A rural bank based in the town of Alimodian, Iloilo was ordered closed by the Bangko Sentral ng Pilipinas (BSP).
The BSP’s Monetary Board issued Resolution No. 539.A on May 6 “prohibiting Rural Bank of Alimodian (Iloilo), Inc. from doing business in the Philippines.”
The resolution also directed the Philippine Deposit Insurance Corporation (PDIC) to take over and liquidate the bank.
The PDIC took over the bank on Wednesday, May 14, as receiver.
“For the safety of the bank clients and local residents, the PDIC field personnel complied with the health, quarantine and travel protocols in accordance with Resolution No. 98-A issued by the Inter-Agency Task Force for the Emerging Infectious Disease (IATF),” the state deposit insurer said in a press release.
“The same Resolution also authorized the PDIC personnel to travel on official business unimpeded to ensure that the PDIC is able to fulfill its mandates under the law,” it added.
Latest available records showed that as of 31 December 2020, the bank has 5,419 deposit accounts with total deposit liabilities of P274.4 million, of which 88% or P241.3 million are insured deposits.
Rural Bank of Alimodian (Iloilo), Inc. is a two-unit rural bank with head office located at Almacen Street in Barangay Poblacion, Alimodian, Iloilo. Its lone branch, Leon Branch, is located at Cabaluna Street in, Barangay Poblacion, Leon, Iloilo.
PDIC assured depositors that all valid deposits and claims will be paid up to the maximum deposit insurance coverage of P500,000.
Individual account holders of valid deposits with balances of P100,000 and below, and who have no outstanding obligations nor have not acted as co-makers of obligations with Rural Bank of Alimodian (Iloilo), Inc., are not required to file deposit insurance claims. They must ensure that they have complete and updated addresses with the bank.
Depositors may update their addresses by submitting Mailing Address Update Forms (MAUF) until 23 June 2021, either through the dropbox available at the bank premises, or by sending a scanned copy of said Form and valid ID to email address, rbalimodian-pad@pdic.gov.ph.
MAUF will be made available at the bank premises or may be downloaded from the PDIC website at www.pdic.gov.ph. Insurance payments for valid deposits with balances of P100 thousand and below will be made through postal money order and targeted to be sent via mail starting on 9 July 2021.
For business entities and all other depositors who are required to file claims for insured deposit, receiving of claims is targeted to start by 22 July 2021. Details will be announced through the PDIC website www.pdic.gov.ph, and PDIC’s official Facebook page, www.facebook.com/OfficialPDIC.
Borrowers are likewise reminded to continue paying their loan obligations with the closed Rural Bank of Alimodian (Iloilo), Inc. and to transact only with designated PDIC representatives. The procedures for settlement of loan obligations are available in the PDIC website.
As provided for by the PDIC Charter, the PDIC shall likewise accept Letters of Intent from interested banks and non-bank institutions for possible purchase of assets and assumption of liabilities (P&A) as a mode of liquidating Rural Bank of Alimodian (Iloilo), Inc.
Letters of intent should be submitted within 60 days from takeover date subject to compliance with the requirements prescribed under the Guidelines in Pre-qualifying Proponents and Evaluating the Proposals for Purchase of Assets and Assumption of Liabilities Mode of Liquidating Closed Banks which can be accessed in the PDIC website.IMT
