed surplus fund
shall not at anytime be withdrawn and paid back in cash to the
contributing stockholders without prior recommendation and
justification by the Insurance Commissioner duly approved by the
Secretary of Finance, and provided further, that the moment
METRO-TAISHO 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 the
Administrative Order.
Done in the City of Manila,
this 11th day of October, in the year of Our Lord, nineteen hundred and
eighty-eight.
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Since 19.07.98.