Upon maturity of the time deposit, the bank failed to remit. By reason of punitive action taken by Central Bank, the bank has been prevented from performing banking operations. Is the bank still obligated to pay the time deposits despite the fact that its operations were suspended by the Central Bank?

The suspension of operations of a bank cannot excuse non-compliance with the obligation to remit the time deposits of depositors which matured before the bank’s closure. (Overseas Bank of Manila v. CA, G.R. No. 45886, Apr. 19, 1989)