Carmela Jia Ming A.

Wong

BS Accountancy

1. Due to growing financial difficulties, F Bank was unable to finish construction of its 21-
storey building on a prime lot located in Makati City. Thus, the Bangko Sentral ordered the
closure of F Bank and, consequently, placed it under receivership. In a bid to save the bank’s
property investment, the President of F Bank entered into a financing agreement with a group of
investors for the completion of the construction of the 21- storey building in exchange for a ten-
year lease and the exclusive option to purchase the building. Is the act of the President valid?
Why or why not? (5 points)

(Answer 1) No, the bank president’s act is not valid. He had no authority to enter into the
financing agreement. Z Bank was ordered closed and placed under receivership. Control over the
properties of Z Bank passed to the receiver. The appointment of a receiver operates to suspend
the authority of the bank and its officers over the bank’s assets and properties.

2.When MANILA Bank folded up due to insolvency, Bong had the following separate deposits
in his name: P200,000 in savings deposit; P250,000 in time deposit; P50,000 in current account;
P1 million in a trust account and P3 million in money market placement. Under the Philippine
Deposit Insurance Corporation Act, how much could Bong recover? Explain and cite the
applicable legal provision. (5 points)

(Answer 2) Bong can recover the amount of P500,000, as the total of his savings deposit, time
deposit and current account. As amended he trust account and the money market placements are
not included in the insured deposit by Republic Act No.3591 under Section 4, the trust account
and the money market placements are not included in the insured deposits.