Insurance firm says Ralloses need P12-M bond
THE heirs of Rev. Fr. Vicente Rallos need not pay the P1.2-billion indemnity bond to facilitate the auction of the 9.7-hectare lot being developed by Filinvest Land Inc. in the South Road Properties (SRP).
Pat Navarro of the United Coconut Planters Bank (UCPB) General Insurance said the Ralloses need “only pay” P12 million as premium and tax expenses amounting to P3 million for a surety bond.
The amount represents 1 percent of the P1.2-billion bond being required by the court. But Navarro said the Ralloses could no longer recover the premium they paid.
If the Ralloses manage to raise funds to pay a cash bond of P1.2 billion, they can still recover the entire amount should there be no legal constraints in the future, Navarro added.
“The money is there anytime,” Roy Rallos told Cebu Daily News in a phone interview.
Earlier Jade Ponce, legal consultant of Cebu City Mayor Michael Rama, said the Ralloses can post the minimum amount of P120 million as surety bond or about 10 percent of the P1.2-billion surety bond.
Article continues after this advertisementRoy said their lawyers continue to discuss whether or not they have to give in to Filinvest’s demands.
Article continues after this advertisementThe Ralloses have until Dec. 12 to raise P1.2 billion to pay Filinvest Land Inc. or the Dec. 13 auction of the SRP lot won’t push through.
The amount will be set aside in case Filinvest seeks legal action in the future. The P1.2 billion represents Filinvest’s development costs for the lot, part of a P25-billion joint venture (JV) agreement with Cebu City.
The 9.7-hectare lot had been subjected to auction after Cebu City Hall refused to pay the P133 million ordered by the court as payment to the Rallos heirs for the city’s expropriation of their Sambag II property in 1963.
If the Ralloses can’t pay the amount, the court will order the Register of Deeds to lift the levy made on the SRP lots.
The public auction is set from 10 a.m. to 2 p.m. on Dec. 13 at the Sheriff’s Office located at the Palace of Justice in Cebu City.
Proceeds of the public auction will be given to the Ralloses.
The Cebu city government intends to file a petition for the issuance of a Temporary Restraining Order before the Court of Appeals to stop the public auction on Dec. 13. Reporter Ador Vincent Mayol
