September 4, 2019

LAW 3 (PART II)

Secrecy of Bank Deposit Law

 Memorize exceptions – those who are not covered by secrecy (prohibition to disclose)
*CHECK NOTES OF QUINN*
4 under the law of secrecy of bank deposits
1. There is waiver consent
2. If the person is charged or under impeachment
3. By court cover, in cases of bribery or dereliction of duty
4. If the deposit itself or bank account itself is the subject of litigation
Additional under special law
5. The person is charged of anti-graft and corruption
6. In cases where the person is compromised his tax liability (tax evasion) – with court order
7. He is a supporter of _______ (coup d'état)
8. In cases of money laundering
9. Investigation of PDIC in bank accounts
o If the person is charged with graft and corruption by the ombudsman, not only his account but also the
account of his wife, children, friends, and co-office??
 Ano-ano ang mga bank accounts covered by Bank Secrecy Law?

PDIC
 What are the accounts/bank transactions covered by the insurance? And what are not?
*In order to know how much the depositor will receive, if he/she will 500,000 or less than that*
FOR INSTANCE: Si A has several bank accounts in a bank, 5 accounts for example. The formula is
all bank accounts will be added and will be given the maximum (Php 500,000) kapag lumagpas ng
maximum yung total
--- Paano mo malalaman if all those accounts are covered? Paano kung 2 lang pala doon ang covered and A
has not reach the maximum?

 In cases of joint accounts (2 or more persons), each with separate bank accounts in a bank, and with joint
accounts whether and, or, and/or. How much the person will receive from PDIC?
ANS: If his separate bank account is more than the maximum, he will receive the maximum for that
 If the joint account has more than the maximum deposit, the joint account will receive separate
maximum and the presumption is that they will divided it equally, unless there is an agreement
regarding the division of the joint accounts

 In cases of joints accounts are being held by one natural person and juridical person. Who will receive the
PDIC insurance?
*Lahat ng deposit ay galing sa natural person*
ANS: The insurance will give entirely to juridical person

 What is the right that the PDIC may have upon payment of insurance?
Depositor na nagdeposit is not actually a deposit, sa paningin ng bank pinapautang mo yan. Kapag nagsara
ang bank, hindi naman yan magsasara for nothing, baka may nagawa yang mali (unsound practices) and it is
ordered by the central bank to be closed. Because of that the depositor has a claimed against the bank.
Example: 1,000,000 deposit, PDIC will pay the maximum (500,000). What will the PDIC have in paying
that insurance?
ANS: The PDIC is subrogated to the right of the creditor to claim against the bank in as much as the
insurance it pays
*CHECK CYRA’S NOTES*

 Who are the Board of Directors and what are their position?

Unclaimed Balanced Act

 5 years, there is no transaction. It is considered untouched.
 What is the duty of the bank to the unclaimed balance?
ANS: To cede the unclaimed balance to the Treasury of Philippines
 What is the proceedings that should be filed in order for the bank to cede the unclaimed balance to the
Treasury of the Philippines?
ANS: escheat filed by the solicitor general
 What are the step by steps? Duty of the bank?
1. Every odd years (every years in odd numbers), prepare a report
a. Names of the owner
b. Last known business or residential address
c. Interest
d. Amount
 e. Date/s of the last transaction
2. Post the report in a conspicuous place within the premises of the bank for 60 days
*conspicuous – kitang kita
3. Publication (newspaper) in general or local circulation once a week for 3 consecutive weeks – (for 1
year)
4. (After 1 year) Give the report to the Treasury of the Philippines
5. Inform the office of the solicitor general regarding of the unclaimed balance
6. Solicitor general (lawyer ng bansa) will be the one to file the escheat proceedings
--- To order the bank to cede the money to the Treasury of the Philippines. Hindi naman sa bank yon so
kayamanan yon para ibalik sa Treasurer of the Philippines.
THEORY: Ang tao namatay na walang tagapagmana, yung properties niya should be escheated to the
Philippines. All these properties belong to the State. Pinahiram at pinagamit lang sa atin for the improvement of
the country. So kung wala nang gagamit it should be escheated to the State. Hindi dapat nilalabas sa bansa.

