FOWRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
SENATE 
/ 
COMMITTEE REPORT NO. 
3 
Prepared and submitted jointly by the Committees on Banks, Financial Institutions and Cunencic\. 
and Government Corporations and Public Enterprises on 
DEC 1 0 2008 
. 
Re 
: 
Senate Bill No. 
2 9 6; 4 
, prepared by the Committees on Banks, Financial 
Institutions and Currencies and Government Corporations and Public Enterprises 
Recommending its approval in substitution of Senate Bills No. 2678; 2687 and 2688 
Sponsor 
Senator Edgardo J. Angara 
MR. PRESIDENT: 
The Committee on Banks, Financial Institutions and Currencies and the Coinmittec oil 
Government Corporations and Public Enterprises, to which were referred 
Senate Bill No. 2678, introduced by Sen. Escudero, entitled: 
“AN ACT AMENDING REPUBLIC ACT NUMBERED THREE THOUSAND FIVE 
OF THE PHILIPPINE DEPOSIT INSURANCE CORPORATION”’ 
HUNDRED NINETY-ONE, AS AMENDED, OTHERWISE KNOWN AS THE ‘CHARTER 
Senate Bill No. 2687 introduced by Senator Angara, entitled: 
i 
“AN ACT AMENDING FURTHER REPUBLIC ACT NUMBERED THREE THOUSANII 
‘CHARTER OF THE PHILIPPINE DEPOSIT INSURANCE CORPORATION’ AND FOR 
OTHER PURPOSES” 
FIVE HUNDRED NINETY-ONE, AS AMENDED, OTHERWISE KNOWN AS THE 
Senate Bill No. 2688, introduced by Sen. Roxas, entitled: 
“AN ACT GRANTING BROADER PROTECTION TO BANK DEPOSITORS AND 
REFORM POWERS TO THE PHILIPPINE DEPOSIT INSURANCE CORPORATION 131 
AMENDING REPUBLIC ACT NO. 3591, AS AMENDED, OTHERWISE KNOWN AS ‘THF 
OTHER PURPOSES’’ 
have considered these bills and have the honor to report them back to the Senate with 1 1 1 ~  
recommendation that the attached bill, Senate Bill No. 
, prepared by the Committee- 
entitled: 
CHARTER OF THE PHILIPPINE: mwosrr INSURANCE CORPORATION’ AND FOR 
:? 96 4 


“AN ACT INCREASING THE MAXIMUM DEPOSIT INSURANCE COVERAGE, AND 
STRENGTHENING THE REGULATORY AND ADMINISTRATIVE AUTHORITY, AND 
FINANCIAL CAPABILITY OF THE PHILIPPINE DEPOSIT INSURANCE 
CORPORATION (PDIC), AMENDING FOR THIS PURPOSE REPUBLIC ACT 
NUMBERED THREE THOUSAND FIVE HUNDRED NINETY-ONE, AS AMENDED, 
OTHERWISE KNOWN AS THE PDIC CHARTER, AND FOR OTHER PURPOSES” 
be approved in substitution of Senate Bill Nos. 2678, 2687 and 2688, with Senators Escudero, 
Angara and Roxas and the members of the Committees on Banks, Financial Institutions and 
Currencies and Government Corporations and Public Enterprises, as authors thereof. 
Respectfully submitted 
Chairman 
Chairman 
Committee on Government Corporations and 
Public Enterprises 
Institutions and Currencies 
Committee on Banks, Financial 
MEMBERS: 
JOKER P. ARROYO 
Committee on Government Corporations and 
Public Enterprises 
Institutions and Currencies 
ALAN PETER S. CAYETANO 
Committee on Banks, Financial 
” REVILLA, JR. 
Public Enterprises 
Institutions and Currencies and 
Government Corporations and 
Public Enterprises 
Committee on Government Corporations and 
Public Enterprises 
Government Corporations and 
Public Enterprises 


RICHARD J. GORDON 
Committee on Banks, Financial 
Public Enterprises 
Institutions and Currencies 
MIRIAM DEFENSOR SANTIAGO 
Committee on Banks, Financial 
Institutions and Currencies 
PAN &&iY 
I 0 
LACSON 
on Banks, Financial 
and Currencies 
LOREN B. LEGARDA 
Committee on Banks, Financial 
Institutions and Currencies 
EX-OFFICIO MEMBERS: 
f 
GOY EJERCITO ESTRADA 
resident Pro Tempore 


141" CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
1 
SENATE BILL NO. 
