Professional Documents
Culture Documents
2010 Banking Mid-Term Exam
2010 Banking Mid-Term Exam
BANKING LAW I
.
INSTRUCTIONS
This Examination consists of EIGHTEEN (18) Multiple Choice Questions
on FIVE (5) PAGES. Read each Item VERY CAREFULLY. Choose the BEST
Answer for each Question and write down the Letter corresponding to your
choice. No explanations are necessary and none will be given credit. Answer
this Examination sequentially. Good luck! (5.5 points each, 1 point bonus)
5. A bank is NOT liable for its failure to observe the degree of diligence as
required by its fiduciary duty under Section 2 of the General Banking Law
of 2000
a. If such failure was prior to the enactment of the General Banking
Law of 2000.
b. If no actual damage was suffered by the depositor.
c. If the transaction involves money market placements.
d. If there is a contractual stipulation between the bank and the
depositor supported by valuable consideration which lowers the
degree of diligence required to be exercised by the bank to that of a
good father of the family.
9. The distinction between the three (3) modes of entry of foreign banks in
the Philippines under the Foreign Banks Liberalization Act (Republic Act
No. 7221) is immaterial in determining
a. whether or not a foreign bank may avail of more than one (1) mode
of entry.
b. whether or not Monetary Board approval is required for such entry.
c. whether or not a head office guarantee is required.
d. whether or not the foreign bank shall perform the same functions,
enjoy the same privileges, and be subject to the same limitations
imposed upon a Philippines bank of the same category.
10. The head office of a foreign bank authorized to operate branches in the
Philippines is sued in a Philippine court by a payee of a check drawn by a
depositor of the Philippine branch of such foreign bank which refused to
honor a check notwithstanding that funds were sufficient. What defense
can the head office raise to avoid liability to such payee?
a. Philippine courts have no jurisdiction over the head office of the
foreign bank.
b. The head office of a foreign bank is not liable for the unauthorized
acts of its Philippine branch
c. The head office guarantee is applicable only to liabilities to
depositors.
d. The bank is not liable to the payee for dishonor of checks.
14. A bank is liable to the depositor if it allows withdrawal of the funds in the
depositors account by someone who is not actually authorized by the
depositor, but who
a. presents the passbook and a withdrawal slip signed by the
depositor.
b. surrenders the certificate of time deposit.
c. appears as an authorized signatory of a corporate depositor in the
latest board resolution submitted to the bank, but is actually no
longer connected with the corporate depositor.
d. appears in the bank records as the depositor, but is actually merely
a trustee for the true owner of the funds.
15. What acts can a bank lawfully do or omit to do without violating its duty to
exercise extraordinary diligence in the handling of deposits?
a. Allowing a crossed check to be cashed provided that the payee is
personally known to the bank.
b. Accepting as deposit a check which is not indorsed by the payee,
provided that the check is a managers check.
c. Closing a demand deposit account without prior notice to a
depositor who has been misusing such account by repeatedly
overdrawing against it.
d. Disclosing information regarding an and/or savings account where
one of the two (2) depositors has given his written permission for
such disclosure.
5
17. A public officer is charged with violation of the anti-graft and corrupt
practices act before the Office of the Ombudsman. The Ombudsman
requests a bank to disclose information regarding the accounts in the
name of the public officers immediate family. What principle or ground
may the bank invoke to resist such inquiry?
a. An inquiry into bank deposits cannot be had at the preliminary
investigation level.
b. No inquiry into bank deposits can be had in the absence of a court
order.
c. No inquiry can be made except into bank accounts of the person
charged.
d. The Office of the Ombudsman has no power to inquire into bank
deposits.
- nothingness follows -
Assignment for Friday the 13th of August 2010: Rest of Chapter on Deposit;
Rest of Outline for the Semester will be distributed then.