Yung mga nangungurakot, inagaw na nga nila yung pera na gagamitin para sa bansa, nilalabas pa nila sa bansa.
Tinatago sa bank sa ibang bansa. Pag hindi sumunod dito, may parusa, kulong.

Negotiable Instruments
 Section 1 – Negotiability
 Kinds of indorsement and how one does indorsement?
 Order instrument – instrument payable to order
How do you negotiate? = by indorsement and delivery
Example: Pay to the order of Y
Gusto i-negotiate ni Y kay X, Y should indorse it with X. Signed Y and deliver the instrument to X.
 Bearer instrument
How do you negotiate? = by mere delivery
Example: Pay to bearer.
A wants to negotiate it to B. There is no need for indorsement just deliver it to B. Kung sino may dala ng
instrument yun ang babayaran.
 How to convert order instrument to bearer instrument = when the last indorsement is in blank
Example: Pay to X or order (order instrument)
– X wants it to indorse it to Y
Pay to Y signed X, then deliver.
– Y wants to indorse it to O
 Signed Y, without indicating the name of indorsee (blank indorsement)
– If O wants to further negotiate it to M, he does not mean to indorse it, just deliver the instrument to
M
 Conditional indorsement and Special Indorsement
Pay Y Signed X –– Special
How to convert this to conditional?
Pay to Y if he pass the exam –– subject to a contingent (passing of Y)
NOTE: Conditional indorsement does not violate section 1 b (negotiability). It is still unconditional, ang
condition ay nasa indorsement.
 Restrictive Indorsement
Lalagyan mo lang ng only. It prohibits or restricts further negotiation.
Example: Pay to Y only or Pay only to Y
 Qualified indorsement
With qualification on the part of the indorsement, indorser (for example). It has recourse or without
recourse. Walang hababulin sa indorser.
 Agent is not always liable to the instrument
o He is liable if he failed to disclose his principal
o Sabihin mo kung sino hahabulin, kung di mo sinabi ikaw ang hahabulin
o If the agent fails to disclose the name of his principal, the agent is liable as a general indorser
 Striking out of indorsement
123456
Si 6 kinancel niya si 3. Ang epekto, from 3-5 not liable na. Those who are not important to his claim pwede
na niyangi i-cancel yung indorsement na yon
 Who are the Primarily liable & secondary liable parties, & what are their warrants
Example: Si joey sa bill of exchange (drawee), is he liable to the instrument prior to acceptance?
ANS: NO, hindi naman siya naglagay ng name niya and he does not sign the instrument. He is
not liable. Malay ba natin kung totong kilala niya si drawer or not. But if he accepts the
instrument upon presentment, then the drawee becomes the primary party in a bill of
exchange. And he warrants the capacity of the drawer before the instrument and the
genuineness of the signature, and the existence of the payee & its capacity to due course
 He admits the capacity of the drawer to draw the instrument
 Promissory note
Maker – primary liable party
The rests are secondary liable
 Ilan presentment sa promissory note?
ANS: 1, presentment for payment
Ilan presentment sa bill of exchange?
ANS: 2, presentment for acceptance & presentment for payment
For instance: Ang check, pinagsasabay presentment for acceptance and payment sa bank

 Real & Personal Defense

Sino gumagamit ng defense? Yung nag-eenforce ng instrument or yung sinisingil?
ANS: Sinisingil, kailangan nila yon para hindi sila masingil
 Yung naninigil ay offense, defense sa sinisingil
o Real defense
– pwedeng gamitin ng mga sinisingil against any holder, whether HIDC or HNIDC
– What are those real defense which are attached in the instrument itself and can be used against any
holder
1. Forgery (forced signature)
– Inoperative & nobody has the right to own the instrument and indorse it
2. Incomplete & undelivered
3. If the contract is void (Illegality of contract)
– Null and void, no force no effect
– It creates no right