Republic of the Philippines
REGIONAL TRIAL COURT
First Judicial Region
BRANCH 65-LAOAG CITY

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O R D E R

Philippine Deposit Insurance Corporation (PDIC), a Government instrumentality with principal office address at SSS Building, Ayala Avenue corner V. A. Rufino Street, Makati City, filed before this Court a Petition for Assistance in the Liquidation of Rural Bank of Sarrat (Ilocos Norte), Inc. (RB Sarrat), a bank organized and existing in accordance with the laws of the Republic of the Philippines, with principal office address at Magsaysay Street, Poblacion, Sarrat, Ilocos Norte.

Deducted from the allegations: petitioner PDIC was designated liquidator of RB Sarrat; RB Sarrat, pursuant to Monetary Board Resolution No. 1613 of the Bangko Sentral ng Pilipinas, was placed under receivership of the petitioner and prohibited from doing business in the Philippines after determining that RB Sarrat: “(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 business without involving probable losses to its depositors and creditors; and considering the failure of the Board of Directors/management of RB Sarrat to restore the bank’s financial health bank/financial problems, and that the bank had been accorded due process, xxx”; PDIC took over the assets and affairs of RB Sarrat; PDIC as receiver reported to the BSP Monetary Board on March 23, 2010 that “RB Sarrat can no longer resume business with safety to its depositors, creditors and the general public” (page 3, petition), and on the basis of said report the Monetary Board issued Resolution No. 489 directing PDIC to proceed with the liquidation of RB Sarrat; and, the petition of PDIC for assistance in the liquidation of RB Sarrat is consistent with the liquidation plan duly adopted and approved by PDIC’s Board of Directors in Resolution No. 2007-12-207 dated December 20, 2007 for general application of closed banks.

WHEREFORE, finding the petition appearing to be sufficient in form and substance, the same is hereby given due course. The petitioner is directed to cause the posting of this Order in public places, namely: 1. the Bulletin Board of Regional Trial Court, Laoag City; 2. Premises of Rural Bank of Sarrat; and 3. Provincial Capitol of Ilocos Norte and Municipal Hall of Sarrat, Ilocos Norte; and to cause its publication once a week in a newspaper of general circulation.

Initial hearing is hereby set on May 3, 2011, at 9:00 o’clock in the morning. All persons who have interest/claim against the Rural Bank of Sarrat are directed to file their respective claims with the petitioner within ninety (90) days following the last publication of this Order.

SO ORDERED.

Done in the City of Laoag, this 12^th day of January, 2011.