The Court of Appeals issued a temporary restraining order on the liquidation of AMA Rural Bank of Mandaluyong Inc. by state-run Philippine Deposit Insurance Corp.
PDIC said Wednesday it was constrained to stop the liquidation process for 60 days. The TRO was issued after the majority stockholders of AMA Bank questioned Monetary Board Resolution No. 1705.D dated Nov. 7, 2019.
PDIC took over the assets and affairs of the closed rural bank on Nov. 8, 2019 but said the accountable directors, officers and employees of the bank refused to account for, surrender and turn over the records under their accountabilities, custody and possession despite demand.
It earlier said that the refusal to account for, surrender and turn over records would delay the payment of the claims of AMA Bank’s depositors for insured deposit. PDIC said that faced with another setback, the TRO would prevent it from further continuing the inventory-taking of bank records during the 60 days of its effectivity starting Nov. 26.
“We assure our depositing public that the PDIC’s paramount commitment is to expedite the validation of bank records to be able to immediately pay the insured depositors of AMA Bank. We have in fact resorted to alternative procedures to do just that when the TRO was issued. We appeal to the depositors for their understanding,” said PDIC president Roberto Tan.