OTHER BANK FUNCTIONS

Estrella, Jin Paula C.

 SECTION 53. OTHER BANKING
SERVICES
53.1. Receive in custody funds, documents
and valuable objects;

53.2. Act as financial agent and buy and sell,

by order of and for the account of their
customers, shares, evidences of indebtedness
and all types of securities;
 53.3. Make collections and payments for the
account of others and perform such other
services for their customers as are not
incompatible with banking business;

53.4. Upon prior approval of the Monetary Board,

act as managing agent, adviser, consultant or
administrator of investment
management/advisory/consultancy accounts; and
 53.5. Rent out safety deposit boxes.

Case: CA Agro-Industrial
Development Corporation v. Court of
Appeals

-> the contract for the rent of a safety deposit box is a

special kind of deposit

-not a contract of lease under Art. 1643

-relationship bet. Bank and the renter -> bailee and bailor
 Consequently, stipulation in the contract stating that
the bank shall not be obliged to exercise any
diligence over the contents of the safety deposit box
is void.
Case: Luzon Sia v. Court of
Appeals and Security Bank and
Trust Company

Art. 1173.
xxx xxx
If the law or contract does not state the diligence which is to be
observed in the performance, that which is expected of a good father
of a family shall be required.

Hence, any stipulation exempting the depositary from

any liability arising from the loss of the thing deposited
on account of fraud, negligence or delay would be void
for being contrary to law and public policy.