BUSINESS LAW - Bouncing Checks & Secrecy of Bank Deposits Law

1. Mr. X, a multiple-business owner failed to monitor his cash position because of his busy business schedule. Consequently, he issued a check with an amount which is more than the available balance in his bank account.

To avoid possible liability under BP 22, what should Mr. X do with his depository bank? Explain.

2. You are the CEO of AMB Bank. CIDG agents came to your bank head office. They bear an authorization from the Anti-Terrorism Council and a written order from the Court of Appeals authorizing them to inquire into and gather information about the bank accounts of Janjaranjan, a suspected terrorist, pursuant to the Human Security Act. You verified the CIDG agents' documents and find them to be authentic. Janjaranjan has two bank accounts with AMB Bank: (a) a Philippine Peso deposit in the amount of P60 million and (b) a US Dollar deposit in the amount of US$1.5 million.

As the CEO the bank, would you disclose and allow the inquiry into these bank deposits by the CIDG agents?