81 OG No. 40, 4425 (October 7, 1985)

[ PRESIDENTIAL DECREE NO. 1985, October 04, 1985 ]

FURTHER AMENDING REPUBLIC ACT NO. 3591, AS AMENDED BY INCREASING THE CAPITALIZATION (PERMANENT INSURANCE FUND) OF THE PHILIPPINE DEPOSIT INSURANCE CORPORATION FROM TWENTY MILLION PESOS TO TWO BILLION PESOS, AND APPROPRIATING FUNDS THEREFOR.

WHEREAS, the present capitalization of the Philippine
Deposit Insurance Corporation (PDIC) of twenty million pesos (P20,000,000.00) is
inadequate considering the present deposit insurance coverage of P40,000.00 per
depositor;

WHEREAS, the deposit insurance scheme is part of the
governmental machinery in stabilizing the banking system;

WHEREAS, the trust and confidence of the people in banks
will depend largely on the capability of the Philippine Deposit Insurance
Corporation to insure the safety of deposits in banks;

WHEREAS, it is a recognized fact that efficient harnessing
of savings in banks would provide funds which could be channeled to the
financing of development programs of the country;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Republic of the Philippines, by virtue of the powers vested in me by the
Constitution, do hereby order and decree the further amendment of Republic Act
No. 3591, as amended, as follows:

SECTION 1. Section 10 (a-1) of the same Act is hereby
amended, to read as follows:

"(a-1) The permanent insurance fund herein-above created is
hereby further increased to TWO BILLION PESOS (P2,000,000,000.00) and for this
purpose, such sum as may be necessary is hereby appropriated from the General
Fund; Provided, that the maximum amount of the insured deposit of any
depositor is hereby increased to forty thousand pesos
(P40,000.00)."

SEC. 2. This Decree shall take effect immediately.

DONE in the City of Manila, this 4th day of October, in the year of Our Lord,
nineteen hundred and eighty-five.

	(Sgd.) FERDINAND E. MARCOSPresident of the Philippines
	By the President:
	(Sgd.) JUAN C. TUVERA
		Presidential Executive Assistant

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