“3. On 10 December 2009, pursuant to Monetary Board Resolution No. 1752 of the Bangko Sentral ng Pilipinas (BSP), RB BAUTISTA was placed under receivership of the PDIC, and was prohibited from doing business in the Philippines, after determining that –

“x x x the Rural Bank of Bautista (Pangasinan), Inc. (RB Bautista) (a) is unable to pay its liabilities as they become due in the ordinary course of business; (b) has insufficient realizable assets to meet liabilities; and (c) cannot continue in business without involving probable losses to its depositors and creditors; and considering the failure of the Board of Directors/ management of RB Bautista to restore the bank’s financial health and viability despite considerable time given RB Bautista including the chance to again explore talks with another commercial bank for a ‘white knight’ solution to address RB Bautista’s financial problems, in the light of the assessment of a previous prospective investor that a recapitalization to resolve the serious problems confronting the bank is not workable, for which reason it backed out of the negotiation, and that RB Bautista had been accorded due process x x x”

The photocopy of Monetary Board Resolution No. 1752 dated 10 December 2009 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 BAUTISTA on 11 December 2009.

5. Under Section 30 of Republic Act. 7653, otherwise known as “The New Central Bank Act” petitioner, as the Receiver of ABI, is mandated to determine whether the institution maybe 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 01 July 2010, petitioner reported to the Monetary Board of the Bangko Sentral ng Pilipinas that RB BAUTISTA, at its present financial condition, cannot anymore resume business with safety to its depositors, creditors and the general public. The photocopy of the transmittal letter/report is hereto attached as ANNEX “B”.

7. On 16 July 2010 on the basis of the aforementioned report, the Monetary Board of the BSP issued Resolution No. 975 directing herein petitioner to proceed with the liquidation of RB BAUTISTA in accordance with Section 30 of “The New Central Bank Act”. The photocopy of the Monetary Board Resolution No. 975 is hereto attached as ANNEX “C”.

8. The petition is being filed pursuant to said Section 30 of “the New Central Bank Act”, 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 of 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 institution. “(emphasis and underscoring supplied)”

The petition being in due form and substance, is given due course.

Accordingly, let the petition be heard before this Court on January 27, 2011 at 8:30 o’clock in the morning.

The petitioner is ordered to cause the publication of this Order once in a newspaper of general circulation in the province of Pangasinan and its cities at its expense. Likewise, let this Order be posted in three (3) public places.

All persons who may have a 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 publication.

SO ORDERED

Villasis, Pangasinan, September 13, 2010.