Practice question
A depositor's source account above maximum coverage is divided into accounts in unrelated persons' names more than 120 days before closure. The transferees cannot establish the regulatory beneficial-ownership exceptions, and the bank has no required transfer documents at takeover. They argue that being outside 120 days necessarily gives each separate insurance. Applying Linsangan, which answer is best?
- Every transfer outside 120 days necessarily earns separate insurance.
- The timing automatically proves valid donation documentation.
- PDIC may still determine beneficial ownership and consolidate accounts under the applicable rules; being outside that window does not itself prove separate insurance entitlement.
- The nominees automatically own the bank's entire estate.
- PDIC's insurance ruling necessarily invalidates every alleged civil donation.
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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