2964 
Y 
Prepared by the Committees on Banks, Financial Institutions and Currencies and 
Government Corporations and Public Enterprises 
AN ACT 
INCREASING THE MAXIMUM DEPOSIT INSURANCE COVERAGE, AND 
STRENGTHENING THE REGULATORY AND ADMINISTRATIVE 
AUTHORITY, AND FINANCIAL CAPABILITY OF THE PHILIPPINE 
DEPOSIT INSURANCE CORPORATION (PDIC), AMENDING FOR THIS 
PURPOSE REPUBLIC ACT NUMBERED THREE THOUSAND FIVE 
HUNDRED NINETY-ONE, AS AMENDED, OTHERWISE KNOWN AS THE 
PDIC CHARTER, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Statement of State Policy and Objectives. - It is hereby 
declared to be the policy of the State to strengthen the mandatory deposit 
insurance coverage system to generate, preserve and maintain more faith and 
confidence in the country's banking system. 
Towards this end, the government must extend all means and 
mechanisms necessary for the Philippine Deposit Insurance Corporation to 
effectively fulfill its vital task of promoting and safeguarding the interests of the 
depositing public by way of providing permanent and continuing insurance 
coverage on all insured deposits, and in helping develop a sound and stable 
banking system at all times. 
SEC. 2. Section 4 (f) of Republic Act No. 3591, as amended, is hereby 
amended by adding an additional paragraph, to read as follows: 
"(f) The term "deposit" means the unpaid balance of 
money or its equivalent received by a bank in the usual 
course of business and for which it has given or is obliged 
to give credit to a commercial, checking, savings, time or 
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thrift account, or issued in accordance with Bangko Sentral 
rules and regulations and other applicable laws, together 
with such other obligations of a bank, which, consistent 
with banking usage and practices, the Board of Directors 
shall determine and prescribe by regulations to be deposit 
liabilities of the bank. x x x. 
THE CORPORATION SHALL NOT PAY DEPOSIT 
INSURANCE FOR THE FOLLOWING ACCOUNTS OR 
TRANSACTIONS, 
WHETHER 
DENOMINATED, 
DOCUMENTED, 
RECORDED OR 
BOOKED AS 
DEPOSIT BY THE BANK 
1) INVESTMENT PRODUCTS SUCH AS BONDS 
AND SECURITIES, TRUST ACCOUNTS, AND 
OTHER SIMILAR INSTRUMENTS; 
2) 
DEPOSIT ACCOUNTS OR TRANSACTIONS 
WHICH ARE UNFUNDED, OR THAT ARE 
FICTITIOUS OR FRAUDULENT: 
3) 
DEPOSITS THAT ARE MARKETED, SOLICITED, 
ACCEPTED, 
RECEIVED, 
EVIDENCED 
BY, 
AND/OR RECORDED, IN VIOLATION OF LAW, 
OR THE RULES AND REGULATIONS ISSUED 
BY THE BANGKO SENTRAL NG PILIPINAS 
(BSP); 
4) 
DEPOSIT ACCOUNTS OR TRANSACTIONS 
CONSTITUTING, AND/OR EMANATING FROM, 
UNSAFE 
AND 
UNSOUND 
BANKING 
PRACTICE/S, 
AS 
DETERMINED 
BY 
THE 
CORPORATION, IN CONSULTATION WITH 
THE BSP; AND 
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5) 
DEPOSITS THAT ARE DETERMINED TO BE 
THE PROCEEDS OF AN UNLAWFUL ACTIVITY 
AS DEFINED UNDER REPUBLIC ACT 9160, AS 
AMENDED. 
PARAGRAPHS 
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AND 
4 
ABOVE 
SHALL 
IMMEDIATELY AND EXCLUSIVELY APPLY TO 
DEPOSITS MADE AFTER THE PUBLICATION OF A 
CEASE AND DESIST ORDER OR A WARNING 
ISSUED BY THE CORPORATION AGAINST SUCH 
DEPOSIT TRANSACTIONS. 
