Final Decision of the Supreme Court dated 14 August 2017 Relative to the Revocation of License to Operate as a Non-Stock Savings and Loan Association (NSSLA) of PAL Employees' Savings and Loan Association, Inc.

ElANoKo SeNrnaL NG pruterNas OFFICE OF THE DEPUTY GOVERNOR FINANCIAL SUPERVISION SECTOR CIRCULAR LETTER NO. Ct.2018.049 To ATL BANKS AND NON.BANK FINANCIAT INSTITUTIONS Subject : Final Decision of the Supreme Court dated 14 August 2017 Relative to the Revocation of License to Operate as a Non-Stock Savings and Loan Association (NSSLA) of PAL Employees' Savings and Loan Association, lnc. This is further to Circular Letter No. CL-2013-018 dated 12 March 20L3, informing all banks and non-bank financial institutions that the Monetary Board, in its Resolution No. 238 dated 7 February 2OL3, approved the revocation of license to operate as an NSSLA of PAL Employees' Savings and Loan Association, Inc. (PESALA) pursuant to Section 22 of Republic Act No. 8367, otherwise known as the "Revised Non- Stock Savings and Loan Association Act of L997". Subsequent to the revocation of its license as an NSSLA, PESALA filed a Complaint dated 11 March 20L3, for Injunction and Nullification of Resolution, with application for Stotus Quo Ante Order (SQAO), Temporary Restraining Order (TRO) and Writ Preliminary Injunction (WPl), with the Regional Trial Court, Pasay City. The Complaint was raffled to Branch 117 ("RTC Pasay''). RTC Pasay, in its order dated 22 April2OL3, granted PESALA's application for a writ of preliminary injunction. RTC Pasay also denied BSP's Motion to Dismiss dated 4 April 2013 in Order dated 3 December 2013. BSP fifed a Petition for Certiorari with the Court of Appeals (CA) questioning the aforementioned Orders of RTC Pasay. On 4 November 2015, the CA granted the Petition for Certiorori in Decision dated 4 November 2Ot6. PESALA's Motion for Reconsideration was denied by the CA in Resolution dated 12 January 20L7. On 10 March 20L7, PESALA filed a Petition for Review on Certiorari to the Supreme Court (SC) asking the High Court to reverse the Decision and Resof ution of the CA. The SC, in Minute Resolution dated 24 April 2OL7, denied PESALA's Petition. PESALA's Motion for Reconsideration was denied with finality in Resolution dated 14 August 20L7.

In view of the aforementioned pronouncements of the cA and sc, there is now no legal impediment to the enforcement of MB Res. No. 238 dated 7 February 2013 revoking PESALA's license to operate as an NSSLA. fu4+< t G. FONACIER lo luty zota Page 2 ot 2