Section 29 of the Central Bank
Act, as amended, pertinently provides:
Sec. 29.
Proceedings upon insolvency. – Whenever, upon examination by the head of the
appropriate supervising and examining department or his examiners or agents
into the condition of any banking institution, it shall be disclosed that the
condition of the same is one of insolvency, or that its continuance in business
would involve probable loss to its depositors or creditors, it shall be the
duty of the department head concerned forthwith, in writing, to inform the
Monetary Board of the facts, and the Board may, upon finding the statements of
the department head to be true, forbid the institution to do business in the
Philippines and shall designate an official of the Central Bank as receiver to
immediately take charge of its assets and liabilities, as expeditiously as
possible collect and gather all the assets and administer the same for the
benefit of its creditors, exercising all the powers necessary for these
purposes including, but not limited to, bringing suits and foreclosing
mortgages in the name of the banking institution.
Clearly, the
receiver appointed by the Central Bank to take charge of the properties of
Manila Bank only had authority to administer the same for the benefit of its
creditors. Granting or approving an "exclusive option to purchase" is
not an act of administration, but an act of strict ownership, involving, as it
does, the disposition of property of the bank. Not being an act of
administration, the so-called "approval" by Atty. Renan Santos
amounts to no approval at all, a bank receiver not being authorized to do so on
his own.
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