THE ACTIONS OF THE CORPORATION TAKEN 
UNDER THIS SECTION SHALL BE FINAL AND 
EXECUTORY, AND MAY NOT BE RESTRAINED OR 
SET 
ASIDE 
BY 
THE 
COURT, 
EXCEPT 
ON 
APPROPRIATE PETITION FOR CERTIORARI ON 
THE GROUND THAT THE ACTION WAS TAKEN IN 
EXCESS OF JURISDICTION OR WITH SUCH GRAVE 
ABUSE OF DISCRETION AS TO AMOUNT TO A 
LACK 
OR 
EXCESS 
OF JURISDICTION. 
THE 
PETITION FOR CERTIORARI MAY ONLY BE FILED 
WITHIN THIRTY (30) DAYS FROM NOTICE OF 
DENIAL OF CLAIM FOR DEPOSIT INSURANCE.” 
SEC. 3. Section 4(g) of the same Act is hereby amended to read as follows: 
”(g) The term “insured deposit” means the amount due to 
any depositor for deposits in an insured bank net of any 
obligation of the depositor to the insured bank as of date 
of 
closure, but not to exceed FIVE HUNDRED 
THOUSAND PESOS [Two Hundred Fifty Thousand 
Pesos (P250,000.00)] (P500,OOO.OO). Such net amount shall 
be determined according to such regulations as the Board 
of Directors may prescribe, x x x Provided, fuvthev, That the 
aggregate of the interest of each co-owner over several 
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joint accounts, whether owned by the same or different 
combinations of individuals, juridical persons or entities, 
shall likewise be subject to the maximum insured deposit 
of FIVE HUNDRED THOUSAND PESOS [two hundred 
fifty thousand pesos (P250,000.00)] (P500,OOO.OO). x x x. 
PROVIDED, FINALLY, 
THAT, 
IN CASE OF A 
CONDITION THAT THREATENS MONETARY AND 
FINANCIAL 
STABILITY 
THAT 
MAY 
HAVE 
SYSTEMIC CONSEQUENCES, 
AS 
DEFINED 
IN 
SECTION 18l HEREOF, AS DETERMINED BY THE 
MONETARY BOARD, THE MAXIMUM DEPOSIT 
INSURANCE COVER MAY BE ADJUSTED IN SUCH 
AMOUNT, FOR SUCH A PERIOD, AND/OR FOR 
SUCH 
DEPOSIT 
PRODUCTS, 
AS 
MAY 
BE 
DETERMINED BY A UNANIMOUS VOTE OF THE 
BOARD OF DIRECTORS IN A MEETING CALLED 
FOR THE PURPOSE AND CHAIRED BY THE 
SECRETARY OF FINANCE, 
SUBJECT TO THE 
APPROVAL 
OF 
THE 
PRESIDENT 
OF 
THE 
PHILIPPINES.” 
SEC. 4. In the maximum deposit insurance coverage of Five Hundred 
Thousand Pesos (P500,OOO.OO) provided in Section 4(g) of Republic Act 3591, as 
amended herein, the first Two Hundred Fifty Thousand Pesos (P250,OOO.OO) 
thereof shall be for the account of the Corporation. The remaining Two Hundred 
Fifty Thousand Pesos (P250,000.00) shall be the obligation of, and deemed 
automatically appropriated and paid by the National Government in such 
manner and form as the Secretary of Finance and the Secretary of Budget and 
Management may thereafter determine; Provided, that, after six (6) years from the 
effectivity of this Act, the entire maximum deposit insurance coverage shall be 
for the account of the Corporation. 
SEC. 5. Section 8, paragraph Eighth of the same Act is hereby amended to 
read as follows: 
I Formerly Section 17 of the PDIC Charter 
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”Eighth - To conduct examination of banks with 
prior approval of the Monetary Board: Provided, That no 
examination can be conducted within twelve (12) months 
from the last examination date: Provided, further, That, 
THE 
CORPORATION 
MAY, 
WITH 
PRIOR 
MONETARY 
BOARD 
APPROVAL, 
CONDUCT 
SPECIAL EXAMINATION AT SUCH OTHER TIMES 
AS 
THE 
BOARD 
OF 
DIRECTORS, 
BY 
AN 
AFFIRMATIVE VOTE OF A MAJORITY OF ALL OF 
ITS 
MEMBERS, 
MAY 
DEEM 
EXPEDIENT; 
PROVIDED, THAT, To avoid overlapping of efforts, the 
examination shall maximize the efficient use of the 
relevant reports, information, and findings of the Bangko 
Sentral which it shall make available to the Corporation. 
