Section 10Sec./Art. 10

Section 10, subsections (a-1,) (c) and (d) is hereby amended to read as follows:

"(a-1) The permanent insurance fund hereinabove created is hereby increased to Three billion pesos (P3,000,000,000 . 00) and for this purpose, such sum as 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 One hundred thousand pesos (P100,000.00)."

"(c) Whenever an insured bank shall have been closed on account of insolvency payment of the insured deposits in such bank shall be made by the Corporation as soon as possible either BB[B(1) by cash or (2) by making available to each depositor a transferred deposit in another insured bank in an amount equal to the insured deposit of such depositor:Provided however, That the Corporation, in its discretion may require proof of claims to be filed before paying the insured deposits, and that in any case where the Corporation is not satisfied as to the viability of a claim for an insured deposit, it may require the final determination of a court of competent jurisdiction before paying such claim:Provided, further,That failure to settle the claim within six (6) months from the date of filing of the claim for insured deposit shall, upon conviction, subject the directors, officers or employees of the corporation responsible for the delay, to imprisonment from six (6) months to one (1) year:Provided, however,That the period shall not apply if the validity of the claim requires the resolution of issues of facts and or law by another office, body or agency including the case mentioned in the first proviso or by the Corporation together with such other office, body or agency.

"d) The Corporation, upon payment of any depositor as provided for in subsection (c) of this Section, shall be subrogated to all rights of the depositor against the closed bank to the extent of such payment. Such subrogation shall include the right on the part of the Corporation to receive the same dividends and payments from the proceeds of the assets of such closed bank and recoveries on account of stockholders' liability as would have been payable to the depositor on a claim for the insured deposits but, such depositor shall retain his claim for any uninsured portion of his deposit.

All payments by the corporation of insured deposits in closed banks partake of the nature of public funds, and as such, must be considered a preferred credit similar to taxes due to the National Government in the order of preference under Article 2244 of the New Civil Code:Provided, further,That this preference shall be likewise effective upon liquidation proceedings already commenced and pending as of the approval of this Act, where no distribution of assets has been made."