Administrative Order No. 107, August 14, 1964

AUTHORIZING THE PHILIPPINE AMERICAN ACCIDENT INSURANCE COMPANY, INC., TO BECOME A SURETY UPON OFFICIAL RECOGNIZANCES, STIPULATIONS, BONDS, AND UNDERTAKINGS

WHEREAS, Section 1 of Act No. 536, as amended by Act No. 2206, provides that whenever any recognizance, stipulation, bond, or undertaking conditioned for the faithful performance of any duty or any contract made with any public authority, national, provincial, municipal, or otherwise, or any undertaking, or for the doing or refraining from doing anything in such recognizance, stipulation, bond, or undertaking specified is, by the laws of the Philippines, or by the regulations or resolutions of any public authority therein, required or permitted to be given with one surety or with two or more sureties, the execution of the same or the guaranteeing of the performance of the condition thereof shall be sufficient when executed or guaranteed solely by any corporation organized under the laws of the Philippines, having power to guarantee the fidelity of persons holding petitions of public or private trust and to execute and guarantee bonds or undertakings, in judicial proceedings and to agree to the faithful performance of any contract or undertaking made with any public authority;

WHEREAS, said section further provides that no head of department, court, judge, officer, board, or body executive, legislative, or judicial shall approve or accept any corporation as surety on any recognizance, stipulation, bond, contract, or undertaking, unless such corporation has been authorized to do business in the Philippines in the manner provided by the provisions of said Act No. 536, as amended, nor unless such corporation has, by contract with the Government of the Philippines, been authorized to become a surety upon official recognizances, stipulations, bonds, and undertakings; and

WHEREAS, THE PHILIPPINE AMERICAN ACCIDENT INSURANCE COMPANY, INC., is a domestic corporation organized and existing under the laws of the Republic of the Philippines and fulfills the conditions prescribed by said Act No. 536, as amended;

NOW, THEREFORE, I, DIOSDADO MACAPAGAL, President of the Philippines, by virtue of the powers vested in me by law, do hereby authorize THE PHILIPPINE AMERICAN ACCIDENT INSURANCE COMPANY, INC., to become a surety upon official recognizances, stipulations, bonds, and undertakings in such manner and under such conditions as are provided by law subject however, to the conditions that the amount constituting the contributed surplus fund shall not at any time be withdrawn and paid back in cash to the contributing stockholders without prior recommendation and justification by the Insurance Commissioner duly approved by the Secretary of Finance, and that the moment THE PHILIPPINE AMERICAN ACCIDENT INSURANCE COMPANY, INC., becomes indebted to any government instrumentality or political subdivision thereof, or to any government-owned or controlled corporation in the total amount of P50,000.00 accruing from the issuance of bonds, the same having been due and demandable, the insurance company must voluntarily desist from writing or issuing all kinds of government bonds until the outstanding liabilities in government bonds have been fully paid or settled. Non-payment of liabilities shall be a cause for immediate revocation of the Administrative Order.

Done in the City of Manila, this 14th day of August, in the year of Our Lord, nineteen hundred and sixty-four.

(Sgd.) DIOSDADO MACAPAGAL

President of the Philippines

By the President:

(Sgd.) CALIXTO O. SALVIDAR

Acting Executive Secretary