[Provided, finally, That The Board of Directors shall, in 
close coordination with the Monetary Board, prescribe 
such guidelines as may be necessary to ensure that there 
are no duplications of functions.]” 
SEC. 6. Section 8 of the same Act is amended to include an additional 
paragraph as follows: 
”THIRTEENTH 
- 
TO 
ESTABLISH, 
ORGANIZE, AND OPERATE BRIDGE BANKS AS 
PROVIDED IN THIS ACT. ” 
SEC. 7. A new Section 9 (h) of the same Act is hereby added to read as 
follows: 
“Section 9. 
(h) 
UNLESS 
THE 
ACTIONS 
OF 
THE 
CORPORATION OR ANY OF ITS OFFICERS AND 
EMPLOYEES ARE FOUND TO BE IN WILLFUL 
VIOLATION OF THIS ACT, PERFORMED IN BAD 
FAITH, 
WITH 
MALICE 
AND/OR 
GROSS 
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NEGLIGENCE, 
THE 
CORPORATION, 
ITS 
DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS 
ARE HELD FREE AND HARMLESS TO THE FULLEST 
EXTENT 
PERMITTED 
BY 
LAW 
FROM 
ANY 
LIABILITY, AND THEY SHALL BE INDEMNIFIED 
FOR ANY AND ALL LIABILITIES, LOSSES, CLAIMS, 
DEMANDS, 
DAMAGES, 
DEFICIENCIES, 
COSTS 
AND EXPENSES OF WHATSOEVER KIND AND 
NATURE THAT MAY ARISE IN CONNECTION WITH 
THE 
PERFORMANCE OF THEIR 
FUNCTIONS, 
WITHOUT 
PREJUDICE 
TO 
ANY 
CRIMINAL 
LIABILITY UNDER EXISTING LAWS." 
SEC. 8. Section 9 (h) of the same Act is accordingly renumbered as Section 
9 (i). 
SEC. 9. A new provision numbered Section 13 shall be inserted in the 
same Act to read as follows: 
"Section 13. THE CORPORATION MAY FORM, 
ESTABLISH, ORGANIZE, AND OPERATE AND/OR 
CONTRACT TO OPERATE SUBSIDIARIES 
OR 
CORPORATIONS WHOSE PRIMARY PURPOSE IS 
TO OPERATE AS A BRIDGE BANK AND/OR 
MANAGE 
ACQUIRED 
ASSETS 
OF 
THE 
CORPORATION. 
(1) A 
BRIDGE 
BANK 
REFERS 
TO 
A 
TEMPORARY BANK LICENSED BY THE BANGKO 
SENTRAL NG PILIPINAS (BSP), ESTABLISHED AND 
OPERATED TO ACQUIRE ASSETS AND ASSUME 
LIABILITIES OF A FAILED BANK TO FACILITATE 
ITS RESOLUTION. THE BRIDGE BANK SHALL: 
(A) 
HAVE AUTHORITY TO PURCHASE 
ASSETS, ASSUME DEPOSITS AND 
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OTHER 
LIABILITIES WHICH 
THE 
CORPORATION MAY DETERMINE TO 
BE APPROPRIATE: AND 
(B) 
PERFORM 
SUCH 
BANKING 
FUNCTIONS AS 
THE 
MONETARY 
BOARD 
MAY 
AUTHORIZE, 
CONSISTENT WITH THE OBJECTIVES 
OF THIS SECTION. 
