GENERAL BANKING LAW of 2000 RA8791 An Act Providing for the Regulation of the Organization and Operations of Banks,

, Quasi-Banks, Trust Entities and For Other Purposes 1. State Policy/Purpose Section 2, RA8791 2. Scope of Application Section 3.2, 25-28, 29-32 and 71, RA8791 3. General concepts a. Definition of a bank Section 3.1 and 8, RA8791 b. Nature of Banking i. Debtor-Creditor Relationship Gullas v. PNB, G.R. No. L-43191, November 13, 1935 Consolidated Bank & Trust Co. v. CA, G.R. No. 138569, September 11, 2003 ii. Fiduciary Relationship requiring Utmost Diligence Simex International (Manila) Inc. v. CA, G.R. No. 88013, March 19, 1990 Philippine Banking Corporation v. CA, G.R. No. 127469, January 15, 2004 iii. Not a Trust Agreement Serrano v. Central Bank, G. R. No. L-30511, iv. Impressed with Public Interest Simex International (Manila) Inc. v. CA v. Duty to Keep Records Philippine Banking Corporation v. CA vi. Special Rules on Strikes & Lockouts Section 22, RA 8791 c. Classification of banks i. Universal Banks Section 23, RA8791 ii. Commercial Banks Section 29, RA8791 iii. Thrift Banks as defined in RA7906 iv. Rural Banks as defined in RA7353 v. Cooperative Banks as defined in RA6938 vi. Islamic Banks as defined in RA6848 vii. Other Classifications of Banks Government-Owned Banks Philippine Veterans Bank

Land Bank of the Philippines Development Bank of the Philippines

d. Distinction of banks from quasi-banks Section 4, RA8791 4. Organization and Operation of Banks i. Authority from the Bangko Sentral ii. Organization of a Bank or Quasi-bank iii. Authority to engage in banking or quasi-banking functions iv. Stockholding v. Fit and proper rule vi. Operations of commercial banks vii. Operations of universal banks 5. Bank Powers and Liabilities a. General powers incident to corporations - Sec 30, Corporation Code of the Philippines b. Banking and Incidental Powers Sec 29, General Banking Law of 2000 6. Functions of banks a. Loan function b. Deposit function i. Deposit, defined ii. Parties to a contract of deposit 1. Depositor a. Requirements b. Capacity i. Minor ii. Married women iii. Corporation c. Account names i. Individual and joint accounts ii. Anonymous accounts 2. Bank as debtor a. Tan Tiong Tick vs. American Apothecaries, 65 Phil 414 (1938) b. Simex International (Manila), Incorporated vs. Court of Appeals, Gr No. 88013. March 19, 1990 c. Fulton Iron Works Co. vs. China Banking Corp., GR No. 32576, Nov. 6, 1930 d. Guingona vs. City Fiscal Of Manila, 128 SCRA 577 (1984) e. Gullas vs. Philippine National Bank, 62 Phil 519 (1935) iii. Kinds of Deposits 1. Demand deposits 2. Savings deposits 3. Negotiable Order of Withdrawal Accounts (NOW Accounts) 4. Time Deposits

iv. Deposits and Withdrawal of Funds 1. Process of Depositing Philippine Bank Of Commerce vs. Court Of Appeals, GR No. 97626, March 14, 1997 a. Proof of Deposit and its validation b. Withdrawal Citibank, N.A. vs. Sps. Cabamongan, et.al., GR No. 146918, (488 SCRA 517) c. Booking of Deposits d. Statements of Accounts and Passbooks Bank Of Philippine Islands vs. Casa Montesorri Internationale and Leonardo Yabut, GR No. 14954. May 28, 2004 v. Deceased depositor vi. Closure of Account Far East Bank and Trust Company vs. Pacilan, Jr., GR No. 157314, July 29, 2005. 465 SCRA 372 c. Other functions Art. 53, General Banking Law of 2000 CA Agro-Industrial Development Corporation vs. Court of Appeals, GR No. 90027, March 3, 1993. (219 SCRA 426) 7. Prohibitions a. On banks b. On directors, officers, employees, or agents of banks c. On borrowers d. On public officials 8. Penalties for violations 9. Procedural Rules on service of summons to banks, foreclosure of mortgage, garnishment, etc.