Practice question
A claimant bought a fabricated certificate from an outsider. PDIC determines it is not an authentic document or record of the closed bank and no actual bank deposit is established. Can possession alone compel deposit-insurance payment?
- Yes; possession conclusively creates a bank debt.
- No; the statutory authenticity and legitimate-deposit requirements are not satisfied.
- Yes; any document labeled deposit creates insurance.
- Yes; private purchase price is automatically an insured balance.
- No; because every certificate of deposit is excluded even if authentic.
Legal references
- RA 11840, Section 4 amending PDIC Charter Section 5(k): https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/95626
- PDIC official 2025 guidance, PHP1 million coverage effective March 15, 2025: https://www.pdic.gov.ph/files/ccd/PR-038-25%20New%20maximum%20deposit%20insurance%20coverage%20of%20P1%20Million%20takes%20effect%20on%20March%2015.pdf
- PDIC, Understanding Deposit Insurance brochure: https://www.pdic.gov.ph/files/Understanding%20Deposit%20Insurance%20Brochure.pdf
Answer this question in flashcards to review your response and continue practicing.