Republic of the Philippines
REGIONAL TRIAL COURT
Branch 10
Eight Judicial Region
Abuyog, Leyte

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O R D E R

A verified PETITION FOR ASSISTANCE IN THE BANK LIQUIDATION OF RURAL BANK OF JAVIER (LEYTE), INC., filed by PHILIPPINE DEPOSIT INSURANCE CORPORATION (PDIC), petitioner through counsel, alleges:

That petitioner, a government instrumentality, with office address at the SSS Building, 6782 Ayala Avenue corner V.A. Rufino Street 1228 Makati City, created and existing under and by virtue of Republic Act No. 3591, as amended, is the designated Statutory Liquidator of the RURAL BANK OF JAVIER (LEYTE), INC. (RBJI) where they may be served with summons and other processes by this Honorable Court:

That prior to its closure, RBJI was a bank organized and existing in accordance with the laws of the Republic of the Philippines with principal business address located at Zone II, Javier, Leyte:

That on June 7, 2012, pursuant to Monetary Board Resolution No. 914 of the Bangko Sentral ng Pilipinas (BSP), the Monetary Board prohibited RBJI from doing business in the Philippines and placed it under receivership of petitioner on the following grounds:

“xxx that the Rural Bank of Javier (Leyte), Inc. (RB Javier): (a) has insufficient realizable assets to meet its liabilities; and (b) cannot continue in business without involving probable losses to its depositors and creditors, and considering the failure of RB Javier’s Board of Directors/Management to cause the infusion of the required capital and to restore Bank’s financial health and viability despite considerable time given and that RB Javier had been accorded due process, x x x”

That consistent with, and on the strength of the said resolution, the petitioner took over the assets and affairs of RBJI on June 8, 2012;

That under Section 30 of Republic Act No. 7653, otherwise known as “The New Central Bank Act”, petitioner, as a receiver of RBJI, is mandated to determine whether the institution may be rehabilitated or otherwise placed in such condition so that it may be permitted to resume business with safety to its depositors and creditors and the general public or be placed under liquidation;

That pursuant thereto, on October 9, 2012, petitioner reported to the Monetary Board of the BSP that RBJI, at its present financial condition, cannot be rehabilitated nor it can be permitted to resume business with safety to its depositors, creditors and the general public;

That on October 18, 2012, the Monetary Board of the BSP issued Resolution No. 1748 directing herein petitioner to proceed with the liquidation of RBJI, the complete text of which reads:

“On the basis of the report on the receivership operation of the Rural Bank of Javier (Leyte), Inc. (RB Javier) prepared by the Philippine Deposit Insurance Corporation (PDIC), as receiver, and transmitted by Mr. Valentin A. Araneta, President, PDIC, in a letter dated 09 October 2012, that the PDIC determined that RB Javier cannot be rehabilitated, the Board, in accordance with Section 30 of Republic Act No. 7653 (The New Central Bank Act), decided as follows:

1. To instruct management to notify in writing the Board of Directors of RB Javier of PDIC findings; and
2. To direct PDIC to proceed with the liquidation of the aforementioned Bank

That on October 29, 2012, in compliance with Section 30, supra and Resolution No. 1748 of the Monetary Board, BSP notified in writing the individual member of the Board of Directors of RBJI of the Monetary Board’s decision to proceed with the Bank’s liquidation;

That this petition is being filed pursuant to Section 30, supra, the relevant portion of which states that:

“x x x The receiver shall : (1) file ex parte with the proper regional trial court, and without requirement of prior notice or any action, a petition for assistance in the liquidation of the institution pursuant to a liquidation plan adopted by the Philippine Deposit Insurance Corporation for general application to all closed banks.”

“x x x Upon acquiring jurisdiction, the court shall upon motion of the receiver after due notice, adjudicate disputed claims against the institution, assist the enforcement of individual liabilities of the stockholders, directors and officers and decide on the other issues as may be material to implement the liquidation plan adopted. The receiver shall pay the cost of the proceedings from the assets of the institution.” (Underscoring and emphasis supplied)

That clearly, Section 30, supra, allows the payment of the cost of proceedings, including reasonable expenses and fees of the receiver from the assets of the closed banking institution;

The Petitioner as the Statutory Receiver of RBJI incurred and/or advanced the amount of P100,000.00 as of July 31, 2012 by way of Receivership & Liquidation expenses;

That the Petitioner hereby submits a copy of the Master Receiver/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 banking institutions;

That the Petitioner anticipate that in the course of the liquidation of RBJI, disputed claims, issues and other matters material or relevant to the liquidation of RBJI may arise. Thus, pursuant to the provision of Section 30, supra, herein petitioner seeks the assistance of this Honorable Court in the resolution of the disputed claims and relevant issues;

Finding the petition to be sufficient in form and substance, let the hearing of this case be set for July 15, 2013 at 8:30 o’clock in the morning, before this Court.

Let copy of this Order be published once in a newspaper of general circulation and that the same together with the petition, be posted in three (3) conspicuous public places in the Municipality of Javier, Leyte, all at the expense of herein petitioner;

All persons who may have claim may file their respective claims with the petitioner within ninety (90) days from the date of publication of this Order;

The Clerk of Court is directed to furnish copy of this Order and Petition to the Office of the Solicitor General at 134 Amorsolo St., Legaspi Village, Makati City;

SO ORDERED.

Abuyog, Leyte, March 6, 2013.