UCPB HOLDING STATEMENT ON EGI CASE

UCPB denounces the adverse ruling of Pasay City Regional Trial Court Branch
112 on a civil case filed against the Bank by its borrower E. Ganzon, Inc. as erroneous and
lacks factual and legal bases. The Bank has filed a Motion for Reconsideration (MR) last
July 28, 2016.

The Bank asserts that all its actions pertaining to the case have been appropriate
and legal. In fact, UCPB has been successful in two other proceedings initiated by EGI,
namely, a criminal case against UCPB for Other Deceits, and an administrative case
before the Bangko Sentral ng Pilipinas (BSP) for violations of pertinent banking laws.

The case stems from a series of loans that EGI obtained from the Bank from 1995
to 1998. When EGI failed to pay the amortization of its loans, both parties agreed to
foreclosure and dacion en pago arrangements which turned out to still be insufficient to
settle the total loan amount including interest, charges and transaction fees, costs and
expenses.

EGI alleges that UCPB acted in violation of the General Banking Law and of the
Bangko Sentral Act when it padded the amounts actually owed by EGI and when it made
false representations to EGI that its loans was much higher than it actually was.

The Bangko Sentral ng Pilipinas as a specialized body tasked with the

implementation of banking laws has found EGI’s complaint of padding as bereft of merit
and dismissed the same in its Resolution dated September 20, 2011.

EGI filed a Petition for Review under Rule 43 of the Rules of Court challenging the
BSP-Office of Special Investigation Resolution dated September 20, 2011 with the Court
of Appeals.

In its promulgated decision, the Special Fifteenth Division CA division affirmed the
decision of the BSP which stated that there was no factual and legal basis to hold UCPB
in violation of the General Banking Law 2000 and the new Central Bank Act (RA 7653).
Hence, EGI’s complaint was dismissed for lack of merit.