SC CIRCULAR NO. 13-92, March 01, 1992

OFFICE OF THE COURT ADMINISTRATOR

Our attention has been called by the Treasurer of tlv»
Philippines that collections from bailbonds. rental deposits and other fiduciary
collections are being deposited with the Provincial, City and Municipal
Treasurers in compliance with Circular No. 5 dated November 25, 1982, issued by
then Chief Justice Enrique M. Fernando, which procedure runs counter to the
provisions embodied in the General Appropriations Act for Fiscal Year 1992,
specifically Sections 4 and 12 of its General Provisions, to wit:

1) Section 4 provides that trust receipts Bhall be
treated as a trust liability of the agency concerned and deposited in an
authorized government depository bank or in the National Treasury as the case
may be xxx; Provided, xxx, that if the amount is deposited in a savings account,
the interest shall accrue to the General Fund and shall be remitted to tho
National Treasury at the end of each quarter.

2) Section 12 provides that performance bonds and deposits
filed or posted by private entities with agencies of tho Government shall be
deposited in r.n authorized government depository bank as trust liabilities under tho name of the agency concerned, the interest thereon and any forfeited
amounts to be recorded as income of the General Fund and remitted to the
National Treasury.

Conformably herewith, Circular No. 5, dated November 25, 1982,
is hereby revoked and declared of no further force or effect. The following
procedure is therefore, prescribed in the administration of Court Fiduciary
Funds:

Guidelines in Making Deposits

1) Deposits shall be made under a savings account. Current
account can alao be maintained provided that it is on an automatic transfer of
current account from savings.

2) Deposits shall be made in the name of the Court.

3) The Clerk of Court shall be custodian of the Passbook to be
issued by the depository bank and shall advise the Executive Judge of the bank’s
name, branch and savings/current account number.

Guidelines in Making Withdrawals

1) Withdrawal slips shall be signed by the Executive Judge and
countersigned by the Clerk of Court.

2) If maintaining a current account,
withdrawals shall be made by checks. Signatories on the check shall likewise be
the Executive Judge and the Clerk of Court..

All collections from bailbonds, rental deposits and other
fiduciary collections shall be deposited immediately by the Clerk of Court
concerned, upon receipt thereof, with an authorized government depository
bank.

Interests earned on these deposits and any forfeited amounts
shall accrue to the General Fund of the government. Within two (2) weeks after
the end of each quarter, the Clerk of Court shall withdraw such interests and
forfeited amounts and shall remit the same to the National Treasury under a
separate Remittance Advice, duplicate copy thereof to be furnished the Chief
Accountant of the Supreme Court for record and control purposes.

No withdrawals, except as specifically provided in the
immediately proceeding paragraph, shall be allowed unless there is a lawful
order from the Court that has jurisdiction over the subject matter involved.

Only one depository bank shall be maintained and said bank must
be formally informed by the Executive Judge as to who are the authorized
signatories to the withdrawal slips.

Exept in instances specifically mentioned in the immediately
suceeding paragraph, all fiduciary collections currently deposited with the
local treasures shall be withdraw therefrom and deposited with the
saving/current accounts maintained by the courts for these collections.

In localities where there are no branches of authorized
government depository banks or, even if there be a branch but it is impractical,
for justifiable reasons, to miantain deposited by the Clerk of Court with the
Provincial, City or Municipal Treasurer. In either case, the Clerk of Court with
the Provincial, City or Municipal Treasurer. In either case, the Clerk of Court
must first seek a favorable recommendation from the Executive Judge.

Within two (2) weeks after the end of each quarter, all Clerks
of Court- are hereby required to submit to the Chief Accountant of the Supreme
Court a quarterly report indicating the outstanding balance maintained with the
depository bank or local treasurer, and the date, nature and amount of all
deposits and withdrawals made within such period.

This Circular is effective as of this date.

March 1, 1992.