Question & AnswerQ&A (Act No. 3936)
Under Act No. 3936, 'unclaimed balances' include credits or deposits of money, bullion, security, or other evidence of indebtedness of any kind and interest thereon with banks in favor of any person unheard from for a period of ten years or more.
'Banks' as defined in Act No. 3936 include institutions under section 1628 of Act No. 2711 (Revised Administrative Code), whether organized under special charters or not, and also include pawn broking establishments.
All banks must forward to the Insular Treasurer a sworn statement of all credits and deposits held in favor of persons known to be dead or who have not made deposits or withdrawals for ten years or more, detailing the depositors' names, amounts, dates, and other relevant information.
The Insular Treasurer must publish the list once a week for three consecutive weeks in at least two newspapers of general circulation in the locality of the bank, paying the publication cost and reimbursing it from the escheated fund.
The Attorney-General initiates an action in the Court of First Instance in the province where the bank is located to claim the unclaimed balances for the Government of the Philippine Islands, joining the bank and known creditors or depositors as defendants.
Service is made by delivering a copy of the plaint and summons to the president, cashier, or managing officer of each defendant bank and by publishing the summons once a week for three consecutive weeks in at least two newspapers of general circulation (one in English and one in Spanish) in the locality or, if none, in Manila.
The court must determine whether the credits or deposits are unclaimed as defined in the Act and, if so, render a judgment declaring the credits or deposits have escheated to the Government of the Philippine Islands, ordering the bank to deposit them with the Insular Treasurer.
The bank must forfeit to the Government of the Philippine Islands one hundred pesos per month or fraction thereof for each month the default continues.
Banks that have properly deposited unclaimed balances with the Insular Treasurer shall no longer be liable to any person for those funds, and any action against them for such funds will be defended by the Attorney-General at no cost to the bank.
Act No. 3936 took effect on January 1, 1933.