REPUBLIC OF THE PHILIPPINES
REGIONAL TRIAL COURT OF BOHOL
7th JUDICIAL REGION
Branch 49
City of Tagbilaran

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ORDER

Before this court is a verified petition for assistance in the liquidation of BANK OF CALAPE SAVINGS BANK & MORTGAGE BANK.

The petition 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 BANK OF CALAPE SAVINGS BANK & MORTGAGE BANK (“BCSMB” for brevity); that prior to its closure, BCSMB was a bank organized and existing in accordance with the laws of the Republic of the Philippines with the principal business address located at Poblacion, Calape, Bohol; that on July 29,2011, pursuant to Monetary Board Resolution No. 1122 of the Bangko Sentral ng Pilipinas (BSP), BCSMB was placed under the receivership of the petitioner, on the following grounds: “that Bank of Calape (Savings and Mortgage Bank) (Bank of Calape SMB) a) is unable to pay its liabilities as they become due in the ordinary course of business; b) cannot continue in business without involving probable losses to its depositors and creditors, and considering the failure of the Board of Directors and Management of the Bank to restore the Bank’s financial health and viability despite being given considerable time to address the Bank’s financial problems, and that it had been accorded due process; “(The photocopy of Monetary Board Resolution No. 1122 dated July 29, 2011 is attached hereto as Annex “A”); that consistent with, and on the strength of said Resolution, the herein petitioner took over the assets and affairs of BCSMB on July 29, 2011; that under Section 30 of Republic Act 7653, otherwise known as “the New Central Bank Act”, petitioner, as the Receiver of BCSMB, 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; that pursuant thereto, on July 11, 2012, petitioner reported to the Monetary Board of the Bangko Sentral ng Pilipinas that BCSMB, 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. (report is hereto attached as ANNEX “B”; that on July 27, 2012, the Monetary Board of the Bangko Sentral ng Pilipinas issued Resolution No. 1231 directing herein petitioner to proceed with the liquidation of BCSMB, the complete text of which reads: “On the basis of the report on the receivership operations of Bank of Calape Savings and Mortgage Bank (Bank of Calape SMB) prepared by the Philippine Deposit Insurance Corporation (PDIC), as Receiver, and transmitted by Mr. Valentin A. Araneta, President, PDIC, in a letter dated July 11, 2012, that the PDIC determined that Bank of Calape SMB 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 Bank of Calape SMB 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. 1231 dated July 27, 2012 is hereto attached as Annex "C”; that on August 6, 2012, in compliance with Section 30, supra and Resolution No. 1231 of the Monetary Board, BSP notified in writing the individual members of the Board of Directors of BCSMB 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-6”,; This petition is being filed pursuant to Section 30, supra, the relevant portion of which states that - “The receiver shall: (1) file ex parte with the proper regional trial court, and without requirement of prior to 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.’’ 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.”

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;

Petitioner as the Statutory Receiver of BCSMB incurred and/or advanced the amount of P93,303.00 as of 31 December 2011 by way of Receivership Fees and Expenses. The photocopy of the Statement of Affairs of BCSMB as of 31 December 2011 is attached hereto as ANNEX “E”;

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’’;

Petitioner anticipates that in the course of the liquidation of BCSMB, disputed claims, issues and other matters material or relevant to the liquidation of BCSMB 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.

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 and disapproval 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.

The second phase involves the approval of the court of the distribution plan prepared by the duly appointed liquidator. x 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.”

WHEREFORE, finding the petition to be sufficient in form and substance, the same is hereby given DUE COURSE.

Let this petition be set for initial hearing on August 12, 2013 at 8:30 o’clock in the morning.

The public and all persons whose interest maybe adversely affected by the petition are directed to file their opposition thereto with this Court on or before the date set above, otherwise they shall be barred from questioning/opposing the same.

Petitioner is directed to cause the publication of this Order 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 Bohol and in the Municipal Building of Calape, Bohol, for at least two (2) consecutive weeks prior to the date of initial hearing all at the expense of the petitioner.

Furthermore, all persons who have any claim against the assets of the bank are directed to file their respective claims with the petitioner within ninety (90) days from the date of the publication hereof.

SO ORDERED

May 31, 2013, Tagbilaran City, Philippines.