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Termination and Reinstatement of Insured Status of Banks Pursuant to the provisions in R.A 3591 as amended, and in relation to the PDIC Amendment Rules and Regulations, PDIC issued the following guidelines on the termination and reinstatement of insured status of banks due to non-payment of assessment; 1. PDIC shall terminate the insured status of a bank upon its continued failure or refusal to pay the assessment. 2. First demand letters shall be sent to banks through registered mail, thirty (30) days after the 31 January and 31 July prescribed deadlines for filing the certified statements and remitting the corresponding assessments. Interests charges at the legal rate of 12% per annum, reckoned from due date/s shall be imposed upon these banks. 3. Failure to comply within thirty (30) days after receipt of the first demand letter shall continue willful failure or refusal of the bank to file the required certified statement and pay the corresponding assessment and interest charges. Thereafter, PDIC shall send the second demand letter through registered mail. Penalty charges at twice the rate of interest charges of 24 % per annum shall be added thereon, reckoned 30 days from receipt of the first de4mand letter. 4. Termination proceedings of the bank’s insured status shall start 30 days after receipt by the bank of the PDIC’s demand letter. 5. The third and final demand letter shall be sent to the bank through registered mail. 6. The order termination shall shall be sent to the bank, by such mode of service as may be expeditious and efficient, upon the expiration of the 30 day period from date of mailing of the third and final demand letter. 7. The Corporation shall be publish the order of termination of the insured status in a newspaper of general and/or local of three(3) consecutive days. The cost of publication shall be chargeable to the bank. The bank shall give written notice of such termination to each of the depositors at his last address recorded in the books of the bank. Willful failure by the bank to do shall subject its directors and/or officers to an administrative fine not exceeding one thousand pesos(P1000.00) per day and/or render them criminally liable for violation thereof, which is punishable by a fine of not more than twenty thousand pesos(P20,000.00) and by imprisonment of not more than 5 years. 8. Failure of the bank for whatever reason to give written notice to t6he depositors shall not in any way affect the validity and effectivity of the order of termination of insured status against the depositors of the bank.

9. The insured deposits of each depositor in the bank as of the effective date of termination, less all subsequent withdrawals/debit adjustments from any deposits of such depositor, shall continue to be insured for a period of 90 days from the date of such termination. 10. The bank whose insured status has been terminated shall not be advertise nor hold itself out as having insured deposits unless, in the same connection, the bank shall state with equal prominence. Any director/officer of such bank who violates or causes he violation of the foregoing shall be criminally liable. 11. A bank whose insured status has been terminated may request for the Reinstatement of its insured status by means of written application filed with the Corporation. The PDIC Board of Directors may approve such application based on a recommendation that; a. the cause or causes of termination of insured status has/have been corrected b. that the bank may continue to operate with insurance cover depositors, creditors, and the general public, thereby not exposing the Deposit Insurance Fund to undue risk.