Practice question
A business makes a genuine payment to an unrelated supplier, transferring beneficial ownership for goods actually supplied. The valid consideration and transfer are properly documented in the bank's records at PDIC takeover, and no fictitious insurance-multiplication arrangement exists. Does the mere transfer into another person's account establish prohibited splitting?
- Yes; every inter-person transfer is prohibited.
- No; the stipulated genuine ownership transfer must be distinguished from transfers to persons with no beneficial ownership.
- Yes; valid consideration is always irrelevant.
- Yes; the supplier's separate legal rights automatically vanish.
- No; because all transferred accounts are exempt from verification.
Legal references
- PDIC Charter, as amended through RA 11840, current consolidated text, deposit-splitting provision, https://www.pdic.gov.ph/files/PDIC%20Charter%202022.pdf
- PDIC Regulatory Issuance 2009-003, Parts III–V, https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/10/50378
- Linsangan v. PDIC, G.R. No. 228807, 11 February 2019, https://lawphil.net/judjuris/juri2019/feb2019/gr_228807_2019.html
- PDIC, maximum coverage increase effective 15 March 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
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