(2) 
A 
BRIDGE 
BANK 
RESOLUTION 
MEASURE MAY BE ADOPTED ONLY IF THE BOARD 
OF DIRECTORS DETERMINES THAT - 
(A) 
IT IS A COST-EFFECTIVE AND VIABLE 
RESOLUTION MEASURE AND THE 
AMOUNT 
NECESSARY 
TO 
IMPLEMENT SUCH MEASURE IS LESS 
THAN THE ESTIMATED INSURED 
DEPOSITS OF THE FAILED BANK; 
AND 
(B) 
THE PRESERVATION OF CRITICAL 
BANKING FUNCTIONS IS IN THE 
BEST INTEREST OF THE DEPOSITORS 
AND THE PUBLIC. 
(3) FOR THE EFFECTIVE IMPLEMENTATION 
OF A BRIDGE BANK RESOLUTION MEASURE, THE 
CORPORATION MAY 
(A) SELL, ASSIGN, TRANSFER, OR CONVEY 
ITS 
SHAREHOLDINGS 
IN 
ITS 
SUBSIDIARY TO THE FAILED BANK; 
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(B) TRANSFER 
SUCH 
ASSETS 
AND 
DEPOSIT LIABILITIES OF A FAILED 
BANK TO THE BRIDGE BANK, AS THE 
CORPORATION 
MAY 
DEEM 
APPROPRIATE. 
ALL 
TRANSFERS 
UNDER THIS SUBSECTION SHALL 
(1) NOT BE SUBJECT TO ANY TAXES, 
SUCH AS CAPITAL GAINS TAX, AS 
WELL AS INCOME TAX, VALUE 
ADDED TAX AND DOCUMENTARY 
STAMP TAX, AND OTHER TAXES, 
AS MAY BE APPLICABLE; 
(2) BE CONSIDERED IN CUSTODIA 
LEGIS IN THE HANDS OF THE 
BRIDGE BANK. FROM THE TIME 
THE ASSETS ARE TRANSFERRED 
TO A BRIDGE BANK, ITS ASSETS 
SHALL 
NOT 
BE 
SUBJECT TO 
ATTACHMENT, 
EXECUTION, 
GARNISHMENT, 
LEVY, 
FORECLOSURE OR ANY OTHER 
COURT PROCESSES. THEREFORE, 
A JUDGE, OFFICER OF THE COURT 
OR ANY PERSON WHO SHALL 
ISSUE, 
ORDER, 
PROCESS 
OR 
CAUSE 
THE 
ISSUANCE 
OR 
IMPLEMENTATION OF THE WRIT 
OF 
GARNISHMENT, 
LEVY, 
ATTACHMENT 
OR 
EXECUTION 
SHALL 
BE 
LIABLE 
UNDER 
SECTION 222 HEREOF. 
Formerly Section 21 of the PDIC Charter. 
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(3) BE 
EFFECTIVE WITHOUT 
ANY 
CONSENT 
FROM 
THE 
STOCKHOLDERS, 
CREDITORS, 
DEPOSITORS AND ALL OTHER 
STAKEHOLDERS OF THE FAILED 
BANK, NOTWITHSTANDING ANY 
PROVISION OF LAW TO THE 
CONTRARY. 
(C) MAKE ADVANCES TO THE BRIDGE 
BANK OR CLOSED BANK, UPON SUCH 
TERMS AND CONDITIONS AND IN 
SUCH FORM AND AMOUNTS AS THE 
BOARD OF DIRECTORS 
MAY 
PRESCRIBE, SUFFICIENT FUNDS FOR 
THE BRIDGE BANK TO OPERATE. 
THESE ADVANCES SHALL PARTAKE 
OF THE NATURE OF PUBLIC FUNDS, 
AND AS SUCH, MUST BE CONSIDERED 
A PREFERRED CREDIT SIMILAR TO 
TAXES 
DUE 
TO THE 
NATIONAL 
GOVERNMENT IN THE ORDER OF 
PREFERENCE UNDER ARTICLE 2224 OF 
THE NEW CIVIL CODE; 
(D) CONDUCT DUE DILIGENCE ON AN 
INSURED BANK, AND EXAMINE AND 
AUDIT 
THE 
DEPOSIT 
ACCOUNTS 
AND/OR RECORDS, OF AN INSURED 
BANK, SO AS TO ESTABLISH A 
DEPOSIT PROFILE OF THE BANK AS 
TO 
THE 
NUMBER 
OF 
DEPOSIT 
ACCOUNTS AND TOTAL INSURED 
DEPOSITS; PROVIDED, 
THAT THE 
INFORMATION 
ON 
INDIVIDUAL 
ACCOUNTS 
OBTAINED 
THROUGH 
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SUCH 
EXAMINATION 
OR 
AUDIT 
SHALL 
NOT 
BE 
DISCLOSED 
OR 
RELEASED TO ANY OTHER PARTY 
EXCEPT TO THE CORPORATIONS 
BOARD OF DIRECTORS OR UPON 
ORDER OF THE COURT: AND 
(E) 
APPOINT, 
INSTALL, 
DESIGNATE, 
AND/OR REMOVE THE DIRECTORS 
AND OFFICERS OF A BRIDGE BANK 
AND FIX THEIR COMPENSATION. 
