The Legal Environment in Banking

Thursday - Friday
9:00 am - 5:00pm

The lecture on “The Legal Environment of Banking” gives an overview
of the role of the Bangko Sentral ng Pilipinas (BSP) as well as other
government agencies in the creation and administration of banks. 
It familiarizes the students with the various laws, rules, doctines and
jurisprudence governing banking and its fiduciary role in the
bank-depositor and creditor-debtor relationship with the public.
There is a comprehensive discussion of the nature of the different
instruments, collaterals and documents used through the various
steps in the loan process from loan signing up to the handling of
non-performing accounts

Successful completion of the course enables the participant to:

    1.  Have a comprehensive overview of the powers of the
         Bangko Sentral ng Pilipinas (BSP) and the Monetary Board
         in the administration of banks from inception up to liquidation;

    2.  Familiarize  with the various laws and rulings to ensure that
         banks uphold their role as effective partners in the country's
         development and are faithful in their fiduciary duties;

    3.  Learn  the various laws, rules, doctrines and jurisprudence
         applicable in the relationship between the depositor and the
         bank in the deposit of funds, the granting of loans etc., giving
         a full delineation of the rights and obligations of both parties;

    4.  Analyze the documents used in bank lending operations,
         the various instruments and collateral options and their
         implications; and

    5.  Present  the various remedies available to the bank for
         problem accounts.

This module is designed for bank personnel wishing to gain an insight on other functional areas in the bank to which they have not been previously exposed, bank management/officer trainees, business graduates aiming for a career in banking, and those in the legal profession in search of an “immersion” course in banking.

This is a required module for those enrolling in the Center's Diploma Program in Banking.

  •  Laws and Rules Govern the Business of Banking    
  •  The Creation and Administration of Banks
  •  When a Bank Runs Aground
  •  Various Laws and Doctrines on Deposit
  •  General Laws of Governing Lending
  •  Types of Borrowers
  •  The Interest Rate
  •  Types of Collateral for Bank Loans
  •  Chattel Mortgage
  •  Mortgage Loan Limits
  •  Pledges
  •  Negative Pledge
  •  Assignment of Receivables/Deposits
  •  Guaranty/Suretyship
  •  Special Power of Attorney
  •  Negotiable Instruments Law
  •  The Bouncing Checks Law (BP 22/Passed 1979)
  •  Trust Receipts Law (PD 115)
  •  When a Loan Turns Sour
  •  Various Restructuring Schemes
  •  Dacion En Pago
  •  Foreclosures
  •  Criminal Actions
  •  Civil Actions
  •  Conclusion

is the Director for Credit Programs at the Ateneo-BAP Institute of Banking, the Program Director for Finance at the Ateneo Center for Continuing Education, and a professor of Finance at the Ateneo Graduate School of Business.