Administrative Order No. 128




MALACAÑAN PALACE MANILA BY THE PRESIDENT OF THE PHILIPPINES [ Administrative Order No. 128, July 27, 1965 ] AUTHORIZING THE PYRAMID INSURANCE COMPANY, INC. TO BECOME A SURETY UPON OFFICIAL RECOGNIZANCES, STIPULATIONS, BONDS AND UNDERTAKINGS WHEREAS, Section 1 of Act No. 536, as amended by Act No. 2206, provides that whenever any recognizance, stipulation, bond, or undertaking conditioned for the faithful performance of any duty or of any contract made with any public authority, national, provincial, municipal, or otherwise, or of any undertaking, or for the doing or refraining from doing anything in such recognizance, stipulation, bond, or undertaking specified, is, by the laws of the Philippines, required or permitted to be given with one surety or with two or more sureties, the execution of the same or the guaranteeing of the performance of the condition thereof shall be sufficient when executed or guaranteed solely by any corporation organized under the laws of the Philippines, having power to guarantee the fidelity of persons holding positions of public or private trust and to execute and guarantee bonds or undertakings in judicial proceedings and to agree to the faithful performance of any contract or undertaking made with any public authority; WHEREAS, said section further provides that no head of department, court, judge, officer, board or body, executive, legislative, or judicial shall approve or accept any corporation as surety on any recognizance, stipulation, bond, contract, or undertaking, unless such corporation has been authorized to do business in the Philippines in the manner provided by the provisions of said Act No. 536, as amended, nor unless such corporation has, by contract with the Government of the Philippines, been authorized to become a surely upon official recognizances, stipulations, bonds, and undertakings; and WHEREAS, PYRAMID INSURANCE COMPANY, INC. is a domestic corporation organized and existing under the laws, of the Republic of the Philippines and fulfills the conditions prescribed by said Act No. 536, as amended. NOW, THEREFORE, I, DIOSDADO MACAPAGAL, President of the Philippines, by virtue of the powers vested in me by law, do hereby authorize PYRAMID INSURANCE COMPANY, INC. to become a surety upon official recognizances, stipulations, bonds, and undertakings, in such manner as under such conditions as are provided by law, subject to the conditions that the amount constituting the contributed surplus fund shall not, at any time, be withdrawn and paid back in cash to the contributing stockholders without prior recommendation and justification by the Insurance Commissioner, duly approved by the Secretary of Finance and provided further, that the moment PYRAMID INSURANCE COMPANY, INC. becomes indebted to any government instrumentality or political subdivision thereof, or to any government-owned or controlled corporation in the total amount of P50,000.00 accruing from the issuance of bonds, the same having become due and demandable, the issuance company must voluntarily desist from writing or issuing all kinds of government bonds until the outstanding liabilities in government bonds shall have been fully paid or settled. Non-payment of liabilities shall be a cause for the immediate revocation of the Administrative Order.1aшphi1 Done in the City of Manila, this 27th of July, in the year of Our Lord, nineteen hundred and sixty-five. (Sgd.) DIOSDADO MACAPAGAL President of the Philippines By the President: (Sgd.) JUAN S. CANCIO Acting Assistant Executive Secretary The Lawphil Project - Arellano Law Foundation