Republic of the Philippines
Fifth Judicial Region
Regional Trial Court
Branch 52
Sorsogon City

O R D E R

Before this Court is a petition for assistance in the liquidation of the RURAL BANK OF BACON (SORSOGON), INC. filed by the Philippine Deposit Insurance Corporation (PDIC).

The following are alleged in the said petition: that petitioner, a government-instrumentality, with principal office address at SSS Building, Ayala Avenue corner V.A. Rufino Street, Makati City, created and existing under and by virtue of Republic Act No. 3591, as amended, is the designated Liquidator of the Rural Bank of Bacon (Sorsogon), Inc. (RB Bacon); that prior to its closure, RB Bacon was a bank organized and existing in accordance with the laws of the Republic of the Philippines with principal business address at Poblacion, Bacon, Sorsogon; that on March 28, 1980, after determining that the financial condition of RB Bacon is one of insolvency and that its continuance in business would involve probable loss to its depositors and creditors, the Monetary Board of the then Central Bank of the Philippines (CBP) adopted Resolution No. 585 ordering its placement under the receivership of the Director, Department of Rural Banks and Savings and Loan Associations (DRBSLA), CBP (a photocopy of Monetary Board Resolution No. 585 dated March 28, 1980 is attached to the petition as Annex “A”); that consistent with, and on the strength of said Resolution, the CBP took over the assets and affairs of RB Bacon; that under Section 29 of Republic Act 265, as amended, otherwise known as “The Central Bank Act”, after the bank has been placed under receivership, the Monetary Board shall determine within sixty (60) days whether the institution may be reorganized or otherwise placed in such a condition so that it may be permitted to resume business with safety to its depositors and creditors and the general public and shall prescribe the conditions under which such resumption of business shall take place as well as the time for fulfillment of such conditions; that pursuant thereto, on August 22, 1980, having determined and confirmed on the basis of the memorandum of the Director, DRBSLA, CBP that RB Bacon can no longer resume business with safety to depositors, creditors and the general public, the Monetary Board of the then CBP issued Resolution No. 1513 ordering the liquidation of RB Bacon. The Director, DRBSLA, CBP was designated as the Liquidator (a photocopy of Monetary Board Resolution No. 1513 is attached to the petition as Annex “B”); that on July 6, 1981, CBP, through Consolacion V. Odra, filed with the Regional Trial Court of Sorsogon City, Branch 51, a petition docketed as SP. Proc. No. 3807, in accordance with the mandate of Section 29, of R.A. 265, the law applicable at that time, with the purpose of constituting the Liquidation Court of RB Bacon; that however, in June 1993, R.A. 7653 also known as “The New Central Bank Act” was enacted repealing Section 29 of R.A. 265; that based therefrom, the herein petitioner PDIC was designated as the Statutory Receiver/Liquidator of all closed banks; thus, on September 15, 1993, the Monetary Board of then CBP issued Resolution No. 261 approving the designation of PDIC as receiver/liquidator, vice CBP, of 15 thrift banks and 184 rural banks, RB Bacon included (a photocopy of the Monetary Board Resolution No. 261 is attached to the petition as Annex “C”); that when petitioner PDIC took over the affairs of RB Bacon, it discovered that the records of Sp. Proc. No. 3807 turned over to PDIC were incomplete and the missing records could no longer be found notwithstanding diligent efforts exerted; that on October 29, 2009, the petitioner PDIC filed a Motion to Withdraw Petition in Sp. Proc. No. 3807, the motion to withdraw is hinged on the fact that the reconstitution of the complete records of Sp. Proc. No. 3807, pursuant to act. No. 3110 is not feasible; that the Honorable Court, in its Order dated October 3, 2011, granted the Motion (a photocopy of the said Order is attached to the petition as Annex “D”); that petitioner has no other recourse but to refile the petition; that the petition is being refiled pursuant to Section 30 of Republic Act No. 7653; that consistent therewith, petitioner submits a copy of the Master Receivership/Liquidation Plan for Closed Banks, which was duly adopted and approved by its Board of Directors in Resolution No. 2007-12-07 dated December 20, 2007 for general application in the liquidation of all closed bnking institutions (a photocopy of the MRLP is attached to the petition as Annex “E”).

Finding the petition to be sufficient in form and substance, the same is hereby given due course. Set the initial hearing of this case on April 11, 2012 at 8:30 in the morning.

Cause the prompt publication of this Order at the expense of the petitioner once in a newspaper of general circulation, and the posting hereof by the Deputy Sheriff of the Court at the Bulletin Board of this Court, at the Provincial Capitol Building of the Province of Sorsogon, in the City Hall of the Sorsogon City and in the Sangguniang Panlungsod Building (old Municipal Building of Bacon, Sorsogon), Bacon District, Sorsogon City, for at least two (2) consecutive weeks prior to the date of the initial hearing.

SO ORDERED.

Given this 24th day of January, 2012 at Sorsogon City, Philippines.