AMENDING REPUBLIC ACT NUMBERED THREE THOUSAND FIVE HUNDRED NINETY-ONE, AS AMENDED, ENTITLED "AN ACT ESTABLISHING THE PHILIPPINE DEPOSIT INSURANCE CORPORATION, DEFINING ITS POWERS AND DUTIES AND FOR OTHER PURPOSES."

• Number: Presidential Decree No. 1451
• Sections: 5

Preamble

WHEREAS, the deposit insurance scheme has been adopted to

generate public faith and confidence in the banking system and the Philippine

Deposit Insurance Corporation has been established to serve as the implementing

agency of the Government;

WHEREAS, the Government is currently engaged in the

institution of vital reforms in the banking system to enable it to play a more

effective role in the socio-economic development of the country;

WHEREAS, as a means of encouraging the accumulation of more

deposits in order to contribute to the socio-economic progress of the country,

it is imperative that protection of deposits in banks be enhanced;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers in me vested by the Constitution, do hereby

order and decree the amendment of Republic Act No. 3591, as amended, as

follows:

Section 1

SECTION 1. Section three (g) of Republic Act Numbered Three

Thousand Five Hundred Ninety-One, as amended, is hereby amended to read as

follows:

"SEC. 3. (g) The term 'insured deposit means the net amount

due to any depositor for deposits in an insured bank (after deducting offsets)

less any part thereof which is in excess of P15,000.00. Such net amount shall be

determined according to such regulations as the Board of Directors may prescribe

and in determining the amount due to any depositor there shall be added together

all deposits in the bank maintained in the same capacity and the same right for

his benefit either in his own name or in the name of others."

Section 2

SEC. 2. Section six (i) of the same Act is hereby amended to

read as follows:

"SEC. 6. (i) Trust funds held by an insured bank in a

fiduciary capacity whether held in trust or deposited in any other department or

in another bank shall be insured like other forms of deposits, in an amount not

to exceed P15,000.00 for each trust estate, and when deposited by the fiduciary

bank in another bank such trust funds shall be similarly insured to the

fiduciary bank according to the trust estates represented. Notwithstanding any

other provision of this Act, such insurance shall be separate from and

additional to that covering other deposits of the owners of such trust funds or

the beneficiaries of such trust estates: Provided, That where the

fiduciary bank deposits any of such trust funds in other insured banks, the

amount so held by other insured banks on deposit shall not for the purpose of

any certified statement required under subsections (b) and (c) of this section

be considered to be a deposit liability of the fiduciary bank, but shall be

considered to be a deposit liability of the bank in which such funds are so

deposited by such fiduciary bank. The Board of Directors shall have the power by

regulation to prescribe the manner of reporting and of depositing such trust

funds."

Section 3

SEC. 3. Section ten (a) and (a-1) of the same Act is hereby

amended by deleting and adding the following provisions to read as follows:

"SEC. 10 (a) A permanent insurance fund in the amount of

P5,000,000 to be appropriated from the General Fund is hereby created to be used

by the Corporation to carry out the purposes of this Act.

(a-1) The permanent insurance fund hereinabove created is hereby increased to

twenty million pesos and for this purpose, the amount of fifteen million pesos

is hereby appropriated from the General Fund: Provided, That the

maximum amount of the insured deposit of any depositor is hereby increased to

P15,000.00."

Section 4

SEC. 4. This Decree shall take effect immediately.

Done in the City of Manila, this 11th day of June, in the year of Our Lord,

nineteen hundred and seventy-eight.

(Sgd.) FERDINAND E. MARCOS

President of the

Philippines

By the President:

(Sgd.) JACOBO C. CLAVE

Presidential Executive

Assistant