Repeal of Certain Definitions
- Specific subsections (j) through (o) in Section 1.01 are repealed, affecting certain previously defined terms.
Coverage of Deposit Insurance
- Any deposit-taking institution in the Philippines, or those that may engage in such business in the future, must be insured with the PDIC.
Assessment Obligations of Insured Banks
- Insured banks must pay semi-annual assessments based on a rate set by the PDIC Board, not exceeding 0.2% per annum on the assessment base.
- The minimum semi-annual assessment fee is set at ₱250.
Determination of the Assessment Base
- The assessment base is the total deposit liabilities without deducting depositor indebtedness, average of specified reporting dates.
- Foreign currency deposits are included, converted to pesos at applicable interbank rates.
- Branch deposits outside the Philippines are also considered if the bank elects such inclusion.
Maintenance and Payment of Assessments
- Banks must keep records allowing verification of their assessment base.
- Assessments are due upon filing certified statements, in a manner prescribed by the PDIC Board.
Filing Certified Statements
- Newly insured banks file PDIC Form No. 202 after the first semi-annual period.
- Regular insured banks file PDIC Form No. 201 twice a year, detailing deposit liabilities for two base days per period.
- Certified statements must be sworn to by authorized officers, and copies retained by the bank and filed with PDIC.
Payment of Insured Deposits
- Depositors of closed insured banks are entitled to payment covering net deposits up to ₱100,000, aggregating all deposits held in the same right.
PDIC's Subrogation Rights
- Upon payment of insured deposits, PDIC is subrogated to depositor rights against the closed bank up to the amount paid.
- PDIC's claims are preferred credits, akin to tax claims, effective even in pending liquidation with no asset distribution.
Cease and Desist Orders
- PDIC may issue such orders when unsafe practices, legal violations, or breaches of PDIC instructions or conditions are found.
- Notices require corrective action within no less than 15 days, or 15 days max if the violations threaten insolvency or significant asset dissipation.
- Failure to act leads to reporting to the Monetary Board; PDIC may impose fines and take further corrective action.
Termination of Insured Status
- Insured status may be terminated for violations of cease and desist orders or failure to pay assessments within prescribed periods.
- Termination orders are final unless overridden by the Board of Directors.
- Banks must notify depositors of termination; PDIC publishes notice in a widely circulated newspaper, costs are charged to the bank.
Extension and Resumption of Insurance Coverage
- Deposits existing as of the termination date remain insured for 90 days post-publication, excluding new or additional deposits after that date.
- Banks may apply for reinstatement of insured status after correcting causes for termination; approval lies with the PDIC Board.
Legal Remedies and Penalties
- PDIC may enforce penalties and seek legal remedies authorized under various sections of R.A. 3591 as amended.
- Enforcement of other legal remedies under existing laws remains without prejudice.
This comprehensive explanation encapsulates the critical provisions, scope, legal definitions, procedural mandates, penalties, and PDIC's powers as amended by PDIC Regulatory Issuance No. 92-3.