(4) THE 90-DAY PERIOD PROVIDED UNDER 
SECTION 30 OF REPUBLIC ACT 7653, AS AMENDED, 
WITHIN 
WHICH 
THE 
RECEIVER 
SHALL 
DETERMINE WHETHER THE INSTITUTION MAY BE 
REHABILITATED SHALL NOT BE APPLICABLE. 
(5) THE BRIDGE BANK SHALL TERMINATE 
AT THE END OF TWO (2) YEARS FOLLOWING THE 
DATE IT WAS GRANTED A BANKING LICENSE, 
SUBJECT TO THE PROVISIONS IN PARAGRAPHS 
(6) AND (7); PROVIDED, FURTHER, THAT THE 
BOARD OF DIRECTORS MAY EXTEND THE STATUS 
OF THE BRIDGE BANK IF DEEMED NECESSARY TO 
CONCLUDE PENDING NEGOTIATIONS FOR THE 
SALE, MERGER OR ACQUISITION OF THE BRIDGE 
BANK BY A BUYER OR ACQUIRER. PROVIDED, 
FINALLY, 
THAT THE MAXIMUM EXTENSION 
SHALL BE ONE (1) YEAR. 
(6) TERMINATION OF BRIDGE BANK.-THE 
STATUS OF ANY BRIDGE BANK AS SUCH SHALL 
TERMINATE UPON THE EARLIEST OF- 
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(A) THE MERGER OR CONSOLIDATION 
OF 
THE 
BRIDGE 
BANK 
WITH 
ANOTHER BANK THAT IS NOT A 
BRIDGE BANK; OR 
(B) 
THE SALE OF THE BRIDGE BANK TO A 
QUALIFIED BUYER, 
AS MAY 
BE 
DETERMINED BY THE BOARD OF 
DIRECTORS; OR 
(C) THE 
ASSUMPTION 
OF 
ALL 
OR 
SUBSTANTIALLY ALL OF THE (1) 
DEPOSITS AND OTHER LIABILITIES 
AND/OR (2) ASSETS OF THE BRIDGE 
BANK BY AN INSURED BANK THAT 
IS NOT A BRIDGE BANK, OR OTHER 
ENTITY 
AS 
PERMITTED 
UNDER 
APPLICABLE LAW. FOLLOWING THE 
ASSUMPTION 
OF 
ALL 
OR 
SUBSTANTIALLY 
ALL 
OF 
THE 
LIABILITIES OF THE BRIDGE BANK 
AND 
THE 
SALE 
OF 
ALL 
OR 
SUBSTANTIALLY ALL OF THE ASSETS 
OF THE BRIDGE BANK, THE BRIDGE 
BANK SHALL BE LIQUIDATED IN 
ACCORDANCE 
WITH 
THE 
PROVISIONS OF LAW RELATING TO 
THE 
LIQUIDATION 
OF 
CLOSED 
BANKS; AND 
(D) 
THE EXPIRATION OF THE PERIOD 
PROVIDED IN PARAGRAPH (5), OR 
THE EARLIER DISSOLUTION OF THE 
BRIDGE BANK AS PROVIDED IN 
PARAGRAPH (7). 
