Law Summary
Inventory and Reporting Requirements
- Branch Clerks of Court/Officers-in-Charge must conduct an inventory within 30 days for all surety bonds posted on or before August 16, 2004.
- Inventory report submitted under oath to the Presiding/Pairing/Acting Judge or Executive Judge and the Office of the Court Administrator (OCA).
- Judges will determine which bonds to confiscate or forfeit based on the report.
Procedures for Confiscation and Forfeiture
- Upon determination, judge issues an Order of Forfeiture and, where warranted, a Judgment of Forfeiture per Section 21, Rule 114 of the Rules of Court.
- After finality of Judgment of Forfeiture, judge orders writ of execution for collection.
Process for Surety Companies No Longer Accredited
- Branch Clerk issues writ of execution and forwards it to the Sheriff immediately.
- Sheriff notifies surety company in writing to pay within 15 days of receipt.
- If unpaid, Sheriff submits Return noting nonpayment within 3 days to issuing court and OCA.
- Judge orders Branch Clerk to issue writ of execution to the Clerk of Court/Ex-Officio Sheriff in surety company's principal office jurisdiction.
- Clerk/Ex-Officio Sheriff issues Notice of Garnishment to debtors or holders of credits owed to the surety company.
- Other collection remedies under Section 9(b), Rule 39 of the Rules of Civil Procedure may also be pursued.
- Waives prior requirement of notifying and seeking assistance of territorial sheriffs for execution outside jurisdiction; designated Clerk/Ex-Officio Sheriff authorized and obligated to enforce writ.
- Clerk/Ex-Officio Sheriff must submit Return to originating court and OCA within 30 days after execution.
Process for Surety Companies Accredited but With Outstanding Obligations
- Obligations enforced as per Section VI of A.M. No. 04-07-02 regarding execution of judgments of forfeiture and claims against cash deposits.
- If not satisfied, collection proceeds according to procedures for non-accredited companies described above.
Expense Handling
- Clerk of Court submits estimated implementation expenses to Chief Justice via the Fiscal Management and Budget Office (FMBO) for approval.
- FMBO releases funds payable to Clerk of Court/Ex-Officio Sheriff handling the writ, subject to liquidation upon Return submission.
Legal Fees
- Provisions on legal fees do not apply to procedures under this circular.
Effectivity and Compliance
- Circular took effect immediately upon issuance on June 20, 2006.
- Mandatory strict compliance directed for all concerned judicial officers and personnel.