Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 679)
Unclaimed balances include credits or deposits of money, bullion, securities, or other evidence of indebtedness with banks, building and loan associations, and trust corporations in favor of any person known to be dead or who has not made deposits or withdrawals for ten years or more.
They refer to institutions defined under Sections 2, 39, and 56 respectively of Republic Act No. 337, the General Banking Act, as amended, whether organized under special charters or not.
They must forward a sworn statement each odd year in January to the Treasurer of the Philippines listing all unclaimed balances, including details like names, addresses, amounts, dates, and interest due, and post a copy at their premises for 60 days.
They must communicate with the person in whose favor the unclaimed balance stands at their last known residence or post office address.
The Solicitor General files actions in the Court of First Instance to declare unclaimed balances escheated to the government and joins relevant parties, including the banks and depositors, to obtain a court judgment.
Summons and notice are served to bank officials and published in a local newspaper; if none exists, publication is in Manila. The publication includes a 60-day period for other claimants to appear and show cause.
After publication and service, the court has full and complete jurisdiction over the unclaimed balances and all persons claiming interest, allowing it to hear all parties and render appropriate judgment.
They shall pay the government five hundred pesos for each month or fraction thereof during which the default continues.
They are no longer liable to any person for the deposited unclaimed balance, and any legal action against them regarding the deposited balance will be defended by the Solicitor General at no cost to the bank or institution.
The decree takes effect immediately upon its promulgation on April 2, 1975.