Bank Secrecy

Anti- Money Laundering Act

 If you failed to disclose or if you facilitated, you are also liable to Anti Money Laundering Act.
 Even if below Php 500,000 daily is deposited in your bank account and it became suspicious, you
are still liable.
 Even without court order
 In old cases, court order is necessary if you are subjected to questioning of your accounts or
subject to litigation, certain deposits under anti money laundering except subject kidnapping
arson, murder,

PDIC

 Place the bank under receivership immediately no prior notice and hearing = this is an exercise
of police power.
 Bank will still operate but the PDIC takes over the administration of bank.
 Some properties of bank are for attachment or garnishment, is it violation of bank dep secrecy =
no, attachment or garnishment cases are not prohibited
 Involuntary dissolution is made; can summary close bank. Qualify if ordinary corporation or bank

Foreign Currencies

 Provides for confidentiality or bank secrecy

 Only one exception: Written exception

Bank - shall exercise highest degree of diligence to protect its depositor.

-it is required to go deeper. TCT is not enough. Required to examine eve beyond the tct.

If you’re not able to pay your loam

Bank has right to redeem within 1yr. /Corporation: 3 months

In rural banks, they allow loans with collateral without title only tax declaration

- 2yrs to redeem from foreclosure

If namatay, the heirs have right to repurchase within 5yrs

Commercial banks -1yr and 3 months

- Can repurchase 5yrs from the time it was redeem

If you use your own deposits, limited on what you have.

Dragnet Clause – separate clause that will subsume all your utang to provide continuous security for
future or present loan without need of additional expenses or contract(Blanket Mortgage)(applicable
lifetime)

Interest of loan or any forbearance or money 6% in the absence of any stipulation on interest
12% per annum.

Insurance law prevails.

BSP is only a circular. BSP Circular-799 2013 so no conflict

Truth and lending Act - to protect those who are not aware of the interest the true cost

Prevailing rate is at the time of payment.

Sec. 54, 58,

Emphasize Preferred Filipino shares

Voting rights

In so far as electing members of the board-stockholders will vote common and preferred share shall
participate in voting

For other election like amendment of articles, blaws, merger, liquidation, changes in authorized capital
stock-with participation of stockholder –they are not deprived of voting rights

SEC 54

Full beneficial ownership

Full beneficial use

By transferring to another person your right to vote as preferred but you are not allowed to vote for
election of board but to others pwede.

Philippine national- nationality of corporation composed of Fil 60% of capital stock-40

Declaration of dividends is prerogative of the corporation.

-mandatory to declare dividends if the net exceeds 100 of their; ex to ex: corporate expansion, if you
have loan agreements with bank and expressed that no dividends to be declared, if surplus are
pretention is very necessary for business purposes (p247)

Teleconferencing – you can participate remotely

Subscription-you are stockholder. You are already a subscriberbut not being elected in the board, must
own atleast 1 share of stock

Delinquent stockholder – you should have a declaration by the board that you are a delinquent
stockholder

Appraisal right – right to dissent