OCA CIRCULAR NO. 115-2003, August 29, 2003

For The information and guidance of all concerned, quoted hereunder
is the resolution of the Comt Eii Banc in Administrative Matter No.
03-03-18-SC dated 5 August 2003, to wit:

“WHEREAS, m civil actions or proceedings the filing of bond. may
be required, inter alia,.(2) before a writ (e.g., writ of attachments,
injunction, or replevin) may be issued; (b) before a person (e.g., a
guardian, receiver, executor, administrator, or trustee) may be allowed
to perform Ins duties; or (c) before an execution of-judgment pending
appeal may be granted;

WHEREAS, the purposes of the bond in such cases are for, among
other things, the protection of the rights and interests of the parties
which may be affected by the grant of the writ, by the action of the
person authorized to perform certain duties, or by the execution of
judgment pending appeal;

WHEREAS, there have been instances that motions or claims filed
against the bonds could not prosper for the reason that the bond had
long ceased to be effective either because the premiums thereon had not
been paid by the party who/which obtained the bonds, or the bonding
company was no longer in business at the time.

WHEREAS measures should be adopted to ensure that liability on
the bonds must be continuing until the final resolution or disposition
of the action or proceedings or any incident therein in connection with
which the bonds were issued.

NOW, THEREFORE, the Court hereby RESOLVES that:

1. Unless and until the court directs otherwise, the lifetime or
   duration of the effectivity of any bond issued in civil actions or
   proceedings or in any incident therein shall be from its approval by the
   court until the action or proceedings is finally decided, resolved, or
   terminated. This condition must be incorporated in the contract or
   agreement between the party who procured the bond and the surety or
   bonding, company and which contract or agreement shall be submitted to
   the court, for approval. The same condition shall be deemed incorporated
   in the contract or agreement and shall bind the parties notwithstanding
   their failure to expressly state the same in the said contract or
   agreement.

2. The surety or bonding company shall notify the court concerned
   and the parties to the action or proceedings of any act, event, or
   circumstances that may affect, its business or operations, such as
   corporate rehabilitation; amendment of its articles of incorporation
   that shortens corporate lifetime, bankruptcy; insolvency; or issuance of writs of execution, attachment, or garnishment against it. The notice, which shall, be given within ten (10) days from the occurrence of the
   act, event or circumstance, shall have as attachments thereto, certified
   true copies or authenticated documents evidencing, the same, act,
   event, or circumstance.

3. Upon the effectivity of this Resolution, no surety bond shall be
   approved by the court unless it complies with, the conditions set forth
   herein.

This resolution shall take effect on the first September 2003,
following its publication in a newspaper general circulation not later
than 15 August 2003.”

__29__ August 2003.