Professional Documents
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MONETARY BOARD
204 SCRA 767 (1991)
5. Gr. No. 81304 - BF Homes files for restoration of financing facilities of BF.
• June 29, 1984 - Emergency Advance and P3B credit line and placed under
conservatorship
• Forbid BF to do Business
• January 20, 1988 - Judge Cosico Report - Iphelp closure and liquidation.
FACTS
2. Gr. No. 77255-68 - Foreclosure of properties of Top Management Programs Corp. and Plar
Development Corp. (Loan)
thirdly, the department head concerned shall inform the Monetary Board
in writing, of the facts; and
lastly, the Monetary Board shall find the statements of the department
head to be true.
HELD:
Tiaoqui based his report on an incomplete examination of petitioner bank and
outrightly concluded therein that the latter's financial status was one of insolvency
or illiquidity.
The examination of petitioner bank was officially terminated only when Central
Bank Examination officer-in-charge Dionisio Domingo submitted his final report
of examination on March 4,1985. (Note: Order of Closure was 1-25-85)
The conclusion arrived at by the Board cannot be given weight and finality as
the report itself admits the inadequacy of its basis to support its conclusion.
HELD:
The Central Bank may, at its discretion, likewise grant advances to banking
institutions, even during normal periods, for the purpose of assisting a
bank in a precarious financial condition or under serious financial
pressures brought about by unforeseen events, or events which, though
foreseeable, could not be prevented by the bank concerned. Provided,
however, That the Monetary Board has ascertained that the bank is not
insolvent and has clearly realizable assets to secure the advances. Provided,
further, That a concurrent vote of at least five members of the Monetary
Board is obtained.
HELD:
2. The petitions in G.R. No. 70054, 78767 and 78894 are GRANTED
and the assailed order of the Central Bank and the Monetary Board
dated January 25, 1985 is hereby ANNULLED AND SET ASIDE. The
Central Bank and the Monetary Board are ordered to reorganize
petitioner Banco Filipino Savings and Mortgage Bank and allow the
latter to resume business in the Philippines under the comptrollership
of both the Central Bank and the Monetary Board and under such
conditions as may be prescribed by the latter in connection with its
reorganization until such time that petitioner bank can continue in
business with safety to its creditors, depositors and the general public.
SO ORDERED.
END