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(7) DISSOLUTION OF BRIDGE BANK.- 
(A) 
NOTWITHSTANDING 
ANY 
OTHER 
PROVISION 
OF 
LAW 
TO 
THE 
CONTRARY, IF THE BRIDGE BANK’S 
STATUS 
AS 
SUCH 
HAS 
NOT 
PREVIOUSLY BEEN TERMINATED BY 
THE OCCURRENCE OF AN EVENT 
SPECIFIED IN SUBPARAGRAPH (A), 
(B) OR (C), OF PARAGRAPH (6), THE 
CORPORATION’S 
BOARD 
OF 
DIRECTORS, 
MAY 
DISSOLVE 
A 
BRIDGE BANK AT ANY TIME IT 
DEEMS NECESSARY. 
(B) 
THE 
CORPORATION, 
AS 
SUCH 
RECEIVER, SHALL WIND UP THE 
AFFAIRS OF THE BRIDGE BANK IN 
CONFORMITY 
WITH 
THE 
PROVISIONS OF LAW RELATING TO 
THE 
LIQUIDATION 
OF 
CLOSED 
BANKS. WITH RESPECT TO ANY 
SUCH 
BRIDGE 
BANK, 
THE 
CORPORATION, AS SUCH RECEIVER, 
SHALL HAVE ALL 
THE RIGHTS, 
POWERS, 
AND PRIVILEGES, 
AND 
SHALL 
PERFORM 
THE 
DUTIES 
RELATED TO THE EXERCISE OF SUCH 
RIGHTS, POWERS, OR PRIVILEGES 
GRANTED BY LAW TO A RECEIVER 
OF ANY INSURED BANK. 
(8) 
MATTERS 
RELATING 
TO 
THE 
EXERCISE 
BY 
THE 
CORPORATION 
OF 
THE 
FUNCTIONS UNDER THIS SECTION SHALL BE 
SUBJECT TO VISITORIAL AUDIT ONLY. 
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(9) THE ACTIONS OF THE CORPORATION 
UNDER THIS SECTION SHALL BE FINAL AND 
EXECUTORY, AND MAY NOT BE RESTRAINED OR 
SET ASIDE BY THE COURT, EXCEPT ON PETITION 
FOR CERTIORARI WITH THE COURT OF APPEALS 
ON THE GROUND THAT THE ACTION WAS TAKEN 
IN EXCESS OF JURISDICTION OR WITH SUCH 
GRAVE ABUSE OF DISCRETION AS TO AMOUNT 
TO A LACK OR EXCESS OF JURISDICTION. THE 
PETITION FOR CERTIORARI MAY ONLY BE FILED 
WITHIN TEN (10) DAYS FROM PUBLICATION OF 
THE NOTICE ON THE ESTABLISHMENT OF A 
BRIDGE BANK. 
(10) 
THE BOARD OF DIRECTORS SHALL 
PROMULGATE THE IMPLEMENTING RULES AND 
REGULATIONS TO IMPLEMENT THE PROVISIONS 
OF THIS SECTION." 
SEC. 10. 
Sections 13 to 28 of the same Act shall be accordingly 
renumbered as Sections 14 to 29. 
SEC. 11. An additional paragraph in Section 18 of the same Act (as 
renumbered herein) is hereby added to read as follows: 
"CORPORATE FUNDS 
SECTION 18. X X X. 
C) IT IS HEREBY 
DECLARED TO BE THE POLICY OF THE STATE 
THAT THE DEPOSIT INSURANCE FUND OF THE 
CORPORATION 
SHALL 
BE 
PRESERVED 
AND 
MAINTAINED AT ALL TIMES. ACCORDINGLY, ALL 
TAX OBLIGATIONS OF THE CORPORATION FOR A 
PERIOD OF FIVE (5) YEARS RECKONED FROM THE 
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DATE OF EFFECTIVITY OF THIS ACT SHALL BE 
CHARGEABLE TO THE TAX EXPENDITURE FUND 
(TEF) 
IN 
THE 
ANNUAL 
GENERAL 
APPROPRIATIONS 
ACT 
PURSUANT 
TO THE 
PROVISIONS OF EXECUTIVE ORDER NO. 93; 
PROVIDED, 
THAT, ON THE 
6TH YEAR AND 
THEREAFTER, THE CORPORATION SHALL BE 
EXEMPT FROM INCOME TAX AND VALUE-ADDED 
TAX 
ON 
ASSESSMENTS 
COLLECTED 
FROM 
MEMBER BANKS. IN THE CASE OF ITS OTHER TAX 
LIABILITIES, 
THE 
CORPORATION 
SHALL BE 
EXEMPT IF THE NATIONAL GOVERNMENT HAS 
ATTAINED A BALANCED BUDGET. OTHERWISE, 
THESE TAX OBLIGATIONS SHALL CONTINUE TO 
BE CHARGEABLE TO THE TEF. 
