THE Marianas Public Lands Authority has asked the Superior Court to allow it to intervene and join acting Commerce Secretary Fermin Atalig as co-plaintiff in Bank of Saipan’s receivership action.
MPLA, through its legal counsel Alan L. Lane, requested the court that it be treated equally with other private depositors of Bank of Saipan by allowing it to withdraw at least 10 percent of the face value of all the other certificates of deposit it has with the bank.
Otherwise, MPLA said it should be allowed to redeem its certificates of deposit as they mature.
MPLA currently has seven certificates of deposit at Bank of Saipan, with a total face value of $8,135,724, excluding accrued interest.
Lane in court papers said Bank of Saipan receiver’s report places a total freeze on withdrawals of government deposits, while allowing private depositors’ limited withdrawals.
“Such a plan may be detrimental to government depositors in the long run, and specifically to MPLA,” Lane said.
“Without a voice in opposition to such a plan, or in the alternative, a voice in determining a proper course of action to be taken by the receiver, MPLA faces substantial risk as the largest government agency depositor and perhaps the largest (Bank of Saipan) depositor,” Lane said.
He said MPLA’s funds, although labeled “government” funds, are in fact funds belonging to people of NMI descent.
“They are not public funds. As such, they should be treated as private funds,” he said.
Lane said that last April 27, prior to the closure of the bank, two MPLA CDs matured for redemption, each having a face value of $1,309,428 excluding interest.
At the time of the attempted redemption of the two matured certificates of deposit, the bank had no legal authority or other justification to withhold payment upon demand, he said.
