MANILA, April 29 --The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) prohibited Palm Tree Bank, Inc. from doing business in the Philippines through MB Resolution No. 482.A dated April 22, 2021, which also directed the Philippine Deposit Insurance Corporation (PDIC), as Receiver, to proceed with the takeover and liquidation of the bank.

The PDIC took over the bank on April 24, 2021.

For the safety of the bank clients and local residents, the PDIC field personnel complied with the health, quarantine and travel protocols in accordance with Resolution No. 98-A issued by the Inter-Agency Task Force for the Emerging Infectious Disease (IATF). The same Resolution also authorized the PDIC personnel to travel on official business unimpeded to ensure that the PDIC is able to fulfill its mandates under the law.

Palm Tree Bank, Inc. is a two-unit rural bank with Head Office located at Door #5 Global Agro Bldg., Kolambog, Barangay Lapasan, Cagayan de Oro City (Capital), Misamis Oriental. Its lone branch, Cotabato City Branch, is located at EC Tanghal Bldg., No. 5 Don Roman Vilo St., Brgy. Poblacion VI, Cotabato City. Latest available records show that as of December 31, 2020, Palm Tree Bank, Inc. has 1,716 deposit accounts with total deposit liabilities of PhP23.2 million, of which 95.8% or PhP22.3 million are insured deposits.

The PDIC assured depositors that all valid deposits and claims will be paid up to the maximum deposit insurance coverage of PhP500,000.00 per depositor.

Individual account holders of valid deposits with balances of PhP100,000.00 and below, and who have no outstanding obligations nor have not acted as co-makers of obligations with Palm Tree Bank, Inc., are not required to file deposit insurance claims.

These individual depositors must ensure that they have complete and updated addresses with the bank. Depositors may update their addresses by submitting Mailing Address Update Forms (MAUF) until May 7, 2021, either through the dropbox available at the bank premises, or by sending a scanned copy of said Form and valid ID to email address, palmtree-pad@pdic.gov.ph.

MAUF will be made available at the bank premises or may be downloaded from the PDIC website at www.pdic.gov.ph. Insurance payments for valid deposits with balances of PhP100,000.00 and below will be made through postal money order and targeted to be sent via mail starting on 27 May 2021.

For business entities and all other depositors who are required to file claims for insured deposit, receiving of claims is targeted to start by June 7, 2021. Details will be announced through the PDIC website www.pdic.gov.ph, and PDIC's official Facebook page, www.facebook.com/OfficialPDIC.

Borrowers are likewise reminded to continue paying their loan obligations with the closed Palm Tree Bank, Inc. and to transact only with designated PDIC representatives. The procedures for settlement of loan obligations are available in the PDIC website.

For more information on the requirements and procedures for filing deposit insurance claims and settlement of loan obligations, depositors and borrowers of the bank are enjoined to attend the virtual Depositors-Borrowers' Forum scheduled on May 25, 2021. Details of the Forum will also be announced in the PDIC website and Facebook page.

As provided for by the PDIC Charter, the PDIC shall likewise accept Letters of Intent from interested banks and non-bank institutions for possible purchase of assets and assumption of liabilities (P&A) as a mode of liquidating Palm Tree Bank, Inc. Letters of intent should be submitted within 60 days from takeover date subject to compliance with the requirements prescribed under the Guidelines in Pre-qualifying Proponents and Evaluating the Proposals for Purchase of Assets and Assumption of Liabilities Mode of Liquidating Closed Banks which can be accessed in the PDIC website.

To ensure the safety of all concerned and observance of health protocols, all clients of the bank may communicate with PDIC through any of the following modes: Public Assistance Hotline during office hours at (02) 8841-4141, Toll-Free Hotline at 1-800-1-888-PDIC (7342) during office hours for those outside Metro Manila, e-mail to palmtree-pad@pdic.gov.ph or Facebook private message.

In view of the strict health protocols, visits to the PDIC will be on appointment basis only. Appointment schedule may be secured through telephone, email or Facebook private message. (PDIC)