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FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
S. No. __ :j186 
Introduced by Senator Franklin M. Drilon 
EXPLANATORY NOTE 
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MAY -8 P 2 :24 
Fiduciary funds deposited with the courts by private parties that remain 
unclaimed for long periods of time after the termination of their respective court cases 
or the release date provided in the final order of the court constitute a significant source 
of funding for the Republic of the Philippines. From 2008 to 2010, around 50 Million 
Pesos of such fiduciary funds were forfeited by the courts 1, but could not be deposited 
with the Bureau of Treasury because there is no law authorizing such transfer. Instead 
of being used to fund government projects that stimulate economic development and 
help the poor, these funds are currently abandoned, idle, and wasted. 
Moreover, the Supreme Court has, in fact, already acknowledged that such 
unclaimed fiduciary funds may be escheated or forfeited in favor of the government, 
through the Bureau of Treasury, provided that a law is passed for such purpose. 2 
Hence, there is an urgent need for the a law -- in the words of the Supreme Court 
-- that would provide for, the escheating or forfeiting of unclaimed fiduciary funds, fixing 
the period for declaring such funds abandoned and ownerless, and prescribing the due 
process requirements. 
In view of the foregoing, approval of this bill is strongly recommended. 
FR 
1 Letter of Court Administrator Midas P. Marquez, dated 30 September 2011 with Schedule of Collections of Confiscated/Forfeited 
Bonds for the years 2008, 2009 and 2010. 
2 Supreme Court Resolution, A.M. No. OS-3-35-SC eRe: Audit Observation Memorandum) & A.M. No. 10-8-3-SC (Re: Fiduciary fund 
Deposits Not Remitted to the Bureau of Treasury), page 10, 
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FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
) 
) 
) 
SENATE 
S. No. 
3186 
Introduced by Senator Franklin M. Drilon 
AN ACT 
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PROVIDING FOR RULES ON THE ESCHEAT OF UNCLAIMED FIDUCIARY FUNDS, AND 
FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled. 
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SECTION 1. Short Title. - This Act shall be known as the "Escheat of Unclaimed 
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Fiduciary Funds of 2012". 
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SECTION 2. Scope. - "Unclaimed Fiduciary Funds", within the meaning of this Act, 
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shall refer to funds deposited by private parties to any court of law in custodia legis 
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to guarantee an obligation in favor of another private party, including cancelled 
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deposits by private parties intended to guarantee undertakings to the government 
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such as but not limited to cancelled cash bail bonds, and interest thereon, the 
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rightful private owners of these funds have failed to claim the same during the 
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preceding ten years or more from the termination of the case or from such release 
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date provided in the final order by the courts. 
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Such unclaimed fiduciary funds, together with the increase and proceeds thereof, 
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but after deducting a service fee of 10% per annum of the interests earned in favor 
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of the Judiciary Fund in accordance with PD 1949, as amended, shall be deposited 
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with the Treasurer of the Philippines to the credit of the Government of the Republic 
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of the Philippines to be used as the Congress may direct. 
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SECTION 3. Reporting of Unclaimed Fiduciary Fund; Notice to Parties. - Immediately 
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after effectivity of this Act and within the month of January of every odd year, the 
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Chief of the Supreme Court's Fiscal and Management Budget Office shall forward to 
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the Treasurer of the Philippines a statement, under oath, of all deposits being held 
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