December 9, 2016

The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) prohibited Eastern Rizal (Jalajala) Rural Bank, Inc. from doing business in the Philippines. Under Resolution No. 2180.A dated December 8, 2016, the MB directed the Philippine Deposit Insurance Corporation (PDIC) as Receiver to proceed with the takeover and liquidation of the bank. PDIC took over the bank on December 9, 2016.

Eastern Rizal (Jalajala) Rural Bank is a three-unit rural bank with Head Office located at C. Villaran St., Jalajala, Rizal. Its two branches are located in Cainta, Rizal and Marikina City. Based on the Bank Information Sheet filed by the bank with the PDIC as of June 30, 2016, Eastern Rizal (Jalajala) Rural Bank is owned by Maribel V. Serrano (29.57%), Ramon F. Villavicencio (29.42%), Mary Ann V. Sy (28.02%), and Hedley O. Serrano (8.21%). The Bank's President and Chairman is Maribel V. Serrano.

Latest available records show that as of September 30, 2016, Eastern Rizal (Jalajala) Rural Bank had 3,216 accounts with total deposit liabilities of PHP47.8 million. Total insured deposits amounted to PHP47.4 million involving 99.1% of total deposit accounts.

PDIC assured depositors that all valid deposits and claims shall be paid up to the maximum deposit insurance coverage of PHP500,000.

Recognizing the need for depositors to have immediate access to their insured deposits during the yuletide season, the state deposit insurer initiated a special pay-out procedure which will give the depositors of the bank an opportunity to claim their deposit insurance before Christmas. Instead of PDIC's usual process of mailing deposit insurance payments to depositors with bank balances of PHP100,000 and below, these depositors may directly claim their deposit insurance at the bank's Head Office in Jalajala, Rizal or at its Cainta Branch, on December 19 to 22, 2016 . Depositors whose balances are over PHP100,000 may also claim their deposit insurance during this period.

Depositors with deposits PHP100,000 and below who were unable to file their deposit insurance claims during said schedule will be paid either through postal money order mailed to their addresses subject to the following conditions: they are eligible for early payment, they have no accounts maintained by business entities, they have no outstanding obligations with Eastern Rizal (Jalajala) Rural Bank or acted as co-makers of these obligations, and they have complete and updated addresses with the bank. They may update their addresses until December 15, 2016 using the Mailing Address Update Forms (MAUF) to be distributed by PDIC representatives at the bank premises.

In the case of depositors whose balances are more than PHP100,000, deposit insurance claims may be filed at the PDIC Public Assistance Center, 3/F SSS Building, 6782 Ayala Avenue corner V. A. Rufino St., Makati City starting on December 26, 2016.

For more information on the requirements and procedures for filing claims and settlement of loan obligations, all depositors and borrowers of the bank are enjoined to attend the Depositors-Borrowers' Forum on December 14, 2016, 9:00 a.m. at the San Roque Covered Court, A. Bonifacio Avenue, Cainta, Rizal; and on December 15, 2016, 10:00 a.m. at the Covered Court (Old Municipal Bldg.), C. Villaran St., Jalajala, Rizal.

PDIC also reminded borrowers to continue paying their loan obligations with the closed Eastern Rizal (Jalajala) Rural Bank and for the closed bank's depositors, borrowers, creditors and the public to transact only with designated PDIC representatives at the bank premises.

Depositors may communicate with PDIC Public Assistance personnel stationed at the bank premises or call the PDIC Public Assistance Hotlines at (02) 841-4630 to (02) 841-4631, or send their e-mail to pad@pdic.gov.ph. Depositors outside Metro Manila may also call PDIC at its Toll Free Hotline at 1-800-1-888-PDIC (7342). Inquiries may also be sent via private message to the official PDIC Facebook account at www.facebook.com/OfficialPDIC.

Eastern Rizal (Jalajala) Rural Bank in Jalajala, Rizal.

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The Philippine Deposit Insurance Corporation (PDIC) was established on June 22, 1963 by Republic Act 3591 to provide depositor protection and help maintain stability in the financial system by providing deposit insurance. Effective June 1, 2009, the maximum deposit insurance coverage is P500,000 per depositor. All deposit accounts by a depositor in a closed bank maintained in the same right and capacity shall be added together. A joint account shall be insured separately from any individually-owned deposit account.

PDIC news/press releases and other information are available at the website, www.pdic.gov.ph.