Presidential Decree No. 1451 (PD 1451) — 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."
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 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."
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."
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."
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
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
