October 25, 2016

The Philippine Deposit Insurance Corporation (PDIC) will start the claims settlement operations for the closed Rural Bank of Luna (Isabela), Inc. today, October 25, 2016 until October 28, 2016. Special procedures to pay in cash will be adopted to provide depositors, who have been affected by the recent typhoons that hit the province of Isabela, immediate access to their insured deposits. RB Luna was ordered closed by the Monetary Board on October 6, 2016.

Servicing of claims for the depositors of the Head Office will be conducted at the bank's premises located in Harana, Luna, Isabela, starting October 25, 2016 while servicing of claims for depositors of the Sta. Maria Branch will be at its office premises located in Santa Maria, Isabela starting October 27, 2016. PDIC representatives will be in the banking units from 8:00 AM to 5:00 PM. Payout period shall end on October 28, 2016. Depositors are advised to proceed to the premises of the banking unit where their deposits are maintained.

Filing of claims is waived for depositors with valid deposit balances of PHP100,000 and below; who have no outstanding loans or payables to the bank, and who have updated and complete mailing address in the bank records or updated through the PDIC-provided Mailing Address Update Form (MAUF). Instead of the standard procedure where payment is sent to the depositors via Postal Money Orders (PMO) mailed to their addresses, deposit insurance will be paid in cash upon presentation of the depositor to the PDIC Claims Team of at least two (2) valid original photo-bearing IDs. After October 28, 2016, all depositors not required to file claims who did not go to the bank, shall receive their deposit insurance payment in the form of PMOs which will be mailed to the depositor's addresses indicated in the bank records or in the MAUF.

All other depositors, regardless of the type of their account or account balance, have to file deposit insurance claims. These include depositors with account balances of more than PHP100,000; those with outstanding loans or payables to the bank either as borrower, co-maker or spouse of borrower; and those with incomplete addresses. Depositors whose accounts are under the name of business entities also need to file claims.

Depositors who are not able to file their claims during the claims settlement operations period in the bank site may submit their claims either through mail to PDIC or personally at the PDIC Public Assistance Center, 3rd Floor, SSS Bldg., 6782 Ayala Avenue corner V.A. Rufino Street, Makati City starting on November 7, 2016.

In accordance with the provisions of the PDIC Charter, the last day for filing deposit insurance claims in the closed Rural Bank of Luna (Isabela), Inc. is on October 8, 2018. After this date, PDIC as Deposit Insurer shall no longer accept any Rural Bank of Luna (Isabela), Inc. deposit insurance claims.

The PDIC said that all valid claims will be paid. As a rule, a claim is valid if it is filed by a depositor or claimant with valid identification, and such claim is duly evidenced by a passbook, certificate of time deposit or other evidence of deposit, or otherwise supported by the records of the bank. PDIC, as Receiver, has the authority to adjust the interest rate on unpaid interests on deposits of a bank if such rate is deemed unreasonable.

Meanwhile, claims of persons or entities against the assets of the closed bank must be filed with the Deputy Receiver of the bank either at the bank premises not later than October 28, 2016, or at the PDIC Public Assistance Center (PAC), up to December 12, 2016. Claims filed after December 12, 2016 shall no longer be considered.

For depositors of the bank with deposits that exceed PHP500,000, the claim for the uninsured portion of their deposits is deemed filed with the Deputy Receiver of the bank upon filing of claim for deposit insurance Thus, there is no need for the depositor to file a separate claim for the uninsured portion.

For more information on the payout process and requirements, depositors may contact the Public Assistance Department at telephone numbers (02) 841-4630 to 31, or e-mail at pad@pdic.gov.ph. Depositors outside Metro Manila may call the PDIC Toll Free Hotline at 1-800-1-888-PDIC (7342). The procedures and requirements for filing of deposit insurance claims are also posted in the PDIC website, www.pdic.gov.ph. The Claim Form and format of the Special Power of Attorney (SPA) may also be downloaded free of charge from the PDIC website.

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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.