REPUBLIC OF THE PHILIPPINES

REGIONAL TRIAL COURT

FOURTH JUDICIAL REGION

BRANCH 9,

BALAYAN, BATANGAS

IN RE;

ASSISTANCE IN THE

LIQUIDATION OF RURAL BANK

OF BALAYAN (BATANGAS), INC.

Proc. No. 4331

PHILIPPINE DEPOSIT INSURANCE

CORPORATION,

Petitioner

X--------------------------------------------X

ORDER

Before this Court is an Ex Parte Petition for Assistance in the Liquidation of Rural Bank of Balayan, (Batangas) Inc., filed by Philippine Deposit Insurance Corporation pursuant to R. A. No. 7653 otherwise known as the New Central Bank Act.

When the instant petition was called for initial hearing on September 28, 2004 counsel for the petitioner, Atty. Arnulfo Arias was present and the petition was called in pen court if there is any oppositor but nobody appeared to oppose the same. Thereafter, the petition was reset for hearing on October 20, 2004 since the Presiding Judge was on official leave. On October 20, 2004 the case was reset on February 28, 2005 since the Presiding Judge was attending the Convention of the Philippine Judges Association. The setting of February 28, 2005 however, was reset again to April 11, 2005 considering that the petitioner and counsel are absent. Thus, on April 11, 2005 hearing, petitioner through counsel proceeded to mark the following documentary evidence to establish the jurisdictional fact of the case to wit:

"Exhibit 'A' -the petition consisting of eight (8) useful pages";

"Exhibit 'B' -Annex 'A' attached to the record of this case, which is the New Central Bank Act. Sec. 30;

"Exhibit 'D' -the Monetary Board Memorandum Minutes dated April 27, 2003, placing Rural Bank of Balayan under receivership;

"Exhibit 'E' -the Receivership Report dated August 7, 2003 which is Annex 'D'

"Exhibit 'E-1' - Certificate of Adoption for Resolution;

"Exhibit 'E-2' - the Recommendation to place the Rural Bank of Tuy and Rural Bank of Balayan under Liquidation;

"Exhibit 'F' - the Order of Liquidation which is Annex 'E';

"Exhibit 'G' - the Order of this Court setting this case for initial hearing dated August 9, 2004;

"Exhibit 'H' - the Affidavit of Publication dated August 27, 2004;

"Exhibit 'H-1' - the signature of the publisher Victorino Dela Pena;

"Exhibit 'I-1' - the Noticed as published appearing on page 4 of the said issue;

"Exhibit 'J' - the issue of Tambuling Batangas dated September 1, 2004;

"Exhibit 'J-1' - the notice as published in page 4 thereof;

"Exhibit 'K' - the issue of Tambuling Batangas dated September 8, 2004;

"Exhibit 'K-1' the notice as published in page 4 thereof".

Thereafter, as prayed for by the petitioner through counsel, the reception of evidence ex-parte was delegated to the Branch Clerk of Court.

From petitioner's documentary evidence, it has been established that Rural Bank of Balayan ( Batangas), Inc. cannot resume business with safety to their depositors other creditors and the general public and that it cannot be rehabilitated per Resolution No. 2003-07-015 issued by Philippine Deposit Insurance Corporation, the petitioner receiver of the subject bank. Pursuant to the said resolution, the Monetary Board of the Bangko Sentral ng Pilipinas issued an Order dated August 14, 2003 through the Acting Secretary Juan De Zuniga Jr., marked as Exhibit "F" directing the receiver to proceed with the liquidation of the subject bank.

Under Sec. 30 of the New Central Bank Act it provides that:hat:

"Sec. 30. Proceedings in Receivership and Liquidation."

XXX XXX XXX

If the receiver determines that the institution cannot be rehabilitated or permitted to resume business in accordance with the next preceeding paragraph, the Monetary Board shall notify in writing the board of directors of its findings and direct the receiver to proceed with the liquidation of the institution. The receiver shall:

(1) file ex-parte with the proper Regional Trial Court, and without requirement of prior notice or any other 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 for closed banks"...

In view of the foregoing, this Court finds the Ex-Parte Petition for Assistance in Liquidation of Rural Bank of Balayan (Batangas), Inc., in order and the same is hereby GRANTED . There receiver is hereby enjoined to comply strictly with the Master Liquidation Plan for Closed Banks.

Accordingly, pursuant to a Master Liquidation Plan for Closed Banks, let a copy of this Order be published once a week for two (2) consecutive weeks in a newspaper of general circulation in the Province of Batangas and the same be posted in the premises of Rural Bank of Balayan ( Batangas), Inc. at the expense of the petitioner.

Furnish copy of this Order, the the the the the the the the the Bangko Sentral ng Pilipinas (BSP), the petitioner-corporation and the Office of the Clerk of Court, Regional Trial Court, Balayan, Batangas.gas.gas.

SO ORDERED.

Balayan, Batangas. November 15, 2005.