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EXECUTIVE ORDERS
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EXECUTIVE ORDER NO. 289 - FURTHER
AMENDING REPUBLIC ACT NO. 265, AS AMENDED, OTHERWISE KNOWN AS “THE
CENTRAL BANK ACT”
I, CORAZON C. AQUINO, President of the Philippines do hereby order the further amendment of Republic Act No. 265, as amended as follows:
Section 1.
“SEC.
29.
The Monetary Board shall
thereupon determine within sixty days whether the institution may be
reorganized or otherwise placed in such a condition so that it may be
permitted to resume business with safety to its depositors and
creditors and the general public and shall prescribe the conditions
under which such resumption of business shall take place as well as the
time for fulfillment of such conditions. In such case, the expenses and
fees in the collection and administration of the assets of the
institution shall be determined by the Board and shall be paid to the
Central Bank out of the assets of such institution.
“If the Monetary Board shall
determine and confirm within the said period that the bank or non-bank
financial intermediary performing quasi-banking functions is insolvent
or cannot resume business with safety to its depositors, creditors, and
the general public, it shall, if the public interest requires, order
its liquidation, indicate the manner of its liquidation and approve a
liquidation plan which may, when warranted, involve disposition of any
or all assets in consideration for the assumption of the equivalent
liabilities. The liquidator designated as hereunder provided shall, by
the Solicitor General, file a petition in the regional trial court
reciting the proceeding which have been taken and praying the
assistance of the court in the liquidation of such institution. The
court shall have jurisdiction in the same proceedings to assist in the
adjudication in the disputed claims against the bank or non-bank
financial intermediary performing quasi-banking functions and in the
enforcement of the individual liabilities of the stockholders, and do
all that is necessary to preserve the assets of such institution and to
implement the liquidation plan approved by the Monetary Board. The
Monetary Board shall designate an official of the Central Bank, or a
person of recognized competence in banking or finance, as liquidator
who shall take over and continue the functions of the receiver
previously appointed by the Monetary Board under this Section . The
liquidator shall with all convenient speed, convert the assets of the
banking institution or non-bank financial intermediary performing
quasi-banking functions to money or sell, assign, or otherwise dispose
of the same to creditors and other parties for the purpose of paying
the debts of such institutions and he may, in the name of the bank or
non-bank financial intermediary performing quasi-banking functions and
with the assistance of counsel as he may retain, institute such actions
as may be necessary in the appropriate court to collect and recover
accounts and assets of such institutions or defend any action filed
against the institution: Provided, however, That after having
reasonably established all claims against the institution, the
liquidator may, with the approval of the court, effect partial payments
of such claims from assets of the institution in accordance with their
legal priority.
“The assets of an institution
under receivership or liquidation shall be deemed in custodia legis in
the hands of the receiver or liquidator and shall, from the moment of
such receivership or liquidation be exempt from any order of
garnishment, levy, attachment, or execution.
“The provision of any law to the
contrary notwithstanding, the actions of the Monetary Board under this
Section , Sec. 28-A, and the second paragraph of Sec. 34 of this
Act shall be final and executory, and can be set aside by a court only
if there is convincing proof, after hearing, that the action is plainly
arbitrary and made in bad faith: Provided, That the same is raised in
an appropriate pleading filed by the stockholders of record
representing the majority of the capital stock of the institution
before the proper court within a period of ten (10) days from the date
the receiver takes charge of the assets and liabilities of the bank or
non-bank financial intermediary performing quasi-banking functions or,
in case of conservatorship or liquidation, within ten (10) days from
receipt of notice by the said majority stockholders of said bank or
non-bank financial intermediary of the order of its placement under
conservatorship or liquidation. No restraining order or injunction
shall be issued by any court enjoining the Central Bank from
implementing its actions under this Section and the second paragraph of
Sec. 34 of this Act in the absence of any convincing proof that the
action of the Monetary Board is plainly arbitrary and made in bad faith
and the petitioner of plaintiff files a bond, executed in favor of the
Central Bank, in an amount to be fixed by the court. The restraining
order or injunction shall be refused or, if granted shall be dissolved
upon filing by the Central Bank of a bond, which shall be in the form
of cash or Central Bank cashier’s check., in an amount twice the amount
of the bond of the petitioner or plaintiff conditioned that it will pay
the damages which the petitioner or plaintiff may suffer by the refusal
or the dissolution of the injunction. The provisions of Rule 58 of the
New Rules of the Court in so far as they are applicable and not
inconsistent with the provisions of this Section shall govern the
issuance and dissolution of the restraining order or injunction
contemplated in this Section .
“Insolvency, under this Act
shall be understood to mean that the realizable assets of a bank or a
non-bank financial intermediary performing quasi-banking functions as
determined by the Central Bank are insufficient to meet its
liabilities.
“The appointment of a
conservator under Sec. 28-A of this Act or the appointment of the
receiver or liquidator under this Section shall be vested exclusively
with the Monetary Board, the provisions of any law, general or special,
to the contrary notwithstanding.”
Sec. 2.
“SEC.
107.
Sec. 3.
Sec. 4.
Sec. 5.
DONE in the City of Manila,
this 25th day of July, in the year of Our Lord, nineteen hundred and
eighty-seven.
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