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Rural Bank of Calaca is now in danger of a bank run and possibly a closure. Met and
exchanged ideas regarding a possible merger/acquisition with the rural bank it is an
important aspect to dwell and study the history and trend of the bank for us to be able to
decide whether or not to acquire or merge with the rural bank.
Although there are reasons not to pursue with the merger or expansion due to not
only financial issues but also the legal workload that we about to endure once we
proceed with the acquisition.
But as the corporate lawyer of the bank it is a great opportunity to acquire the Rural
Bank of Calaca for the following reasons:
Expansion
Acquire mortgaged properties & Existing Investments
Gain confidence and trust of the depositors
These are only a few of the many issues to be discussed during mergers and
acquisitions but these factors are essential regarding the compliance or application of
law in our country. Now this presentation is made to discuss the said reasons for the
merger or acquisition of the Rural Bank of Calaca:
Expansion
The need to scout and look for prospective place to establish a bank will be
greatly attended to in engaging in this merger. Not only we have cut-down on costs on
searches but it already has established its key locations in the rural areas making it
easily and immediately accessible to its current depositors.
Under the General Banking Law, the rural banks clientele are mostly composed
of agricultural workers like fishermen, farmers, planters, business that are engaged in
the production of chemicals used in agricultural purposes and other undertakings as
may be determined by the Monetary Board.
The client history of the Rural Bank of Calaca will shed light on the trend of
banking practices of the people in the area, therefore obtaining such needed information
and data for our legal aspect will give aid to our decision-making in considering the
acquisition of the bank.
It is also an advantage to our company as well because these branch locations
will be able to cater as well our existing depositors and will definitely bring about positive
change and convenience in their banking practices but of course for us there will be
additional legal works for the existing cases of the rural bank and possible influx or
lawsuits from the current events of the liquidity issues.
The General Banking law also states that in the event of a merger of acquisition,
the number of directors will be limited at twenty-one (21).
Rural Bank of Calaca perhaps made some of these investments and there is a
need to investigate on these investments to ensure our protection from any possible
illegal activities which might have arisen in these engagements. Performing security
checks and other forms of due diligence will serve to shield us from any lawsuit or
violation that may arise from the said investments.