By Bernadette H. Carreon
Horizon news staff

The Pacific Saving Bank receiver Kaleb Udui said that the defunct banking institution is in the middle of making arrangements to sell its fixed assets.
With this, the receiver said in the next two months, money is being collected from individuals who have not made payment on their loans. He said demand letters have been sent to them to require them to pay the loans or the matter will be taken to court.
He said that so far the receiver has $500,000 in collection, the money it has in the bank does not include loans that have been offset after the payout.
He said that those who have remaining deposits in the bank after the payout, is expected to get under 50 percent of the deposits.
However money that will be collected after the payout will be distributed to the depositors proportionately.
Udui also admitted that there is no guarantee that depositors will get all their deposits back.
The receiver will also sell the bank’s loans and will offer the whole bank for the sale.
He said that those loans that are under litigation could take time before it is resolved.
He said that out of the loans taken out from PSB, 40 percent are performing loans while 60 percent are considered bad loans.
He said the bad loans are under legal proceedings and could take awhile to resolve.
He said under the law, the receivership will end May of next year but the proposed amendments pending before Congress calls for a longer period for the receivership.
"The longer we can collect the more we can collect," Udui said.
Before the bank was closed, the deposits amount to at least $22 million.
The bank has made payout amounting to $2.4 million while it has offset loans of $2 million.