Administrative Order No. 96, June 4, 1964

AMENDMENT TO AUTHORITY GRANTED TO INSURANCE AND SURETY COMPANIES TO BECOME SURETIES UPON OFFICIAL RECOGNIZANCES, STIPULATIONS, BONDS, AND UNDERTAKINGS.

The authorities previously granted under the provisions of Act Numbered five Hundred and Thirty-Six, as amended by Act Numbered Twenty-Two Hundred and Six, to surety and insurance companies in the Philippines to become sureties upon official recognizances, stipulations, bonds, and undertakings in such manner and under such conditions as may be provided by law, are hereby amended, insofar as inconsistent herewith, so that, hereafter, the amount constituting the contributed surplus fund shall not at anytime be withdrawn and paid back in cash to the contributing stockholders without prior recommendation and justification by the Insurance Commissioner duly approved by the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 provided further, that the moment a surety company 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 bonds until the outstanding liabilities in government bonds shall have been fully paid or settled. Non-payment of liabilities shall be a cause for the immediate revocation of the Administrative Order.

Done in the City of Manila, this 4th day of June, in the year of Our Lord, nineteen hundred and sixty-four.

(Sgd.) DIOSDADO MACAPAGAL

President of the Philippines

By the President:

(Sgd.) CALIXTO O. ZALVIDAR

Acting Executive Secretary