Republic of the Philippines
Fifth Judicial Region
REGIONAL TRIAL COURT
BRANCH 52
Sorsogon City

AMENDED ORDER

Before this Court is a petition for assistance in the liquidation of the RURAL BANK OF MAGALLANES (SORSOGON), INC. filed by the Philippine Deposit Insurance Corporation (PDIC).

The following are alleged in the said petition: that petitioner, a government instrumentality, with principal address at SSS Building, Ayala Avenue corner V.A. Rufino Street, Makati City, created and existing under and by virtue of Republic Act No. 3591, as amended (PDIC Charter), is the designated liquidator of the Rural Bank of Magallanes (Sorsogon), Inc. (RB Magallanes); that prior to its closure, RB Magallanes was a bank organized and existing in accordance with the laws of the Republic of the Philippines with principal address at Sorsogon City; that on September 12, 1986, pursuant to Monetary Board Resolution No. 825 of the then Central Bank of the Philippines (CBP), RB Magallanes was ordered closed and placed under receivership of the then Director of Supervision and Examination Sector (SES), Department III, CBP, and was prohibited from doing business in the Philippines, after determining that “x x x the rural bank is in a state of insolvency and its continuance in business would involve probable losses to its depositors and creditors x x x” ( a photocopy of Monetary Board Resolution No. 825 dated 12 September 1986 is attached to the petition as Annex “A”); that consistent with, and on the strength of said Resolution, the CBP took over the assets and affairs of RB Magallanes; that under Section 29 of then Republic Act 265, as amended, otherwise known as “The Central Bank Act”, after the bank has been placed under receivership, the Monetary Board shall determine within sixty (60) days whether the institution may be reorganized 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 and shall prescribe the conditions under which such resumption of business shall take place as well as the time for fulfillment of such conditions; that pursuant thereto, on 18 December 1987, having determined and confirmed on the basis of the memorandum of the Special Assistant to the Governor and Head, Supervision and Examination Sector (SES) Department III, that RB Magallanes can no longer resume business with safety to depositors, creditors and the general public, the Monetary Board of the then CBP issued Resolution No. 1274 ordering the liquidation of RB Magallanes. The Governor and Head, SES Department III was designated as the Liquidator (a photocopy of Monetary Board Resolution No. 1274 is attached the the petition as Annex “B”); that on 21 October, 1988, CBP, through Consolacion v. Odra, filed a petition docketed as Sp. Proc. No. 5416, in accordance with the mandate of Section 29, of RA No. 265, the law applicable at that time, with the purpose of constituting the Liquidation Court of RB Magallanes; that however, in June 1993, RA No. 7653 also known as “The New Central Bank Act” was enacted repealing Section 29 of RA No. 265; that based therefrom, the herein petitioner PDIC was designated as the Statutory Receiver/ Liquidator of all closed banks; thus, on September 15, 1993, the Monetary Board of then CBP issued Resolution No. 261 approving the designation as receiver/ liquidator of PDIC vice CBP of 15 thrift banks and 184 rural banks, RB Magallanes included (a certified true photocopy of Monetary Board Resolution No. 261 is attached to the petition as Annex “C”); that when petitioner PDIC took over the affairs of RB Magallanes, it discovered that the complete records of Sp Proc No. 5416 could no longer be found notwithstanding diligent efforts; that on August 4, 2010, petitioner PDIC filed a Motion for Substitution and Withdraw Petition in Sp Proc No. 5416 hinged on the fact that the reconstitution of the complete records of Sp Proc No. 5416, pursuant to Act No. 3110 is not feasible; that the Honorable Court, in its order dated 23 August, 2010 granted the Motion (a photocopy of the said Order is attached to the petition as Annex “D”); that the instant petition is being refiled pursuant to Section 30 of RA No. 7653; that consistent therewith, the petitioner 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 ( a copy of the MRLP is attached to the petition as Annex “E”).

Finding the petition to be sufficient in form and substance, the same is hereby given due course. Set the initial hearing of this case on May 11, 2011 at 8:30 in the morning.

Cause the prompt publication of this Order at the expense of the petitioner 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 Sorsogon, and in the Municipal Building of Magallanes, Sorsogon, for at least two (2) consecutive weeks prior to the date of the initial hearing.

SO ORDERED.

Given in Chambers this 2nd day of March, 2011 at Sorsogon City, Philippines.