Question & AnswerQ&A (EXECUTIVE ORDER NO. 268)
The primary purpose of Executive Order No. 268 is to exempt dormant accounts of the Philippine Postal Savings Bank (PPSB) from the prescribed escheat proceedings under Sections 2000 and 2000-A of the Revised Administrative Code and to provide an alternative procedure for their escheat.
Dormant accounts refer to accounts of the PPSB with no deposit, withdrawal, or other transactions for more than ten (10) years since the last transaction.
The Philippine National Bank (PNB) assumed the assets and liabilities of the Philippine Postal Savings Bank as per Presidential Decree No. 221, as amended by Presidential Decree No. 241.
The procedures prescribed under Sections 2000 and 2000-A of the Revised Administrative Code related to escheat, which include posting printed lists in municipalities, providing the Solicitor General lists and sworn statements, legal action by the Solicitor General, and publication of summons in the Official Gazette, are exempted.
The alternative procedure requires the publication of a notice to all depositors in a newspaper of general circulation once a week for three consecutive weeks, requiring them to withdraw their deposits within six months. Deposits unclaimed after six months are deemed escheated in favor of PNB without further proceedings.
Deposits remaining unclaimed after six months from the last publication are deemed escheated in favor of the Philippine National Bank as trustee of the PPSB assets, and will be disposed of in accordance with Presidential Decree No. 241.
Nearly all dormant accounts have minimal balances making the detailed prescribed escheat proceedings impractical and costly to implement.
The Philippine National Bank has been sending notices to the last known addresses of depositors since 1973.
The Executive Order provides that unclaimed PPSB dormant accounts after the six-month notice period will be deemed escheated in favor of PNB without further act or legal proceedings.
Executive Order No. 268 takes effect immediately upon its signing on July 25, 1987.
Yes, Section 2 of the Executive Order states that all laws, decrees, orders or parts inconsistent with this order are repealed or modified accordingly.
Executive Order No. 268 was signed by President Corazon C. Aquino and countersigned by Executive Secretary Joler P. Arroyo.