REPUBLIC OF THE PHILIPPINES
REGIONAL TRIAL COURT
6th JUDICIAL REGION
Branch 5
KALIBO, AKLAN

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ORDER

As prayed for by Atty. Saykeme M. Martelino who entered a special appearance for the PDIC, the PDIC is directed to cause a one-time publication of the Petition in a newspaper of general circulation.

Set the initial hearing on AUGUST 12, 2013 at 9 o’clock in the morning.

SO ORDERED.

Open Court, Kalibo, Aklan,
April 15, 2013.

REPUBLIC OF THE PHILIPPINES
REGIONAL TRIAL COURT
6th JUDICIAL REGION
Branch 5
KALIBO, AKLAN

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P E T I T I O N

PETITIONER Philippine Deposit Insurance Corporation (PDIC), by counsel, unto this Honorable Court, respectfully avers —

1. 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 NABAS (“RB NABAS” for brevity).

2. Prior to its closure, RB NABAS was a bank organized and existing in accordance with the laws of the Republic of the Philippines with principal business address located at Poblacion, Nabas, Aklan.

3. On 07 April 2011, pursuant to Monetary Board Resolution No. 515.A of the Bangko Sentral ng Pilipinas (BSP), the Monetary Board prohibited RB NABAS from doing business in the Philippines and placed RB NABAS under the receivership of petitioner, on the following grounds:

“x x x that the Rural Bank of Nabas (Aklan), Inc. (RB Nabas): (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 that the bank had been accorded due process; x x x x.”

The photocopy of Monetary Board Resolution No. 515.A dated 07 April 2011 is attached hereto as ANNEX “A”.

4. Consistent with, and on the strength of said Resolution, the herein petitioner took over the assets and affairs of RB NABAS on 08 April 2011.

5. Under Section 30 of Republic Act 7653, otherwise known as “The New Central Bank Act”, petitioner, as the Receiver of RB NABAS, is mandated to determine whether the institution may be rehabilitated 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 or be placed under liquidation.

6. Pursuant thereto, on 05 December 2011, petitioner reported to the Monetary Board of the BSP that RB NABAS, at its present financial condition, cannot be rehabilitated nor can it be permitted to resume business with safety to its depositors, creditors and the general public. The report is hereto attached as ANNEX “B”.

7. On 19 December 2011, the Monetary Board of the BSP issued Resolution No. 1904 directing herein petitioner to proceed with the liquidation of RB NABAS, the complete text of which reads:

“On the basis of the report on the receivership operations of the Rural Bank of Nabas (Aklan), Inc. prepared by the Philippine Deposit Insurance Corporation (PDIC), as receiver, and transmitted by Mr. Valentin A. Araneta, President, PDIC, in a letter dated 5 December 2011, that the PDIC determined that RB Nabas at its present condition, cannot be rehabilitated nor permitted to resume business with safety to its depositors, creditors and the general public, 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 Nabas of PDIC’s findings; and

2. To direct PDIC to proceed with the liquidation of the aforementioned bank.”

The photocopy of the Monetary Board Resolution No. 1904 dated 19 December 2011 is hereto attached as ANNEX “C”.

8. On 04 January 2012, in compliance with Section 30, supra and Resolution No. 180 of the Monetary Board, BSP notified in writing the individual members of the Board of Directors of RB NABAS of the Monetary Board’s decision to proceed with the Bank’s liquidation. Photocopies of the letters-notification are hereto attached as ANNEXES “D” to “D-4”.

9. 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 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.)

10. Clearly, Section 30, supra, allows the payment of the cost of the proceedings, including reasonable expenses and fees of the receiver from the assets of the closed banking institution.

11. Petitioner as the Statutory Receiver of RB NABAS incurred and/or advanced the amount of P50,000.00 as of 31 July 2011 by way of Receivership Fees and Expenses. The photocopy of the Statement of Affairs of RB NABAS as of 31 July 2011 is attached hereto as Annex “E”.

12. Petitioner hereby 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 20 December 2007 for general application in the liquidation of all closed banking institutions. The photocopy of the Master Receivership/Liquidation Plan for Closed Banks is attached hereto as ANNEX “F”.

13. Petitioner anticipates that in the course of the liquidation of RB NABAS, disputed claims, issues and other matters material or relevant to the liquidation of RB NABAS may arise. Thus, pursuant to the provision of Section 30, supra, herein petitioner seeks the assistance of the Honorable Court in the resolution of the disputed claims and relevant issues.

