JUDICIAL BONDS
the Court Administrator of the Supreme Court prescribed the guidelines
before approval by the Judge concerned of all applications for
bail/judicial bonds.
As a parallel move with that of the Supreme Court to stop the
proliferation of spurious bail bonds and other judicial bonds, the
following rules shall govern the issuance of judicial bonds:
1. Judicial bonds can only be issued by the head office or
branches and district offices of insurance companies, duly registered
with the Insurance Commission to the exclusion of others;2. The insurance company issuing judicial bonds shall confirm
every first ten (10) days of the following month, the bonds it had
issued to a particular court copy furnished the Supreme Court and the
Insurance Commission. However in the event that the court requests for a
special or an urgent verification of a particular bond, the insurance
company shall act upon it within three (3) working days from date of
receipt and forward a copy to the Insurance Commission;3. Penalties
a) For failure to submit the list of judicial bonds a
company has issued for a particular month within ten (10) days of the
following month, a penalty of P500.00 per day of delay;b) For failure to act on the court’s request within the (3)
working days from receipt of the request, a penalty of P500.00 per day
of delay; andc) For failure to comply with any of the foregoing rules, a
surety company cannot invoke the defense that the bond in question is a
fake bond and hence shall be liable to pay its obligation under the
bond.
The form to be used in the submission required under item No. 2 is attached (Available upon request at ONAR, U.P. Law Complex, Diliman, Quezon City).
This Circular Letter amends IC Circular Letter No. 24-93 and takes effect immediately.
Adopted: 12 July 2000
(SGD.) EDUARDO T. MALINIS
Insurance Commissioner