In a Memorandum to all Clerks of Court and Branch Clerks of Court, dated September 10, 1993 (Text available upon request at ONAR, U.P. Law Complex, Diliman, Quezon City), 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; and

c)      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