THE Bangko Sentral ng Pilipinas (BSP) has ordered an Iligan City-based rural bank closed and placed under receivership of the state-run deposit insurer.
In a circular, the BSP stopped the single-unit Rural Bank of Iligan City from doing business in the Philippines, with its assets and affairs placed under the control of Philippine Deposit Insurance Corp. (PDIC) on April 21.
Depositors of closed banks under PDIC receivership are entitled to recoup up to a maximum of P500,000, the mandated insurance coverage under the PDIC .
As of December 31, 2016, the rural bank had 394 deposit accounts with total deposit liabilities of P27.9 million. The amount of deposits insured is P13.2 million or 47.2 percent of total deposits.
According to the PDIC, depositors with valid deposit accounts of P100,000 and below are eligible for early payment and need not file deposit insurance claims, except when they have outstanding obligations with the closed bank or acted as co-makers of obligations and have incomplete or have not updated their addresses.
Depositors have until April 27, 2017 to update their records using forms to be distributed by PDIC representatives at the rural bank’s premises. The PDIC also said it would conduct a depositors-borrowers forum on May 4, 2017.
“Please be informed that upon placement of the bank under liquidation, the powers, functions and duties of the directors, officers and stockholders of the bank are terminated. Accordingly, the directors, officers, and stockholders shall be barred from interfering in any way with the assets, records and affairs of the Bank,” the PDIC said.
“Therefore, should you be in possession of any asset and records of the closed Rural Bank of Iligan City Inc., you are advised not to allow or honor any transaction affecting the same without the consent of the receiver and to immediately turnover the assets and records to the deputy receiver at the address provided below,” it added.
All assets of the bank are deemed in custodia legis in the hands of the receiver and may not be subject to attachment, garnishment, execution, levy or any other court processes.
The rural bank the fifth bank placed under PDIC receivership this year.
In 2016, the Monetary Board closed and placed under PDIC 22 receivership. In 2015 it shuttered 14 banks.