MOREOVER, THE EXEMPTION GRANTED 
HEREIN 
SHALL 
NOT 
BE 
AFFECTED 
BY 
SUBSEQUENT LAWS TO THE CONTRARY UNLESS 
THIS SECTION IS EXPRESSLY, SPECIFICALLY AND 
CATEGORICALLY REVOKED OR REPEALED BY 
LAW AND A PROVISION 
IS ENACTED TO 
SUBSTITUTE OR 
REPLACE 
THE 
EXEMPTION 
REFERRED TO HEREIN AS AN ESSENTIAL FACTOR 
TO MAINTAIN OR PROTECT THE SUFFICIENCY 
AND 
SUSTAINABILITY 
OF 
THE 
DEPOSIT 
INSURANCE FUND.” 
SEC. 12. Section 17 (c) of the same Act shall be accordingly renumbered as 
Section 18 (d). 
SEC. 13. Section 20 (as renumbered herein) is hereby amended to read as 
follows: 
”Section 20. With the approval of the President of 
the Philippines, the Corporation is authorized to issue 
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bonds, debentures, and other obligations, BOTH LOCAL 
OR FOREIGN, as may be necessary for purposes of 
PROVIDING LIQUIDITY FOR settlement of insured 
deposits in closed banks as well as for financial assistance 
as provided herein: Provided, That the Board of Directors 
shall determine the interest rates, maturity and other 
requirements of said obligations: Provided, further, That 
the Corporation shall provide for appropriate reserves for 
the redemption or retirement of said obligation. 
All notes, debentures, bonds, or such obligations 
issued by the Corporation shall be exempt from taxation 
BOTH AS TO PRINCIPAL AND INTEREST, AND 
SHALL 
BE 
FULLY 
GUARANTEED 
BY 
THE 
GOVERNMENT OF THE REPUBLIC 
OF THE 
PHILIPPINES. SUCH GUARANTEE, WHICH IN NO 
CASE SHALL EXCEED TWO TIMES THE DEPOSIT 
INSURANCE FUND AS OF DATE OF THE DEBT 
ISSUANCE, SHALL BE EXPRESSED ON THE FACE 
THEREOF. 
THE BOARD OF DIRECTORS SHALL HAVE 
THE 
POWER 
TO 
PRESCRIBE 
RULES 
AND 
REGULATIONS FOR THE ISSUANCE, REISSUANCE, 
SERVICING, PLACEMENT AND REDEMPTION OF 
THE BONDS HEREIN AUTHORIZED TO BE ISSUED 
AS WELL AS THE REGISTRATION OF SUCH BONDS 
AT THE REQUEST OF THE HOLDERS THEREOF." 
SEC. 14. An additional paragraph shall be inserted under Section 2, to 
3 1 
read as follows: 
32 
33 
"SECTION 
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have the authority: 
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2. xxx The Board of Directors shall 
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7. TO REVIEW THE ORGANIZATIONAL SET- 
UP OF THE CORPORATION AND ADOPT A NEW OR 
REVISED ORGANIZATIONAL STRUCTURE AS IT 
MAY DEEM NECESSARY FOR THE CORPORATION 
TO 
UNDERTAKE 
ITS 
MANDATE 
AND 
FUNCTIONS.” 
SEC. 15. Separability Clause. If any provision or section of this Act or the 
application thereof to any person or circumstances is held invalid, the other 
provisions or sections of this Act, in the application of such provision or section 
to other persons or circumstances, shall not be affected thereby. 
SEC. 16. Repealing Clause. All acts or parts of acts and executive orders, 
administrative orders, or parts thereof, which are inconsistent with the 
provisions of this Act, are hereby repealed. 
SEC. 17. Effectivity Clause. This Act shall take effect fifteen (15) days 
following the completion of its publication in the Official Gazette or in two (2) 
newspapers of general circulation. 
Approved. 
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