14. Insofar as relevant to this petition, the Supreme Court held in Pacific Banking Corporation Employees Organization vs. Court of Appeals, et al. (242 SCRA 492):

“A liquidation proceeding is a single proceeding which consists of a number of cases properly classified as claims. It is basically a two-phased proceeding. The first phase is concerned with the approval and disapproval of claims. Upon the approval of the petition seeking the assistance of the court in the liquidation of a closed entity, all money claims against the bank are required to be filed with the liquidation court. This phase may end with the declaration by the court that the claim is not proper or without basis. x x x

The second phase involves the approval of the court of the distribution plan prepared by the duly appointed liquidator. x x x The order finally disposes of the issue of how much property is available for disposal. Moreover, it ushers in the final phase of the liquidation proceeding, payment of all allowed claims in accordance with the order of legal priority and the approved liquidation plan.” (Underscoring and emphasis supplied.)

P R A Y E R

WHEREFORE, premises considered, it is respectfully prayed that the Honorable Court -

1. After finding the instant Petition for Assistance in the Liquidation of RB NABAS to be sufficient in form and substance, issue an Order:

1. DIRECTING the petitioner PDIC to cause the posting in three (3) public places and the one-time publication in a newspaper of general circulation of the Honorable Court’s Order;

2. SETTING the date and time for the initial hearing; and

3. DIRECTING those who may have a claim against the assets of the Bank to file their respective claims with the petitioner within ninety (90) days from the date of publication of the above-mentioned Order.

2. Thereafter, upon submission of proof of jurisdictional requirements, that an Order be issued by the Honorable Court GIVING DUE COURSE to the instant Petition for Assistance in the Liquidation of RB NABAS, and

3. Approving the reimbursement to the petitioner of the receivership fees and expenses as set forth in paragraph 11 once the petition is given due course.

Such other relief and remedies as are just and equitable under the circumstances are likewise prayed for.

Makati City for Kalibo, Aklan, 12 October 2012.

OFFICE OF THE GENERAL COUNSEL
PHILIPPINE DEPOSIT INSURANCE CORPORATION
6782 Ayala Avenue cor. Rufino Street, SSS Bldg., Makati City
Tel. No. 8414000; Fax No. 8414136
www.pdic.gov.ph

By:

ORIGINAL SIGNED
ROMEO M. MENDOZA, JR.
General Counsel
IBP Lifetime Roll No. 07053; 12.19.07; Makati
Roll of Attorney No. 36473
MCLE Compliance No. III –0015775; 05.13.10

ORIGINAL SIGNED
MA. ANTONETTE BRILLANTES BOLIVAR
IBP OR No. 873955; 12.14.11; Manila III Chapter
Roll of Attorney No. 38269
MCLE Compliance No. III-0015722; 05.13.10

ORIGINAL SIGNED
MYLENE S. FARIÑAS-PASAMBA
IBP O.R. No.873966; 12.14.11; Quezon City
Roll of Attorney No. 40716
MCLE Compliance No. III-0015777; 05.13.10

ORIGINAL SIGNED
VERONICA TONGIO-IGOT
IBP O.R. No. 877829; 1.04.12; Makati City
Roll of Attorney No. 51151
MCLE Compliance Cert. No. III-0008411; 02.09.10

Republic of the Philippines)
Makati City ) S.S.

VERIFICATION AND CERTIFICATION
OF NON FORUM SHOPPING

I, IMELDA R. SALGADO, Filipino, of legal age, with office address at the 5th floor, PDIC Ayala Extension Office, SSS Building, Ayala Avenue corner V.A. Rufino Street, Makati City, after having been duly sworn in accordance with law, do hereby depose and state:

1. I am the Department Manager of the Receivership and Bank Management Department (RBMD) III, which is in charge of the over-all supervision of the liquidation of RB NABAS. As such, I have the authority to sign and verify pleadings pursuant to PDIC Board Resolution No. 2005-01-017 (ANNEX “A - Verification”);

2. I have caused the preparation of the foregoing petition entitled "Petition for Assistance in the Liquidation of Rural Bank of Nabas (Aklan), Inc.”; and have read the same and that the allegations therein contained are true and correct based on authentic records of the bank; and that I have not heretofore directed the commencement of any other action or proceeding involving the same issues in the Supreme Court, the Court of Appeals, or any other tribunal or agency;

3. To the best of my knowledge, no other action or proceeding is pending in the Supreme Court, or any other tribunal or agency;

4. And should I thereafter learn that a similar action or proceeding has been file or is pending before the Supreme Court, the Court of Appeals, or any other tribunal or agency, I undertake to report that fact within five (5) days therefrom to this Honorable Office.

SUBSCRIBED AND SWORN to before me this OCT. 31, 2012 day of March 2012, in the City of Makati, affiant exhibiting to me her Employee I.D. No. 083 issued by the PDIC.