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PHILIPPINE LAWS, STATUTES & CODES
A collection of Philippine laws, statutes and codes not included or cited in the main indices of the Chan Robles Virtual Law Library.
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Section 1.
"Sec. 3.
Sec. 2.
"Sec. 4.
"All members of the Board of
Directors of the Rural Bank shall be citizens of the Philippines:
Provided, however, That no appointive or elective official, whether
full-time or part-time, shall at the same time serve as officer of any
Rural Bank except in cases where such service is incident to financial
assistance provided by the Government or a government-owned or
controlled corporation to the bank."
Sec. 3.
"Sec. 5.
"Loans may be granted by Rural
Banks on the security of lands without Torrens titles where the owner
of private property can show five years or more or peaceful, continuous
and uninterrupted possession in concept of owner; or of portions of
friar land estates or other lands administered by the Bureau of Lands
that are covered by sales contracts and the purchasers have paid at
least five years installment thereon, without the necessity of prior
approval and consent by the Director of Lands; or of portions of other
estates under the administration of the Ministry of Agrarian Reform or
other government agency which are likewise covered by sales contracts
and the purchasers have paid at least five (5) years installment
thereon, without the necessity of prior approval and consent of the
Ministry of Agrarian Reform or corresponding governmental agency; or of
homestead or free patent lands pending the issuance of titles but
already approved, the provisions of any law or regulations to the
contrary notwithstanding: Provided, That when the corresponding titles
are issued the same shall be delivered to the register of deeds of the
province where such lands are situated for the annotation of the
encumbrance: Provided, further, That in the case of lands pending
homestead or free patent titles, copies of notices for the presentation
of the final proof shall also be furnished the creditor rural bank and,
if the borrower-applicant fail to present the final proof within thirty
(30) days from date of notice, the creditor rural bank may do so for
them at their expense; Provided, furthermore, That the applicant for
homestead or free patent has already made improvements on the land and
on the loan applied for is to be used for further development of the
same or for other productive economic activities: Provided, finally,
That the appraisal and verification of the status of a land is a full
responsibility of the Rural Bank and any loan granted on any land which
shall be for the sole account of the Rural Bank to the exclusion of the
Central Bank counterpart.
"The foreclosure of mortgages
covering loans granted by Rural Banks and executions of judgments
thereon involving real properties levied upon by a sheriff shall be
exempt from the publications in newspapers now required by law where
the total amount of loan, including interests due and unpaid, does not
exceed Ten Thousand Pesos (P10,000.00) or such amount as the Monetary
Board may prescribe as may be warranted by prevailing economic
conditions. It shall be sufficient publication in such cases if the
notices of foreclosure and execution of judgment are posted in the most
conspicuous area of the Municipal Building, the Rural Bank and the
Barangay Hall where the land mortgaged is situated during the period of
sixty days immediately preceding the public auction or execution of
judgment. Proof of publications as required herein shall be
accomplished by affidavit of the sheriff or officer conducting the
foreclosure sale or execution of judgment and shall be attached with
the records of the case: Provided, That when a homestead or free patent
land is foreclosed, the homesteader or free patent holder, as well as
his heirs shall have the right to redeem the same within two years from
the date of foreclosure in the case of land not covered by a Torrens
title or two years from the date of registration of the foreclosure in
the case of land covered by a Torrens title: Provided, finally, That in
the case of borrowers who are mere tenants, the produce corresponding
to their share may be accepted as security."
Sec. 4.
"Sec. 7.
"Stock held by the Development
Bank of the Philippines, under the terms of this section, shall be made
preferred only as the assets upon liquidation and without the power to
vote and shall share in the dividend distributions not exceeding two
percent thereof without preference: Provided, however, That if such
stock of the Development Bank of the Philippines be converted into
common stock of the class provided for in section nine: Provided,
further, That pending the amendment of the Articles of Incorporation of
the Rural Bank, if necessary, for the purpose of reflecting the
conversion into common stock of preferred stock sold to private
shareholders, the transfer shall be recorded by the Rural bank in the
stock and transfer book and such shareholders shall thereafter enjoy
all the rights and privileges of common stockholders. The preferred
stock so transferred shall be surrendered and cancelled and the
corresponding common stocks shall be issued.
"The corporate secretary of the
Rural Bank shall submit to the Central Bank and the Securities and
Exchange Commission a report on every transfer of preferred stock to
private shareholders, and such report received by the Securities and
Exchange Commission shall form part of the corporate records of the
Rural Bank. When all the preferred shares of stock of a Rural Bank have
been sold to private shareholders, the Articles of Incorporation of the
Rural Bank shall be amended to reflect the conversion of the preferred
shares of stock into common stock. For this purpose the President, the
corporate secretary, and a majority of the Board of Directors shall
issue a certificate that all preferred shares have been sold and
transferred to private shareholders which, together with a copy of the
Articles of Incorporation, as amended, duly certified correct by the
said President, corporate secretary, and a majority of the Board of
Directors, shall be filed with the Securities and Exchange Commission,
which shall attach the same to the original Article of Incorporation on
file with said office.
"The Securities and Exchange Commission shall not register the amended
articles of incorporation unless accompanied by the certificate of
authority required under Section nine of the Republic Act Numbered
Three Hundred and Thirty-seven, as amended."
Sec. 5.
"Sec. 9.
Sec. 6.
"Section 11.
"(a)
"(b)
"(c)
"(d)
"With written permission of the Monetary Board of the Central Bank, any
Rural Bank may:
"(a)
"(b)
"(c)
"(d)
"Nothing in this section shall be construed as precluding a Rural Bank
from performing, with prior approval of the Monetary Board, all the
services authorized for savings and mortgage banks, or for commercial
banks, under Republic Act Numbered Three hundred and thirty-seven, as
amended, or from operating under an expanded banking authority as
provided in section 21-B of the same Act."
Sec. 7.
"Section 11-A.
Sec. 8.
"Section 19.
Sec. 9.
Sec. 10. Since 19.07.98.
Approved: April 1,
1980.
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