Reporting and Disclosure Requirements
- Banks must submit a sworn statement each January of every odd year listing all unclaimed balances held for ten years or more.
- The statement must include depositor’s name, last known address, amount, type of deposit or security, date of last transaction or death if known, and accrued interest.
- The Insular Treasurer will publish these statements weekly for three consecutive weeks in at least two newspapers (English and Spanish) in the locality or in Manila if none exist locally.
- Publication costs are initially borne by the Treasury Bureau but reimbursed from the escheated funds.
- Treasurer must inform the Attorney-General about the existence of unclaimed balances.
Legal Proceedings for Escheatment
- Upon notification, the Attorney-General initiates an action in the Court of First Instance of the bank’s province.
- The case includes the bank and all known depositors or creditors.
- Service of summons is via personal delivery to bank officers and publication in two local newspapers.
- A notice is also published inviting other interested persons to appear within 60 days and assert claims.
- The court holds jurisdiction over the deposits and claimants, and upon hearing, may order the unclaimed balances to escheat to the government.
- Judgment commands the bank(s) to deposit the unclaimed balances with the Insular Treasurer.
Penalties for Non-Compliance
- Banks neglecting or refusing to file the sworn statement and publications are fined ₱100 per month of default.
Liability and Protection of Banks
- Banks depositing funds with the Insular Treasurer as mandated shall be discharged from further liability to depositors.
- Legal actions against banks for the delivered funds must be defended by the Attorney-General at no cost to the banks.
Effectivity of the Act
- The provisions of this Act became effective on January 1, 1933.