4. Garnishment of Deposits, Including Foreign Deposits

Peso deposits

RA 1405¹ does not preclude deposits from being garnished to ensure satisfaction of a judgment. There is no real inquiry in such a case, and if the existence of the deposit is disclosed, the disclosure is purely incidental to the execution process. (China Banking Corporation v. Ortega, G.R. No. L-34964, 31 January 1973)²

Foreign currency deposits

Foreign currency deposits covered by RA 6426 are exempt from attachment, garnishment, or any other order or process of any court, legislative body, government agency, or administrative body, subject to applicable jurisprudential exceptions. (RA 6426, Sec. 8)³

Note: Jurisprudence created 2 exceptions on ground of equity as discussed earlier.

Note: Deposits maintained by banks with the BSP as part of their reserve requirements shall be exempt from attachment, garnishments, or any other order or process of any court, government agency, or any other administrative body issued to satisfy the claim of a party other than the Government, or its political subdivisions, or instrumentalities. (NCBA, Sec. 103)⁴