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Investment and Banking Law Course Outline Atty. Roderick P. Vera A. General Banking Act (R.A. 8791) 1.

Definition and classification of banks Secs. 1 to 3, 8 to 22 2. Distinction of banks from quasi-banks and trust entities Secs. 4 to 7 3. Bank powers and liabilities Sec. 34 to 53 4. Diligence required of banks - relevant jurisprudence a) Consolidated Bank v. CA & Diaz, G.R. No. 138569. Sept. 11, 2003 b) PNB v. CA, G.R. No. 127469, Jan. 15, 2004 c) PNB v. Pike, G.R. No. 157845, Sept. 20, 2005 d) BPI v. Lifetime Marketing, G.R. No. 176434, June 25, 2008 e) BPI v. Casa Montessori, G.R. No. 149454, May 28, 2004 f) Central Bank vs. Citytrust Bank, G.R. No. 141835, Feb. 4, 2009 5. Nature of bank funds and bank deposits Sec. 33 a) Allied Bank vs. Lim Sio Wan, G.R. No. 133179, March 27, 2008 b) Associated Bank vs. Tan, G.R. No. 156940, Dec. 14, 2004 6. Stipulation on interests 7. Grant of loans and security requirements Sec. 37 to 47 a) Benguet Management vs. Keppel Bank, G.R. No. 153571, Sept. 18, 2003 b) San Fernando Rural Bank vs. Pampanga, G.R. No. 168088, April 3, 2007 8. Penalties for violations Secs. 54 to 57 B. The New Central Bank Act (R.A. 7653) 1. State policies Sec. 1 2. Creation of the Bangko Sentral ng Pilipinas (BSP) Sec. 2 3. Responsibility and primary objective Sec. 3 4. Monetary board - powers and functions Secs. 5 to 16 5. How the BSP handles banks in distress Secs. 19, 25, 29 to 31 6. How the BSP handles exchange crisis Sec. 61 to 80 Cases: a) Rural Bank of San Miguel vs. Monetary Board, G.R. No. 150886, Feb. 16, 2007 b) Central Bank Employees Association vs. BSP, G.R. No. 148208. Dec. 15, 2004 c) Miranda vs. PDIC, G.R. No. 169334, September 8, 2006 d) Soriano vs. BSP, G.R. No. 162336, Feb. 1, 2010

C. Law on Secrecy of Bank Deposits (R.A. 1405, as amended) 1. Purpose 2. Prohibited acts 3. Deposits covered 4. Exceptions 5. Garnishment of deposits, including foreign deposits 6. Penalties for violation Cases: a) PSBank vs. Senate, G.R. 200238, Feb. 9, 2012 (Resolution, Brion concurring and Serreno's Dissenting) b) BSB Group vs. Sally Go, G.R. No. 168644, Feb. 16, 2010 c) GSIS vs. Industrial Bank of Korea, G.R. No. 189206, June 8, 2011 d) JV Ejercito vs. Sandiganbayan, G.R. Nos. 157294-95, November 30, 2006 D. Philippine Deposit Insurance Corporation Act (R.A. 3591, as amended) 1. Basic policy Sec. 1 2. Concept of insured deposits Sec. 4 3. Liability to depositors a) Deposit liabilities required to be insured with PDIC Sec. 5 b) Commencement of liability (Sec. 4 [g]) c) Deposit accounts not entitled to payment (Sec. 4 [f]) d) Extent of liability (Sec. 4 [g]) e) Determination of insured deposits (Sec. 14) f) Calculation of liability Cases: a) PDIC vs. Citibank, G.R. No. 170290, April 11, 2012 b) PDIC vs. Abad, G.R. No. 126911, April 30, 2003 c) PDIC vs. Aquero, G.R. No. 118917, December 22, 1997 d) PDIC vs. Philippines Countryside Rural Bank, G.R. No. 176438, Jan. 24, 2011 E. Anti Money Laundering Act (R.A. 9160) 1. Basic Policy (Sec. 2) 2. Definitions (Sec. 3) 3. Offenses (Sec. 3 & 4) 4. Anti-Money Laundering Council (Sec. 7) 5. Prevention (Sec. 9) 6. Powers of AMLC (Sec. 10 to 12) 7. Foreign State Assistance (Sec. 13) 8. Penal Provisions (Sec. 14) Cases: a) Republic vs. Glasgow Credit, G.R. No. 170281, Jan. 18, 2008 b) Republic vs. Hon. EugenioG.R. No. 174629, February 14, 2008 c) People vs. Estrada, G.R. No. 164368-69, April 2, 2009