OCA CIRCULAR NO. 87-2004, August 09, 2004

The Land Bank of the Philippines (LBP) has allowed the Judiciary
to place fiduciary fund deposits of first and second level courts
(including Shari’a courts) in High Yield Savings Accounts (HYSAs).

HYSAs have the following features:

1) Minimum Deposit Requirement: Php 1,000,000.00;
2) Term: 30 days;
3) Interest Rate: 4.25% (prevailing rate as of 16 July 2004 );
4) Pre-termination Rate:

a) If pre-terminated on or before the 15th day from the date of
deposit: 1/4 of the rate given on the date of deposit or the
prevailing savings rate whichever is higher;
b) If pre-terminated after 15 days from the date of deposit but
before the 30 day minimum term: rate varies but it is never less than
the prevailing savings rate;

5) Documentation: HYSA Passbook;
6) Documentary Stamp Tax(es) [DST]: No DST required.

Upon receipt of this Circular, the amount deposited in the LBP
bank account for fiduciary funds shall be deposited in a HYSA for a term
of 30 days.

The trial court’s existing LBP savings/current account will be
maintained for purposes of accepting fiduciary funds received from the 1^st
day up to the last day of the month. Any amount in said account shall
then be deposited in the HYSA at the end of the month. Said High Yield
Savings Account (HYSA) shall always be renewed on the last day of the
month.

Any withdrawal of fiduciary funds shall be approved by the court
and shall first be taken from the LBP savings/current account being
maintained. If the amount in said account is not sufficient, then the
balance shall be taken from the HYSA which withdrawal shall be made
preferably on the last day of the month or at east after the 15^th day
thereof.

__09__ August 2004.