August 22, 2016

The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) approved to prohibit Rural Bank of Claveria (Cagayan), Inc. from doing business in the Philippines by virtue of MB Resolution No. 1464.A dated August 18, 2016. It 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 August 19, 2016.

Rural Bank of Claveria is a single-unit rural bank with head office located at #43, Gen. Claveria St., Brgy. Centro III, Claveria, Cagayan. Based on the Bank Information Sheet filed by the bank with the PDIC as of June 30, 2016, Rural Bank of Claveria is owned by Luz E. Taganas (68.07%), Helen E. Taganas (23.66%), and Luz M. Dizon (5.05%). The Bank's President and Chairman is Luz E. Taganas.

Latest available records show that as of June 30, 2016, Rural Bank of Claveria had 3,010 accounts with total deposit liabilities of PHP98.3 million. Total insured deposits amounted to PHP91.9 million involving 93.5% of total deposit accounts.

PDIC said that during the takeover, all bank records shall be gathered, verified and validated. The state deposit insurer assured depositors that all valid deposits shall be paid up to the maximum deposit insurance coverage of PHP500,000.00.

Depositors with valid deposit accounts with balances of PHP100,000.00 and below shall be eligible for early payment and need not file deposit insurance claims, except accounts maintained by business entities, or when they have outstanding obligations with Rural Bank of Claveria or acted as co-makers of these obligations. Depositors have to ensure that they have complete and updated addresses with the bank. PDIC will start mailing payments to concerned depositors at their addresses recorded in the bank by the last week of August 2016.

Depositors may update their addresses until August 25, 2016 using the Mailing Address Update Forms to be distributed by PDIC representatives at the bank premises.

For depositors that are required to file deposit insurance claims, the PDIC will start claims settlement operations for these accounts by the second week of September 2016. Depositors are advised to be ready to present the original copy of their evidence of deposit such as savings passbook, certificate of time deposit, unused checks or latest bank statement; and two (2) original valid photo-bearing identification documents (IDs) which are basic requirements in filing deposit insurance claims. PDIC may require additional documents in the course of claims processing.

The PDIC also announced that it will conduct a Depositors-Borrowers' Forum on August 31, 2016. All depositors, borrowers and creditors of the bank are enjoined to attend the Forum to verify with PDIC representatives if they are eligible for early payment and the manner of paying their loan obligations with the bank. Those not eligible will be informed of the requirements and procedures for filing deposit insurance claims. The time and venue of the Forum will be posted in the bank's premises and announced in the PDIC website, www.pdic.gov.ph. Likewise, the schedule of the claims settlement operations, as well as the requirements and procedures for filing claims will be announced through notices to be posted in the bank premises, other public places and the PDIC website.

Rural Bank of Claveria is the fourth bank to be ordered closed by the MB following the effectivity on June 11, 2016 of Republic Act No. 10846 that amended the PDIC Charter.

For more information, depositors may communicate with PDIC Public Assistance personnel stationed at the bank premises. They may also call the PDIC Toll Free Hotline at 1-800-1-888-PDIC (7342), the PDIC Public Assistance Hotlines at (02) 841-4630 to (02) 841-4631, or send their e-mail to pad@pdic.gov.ph.

Rural Bank of Claveria in Claveria, Cagayan.

* * * * *

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.