PDIC to auction closed banks’ farm lots

The Philippine Deposit Insurance Corp. (PDIC) will put up for sale P27.2 million worth of 19 agricultural lots owned by padlocked banks.

PDIC said 19 agricultural lots in Luzon, Visayas and Mindanao would be auctioned off on Dec.15.

These include 16 agricultural lots, two of which will be sold as one; and three mixed agricultural and residentials lots, two of which have improvements.

Lot sizes of the properties are between 544 square meters and 380,000 sqm.

Rates for the properties start at a minimum disposal price of P307,800 to as much as P4.4 million.

The lots, owned by closed banks under liquidation by PDIC, are located in Aklan, Antique, Batangas, Bulacan, Iloilo, Lanao del Norte, Negros Occidental, Negros Oriental, Nueva Ecija, Palawan, and Rizal.

As the mandated liquidator, the PDIC sells closed bank-owned assets through public biddings and negotiated sales.

Proceeds of such transactions are added to the pool of liquid assets of the banks for distribution to uninsured depositors and other creditors subject to the rules on concurrence and preference of credits.

The disposal of these assets increases the chances of recovery of uninsured depositors and creditors of their trapped funds in the closed banks.

Meanwhile, proceeds from the sale of corporate assets are added to the Deposit Insurance Fund, PDIC’s main fund source for payment of valid deposit insurance claims.

PDIC reminded bidders of their responsibility to determine the actual condition, status, ownership, and other circumstances of the properties they want to acquire.