Extension of Bonding Law to Govt-owned Companies

Section 1 of Act No. 2853 amends Section 314 of Act No. 2711 (the Administrative Code of 1917).
Act No. 2853 operates through the framework of the bonding provisions in this chapter referenced in Section 314.

Section 314 establishes that certain government personnel must be treated as bondable where their duties involve accountability over funds or property.
Act No. 2853 extends that bonding rule to employees of companies whose majority of the stock is held by the Government.

Section 314 deems bondable personnel to include every officer, agent, and employee of the Government of the Philippine Islands.
Section 314 also covers officers, agents, and employees of companies or corporations the majority of the stock of which is held by the Insular Government.
Section 314 applies whenever the nature of the duties permits or requires custody of funds or property for which the person is accountable.

Section 314 provides that the covered personnel are deemed a bondable officer when they handle accountable funds or property.
Section 314 requires that except as otherwise provided, each such person shall be bonded and his fidelity insured under this chapter.
Section 314 limits bondability and the duty to bond to those whose duties involve custody of funds or property for which they are accountable.

Section 314 exempts justices of the peace from the bonding requirements.
Section 314 excludes only “the justice of the peace of the city of Manila” from the general exemption for justices of the peace, so the Manila justice of the peace remains subject to the bonding requirements of the chapter.