RFBT - UNCLAIMED BALANCES LAW Flashcards Preview

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Flashcards in RFBT - UNCLAIMED BALANCES LAW Deck (13)
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1
Q

What are unclaimed balances?

A

RA 3936 as amended by PD 679
Unclaimed balances include deposits of money, bullion, security, or other evidence of indebtedness of any kind, and interest thereon with banks, buildings and loan associations, trust corporations, in favor of:

a. ) Any person KNOWN TO BE DEAD, or
b. ) Who has not made further deposits/withdrawals during the PRECEDING TEN YEARS OR MORE.

2
Q

What needs to be submitted with respect to unclaimed balances? Who are required to submit these and where should it be submitted?

A

With respect to unclaimed balances, a SWORN STATEMENT to the TREASURER OF THE PHILIPPINES is to be submitted by the following:
BTSM
1.) Banks
2.) Mutual Building and Loan Associations
3.) Trust corporations
4.) Savings and Mortgage banks

3
Q

RA 3936 was amended by what PD? What was the purpose of the amendment?

A

It was amended by PD 679. Its purpose was to SIMPLIFY THE PROCEDURE FOR THE ESCHEAT OF UNCLAIMED BALANCES FOR THE PURPOSE OF REDUCING THE EXPENSES THEREOF.

4
Q

RA 3936 as amended by PD 679 is known as?

A

“Revised Unclaimed Balances Act of 2013”

5
Q

What is the required publication under RA 3936?

A
  1. ) Publication of a sworn statement of unclaimed balances in banks once a week of three consecutive weeks in at least TWO NEWSPAPERS IN GENERAL CIRCULATION in the locality where the banks are situated, if there be any, and if there is none, in the City of Manila, one in English and one in Spanish.
  2. ) Publication of summons and a notice upon the commencement of the prescribed judicial proceedings for the escheat of unclaimed balances
6
Q

What are the requirements under PD 679 with respect to the unclaimed balances?

A
  1. ) The entities covered must COMMUNICATE WITH THE PERSON in whose favor the unclaimed balances stands AT HIS LAST KNOWN PLACE OF RESIDENCE OR POST OFFICE ADDRESS.
  2. ) The ENTITIES COVERED SHALL FORWARD TO THE TREASURER OF THE PHILIPPINES A STATEMENT under oath of their respective managing officers of all credits and deposits held by them in favor of PERSONS KNOWN TO BE DEAD, or WHO HAVE NOT MADE FURTHER DEPOSITS OR WITHDRAWALS during the PRECEDING TEN YEARS OR MORE, arranged in alphabetical order according to the names of creditors and depositors.
  3. ) A copy of the above sworn statement shall BE POSTED IN A CONSPICUOUS PLACE IN THE PREMISES OF THE BANK/BUILDING; LOAN ASSOCIATION/TRUST CORPORATION concerned FOR AT LEAST 60 DAYS FROM THE FILING THEREOF.
  4. ) The SOLICITOR GENERAL SHALL BE INFORMED OF SUCH UNCLAIMED BALANCES, and he shall commence an action in the name of the People of the Republic of the Philippines in the Court of First Instance of the province or city where the bank/building & loan association/trust corporation is located.
  5. ) Service of process in such action or actions shall be made by delivery of a copy of the complaint and summons to the president, cashier, or managing officer of each defendant bank/building & loan association/trust corporation and by publication of a copy of each summons in a newspaper of general circulation, either in English or Filipino, or in a local dialect, published in the locality where the bank/building & loan association/trust corporation is situated, if there be an, and in the case there is none, in the City of Manila, at such time the court may order.
7
Q

How does one reactivate unclaimed balances?

A
  1. ) LETTER REQUEST OF DEPOSITOR/CREDITOR - The depositor/creditor shall write his depository bank REQUESTING FOR THE REACTIVATION OF HIS ACCOUNT which was included in the report of unclaimed balances to the Bureau of Treasury.
  2. ) AUTHENTICATION - The covered institution shall AUTHENTICATE and VERIFY THE REQUEST FOR REACTIVATION and the SIGNATURE OF THE DEPOSITOR/CREDITOR.
  3. ) LETTER REQUEST OF THE COVERED INSTITUTION -The depository bank shall write the Bureau of Treasury through the authorized approving official, requesting authority to reactivate the deposit account concerned attaching to its letter the stamped verified letter of the depositor/creditor.
  4. ) DEED OF UNDERTAKING - The covered institution through its responsible authorized officer shall EXECUTE A DEED OF UNDERTAKING ensuring that the Bureau of Treasury and its officials and employees shall be free and harmless from any liability once the account is reactivated.
  5. ) LETTER OF AUTHORITY TO REACTIVATE - Finding complete documentation supporting the request, the Bureau of Treasury through its authorized officer, shall ISSUE THE AUTHORITY TO THE COVERED INSTITUTION TO REACTIVATE THE ACCOUNT.
  6. ) ENTITY REQUIREMENTS - In case the requesting party/creditor/depositor is a JURIDICAL ENTITY/PERSON, the request must be accompanied with CORRESPONDING BOARD RESOLUTIONS AND/OR SECRETARY’S CERTIFICATE showing that the signatory to the REQUEST FOR REACTIVATION IS FULLY AUTHORIZED TO TRANSACT with the Bureau of Treasury relative to the reactivation of its account.
8
Q

What is referred to as covered institutions in RA 3936 as amended by PD 679?

A

Covered institutions refer to all banks, trust companies, savings and mortgage banks, mutual building and loan associations, and all banking institutions of every kind.

9
Q

What is an Affidavit of Undertaking?

A

It is a sworn statement executed by the authorized officer of the covered institution ABSOLVING THE BUREAU OF TREASURY from any liability that may arise due to the granting of the applicants’s request for reactivation.

10
Q

Up to what aggregate amount can an authorized officer of the Bureau of Treasury reactivate unclaimed balance accounts?

A
  1. ) Up to 100,000 - Division Chief/ Head Law & Litigation Division Legal Service.
  2. ) 100,001 to 500,000 - Director/ Legal Service
  3. ) 500,001 to 1,000,000 - Deputy Treasurer of the Philippines
  4. ) Exceeding 1,000,000 - Treasurer of the Philippines
11
Q

Explain the escheat proceedings.

A

When a person dies intestate, seized of real property in the PH, leaving no heir or person by law entitled to the same, the Solicitor General or his representative in behalf of the Republic of the Philippines may file a petition in the Court of First Instance of the province where the deceased last resided or in which he had estate, if he resided out of the Philippines, setting forth the facts and praying that the estate of the deceased be DECLARED ESCHEATED IN FAVOR OF THE STATE OR REPUBLIC OF THE PHILIPPINES.

12
Q

May demand drafts be escheated in favor of the government?

A

No.

13
Q

May telegraphic notes be escheated in favor of the government?

A

Yes.