WHEREAS,
there were pending before Congress prior to the promulgation of
Proclamation No. 1081, dated September 21, 1972, urgent banking
measures proposing amendments to Republic Act No. 3518, entitled "An
Act Creating the Philippine Veterans Bank and for other Purposes",
which are vital to the national development program of the Government;chanroblesvirtualawlibrary
WHEREAS, one of these priority measures is the bill seeking to amend
the Charter of the Philippine Veterans Bank by defining the manner of
electing the members of the Board of Directors;chanroblesvirtualawlibrary
WHEREAS, it is necessary to effect reforms in the bank's operation and
to revitalize its structure as an important instrument to promote
the national development program of the government; chanroblesvirtualawlibrary
WHEREAS, the Court's decision which is final and executory has ordered
the election of the members of the Board of Directors on the 2nd
Tuesday of July 1973;chanroblesvirtualawlibrary
WHEREAS, a study has been made for the purpose of remedying the
impossibility of notifying and gathering in one single place the
510,000 veterans for the purpose of electing the members of the Board
of Directors, the tremendous expenses involved, aside from the problems
it will create before, during and after the annual meeting of the
stockholders;chanroblesvirtualawlibrary
WHEREAS, the result of the study was an integrated set of
recommendations which were accepted by the veterans leaders, with
modification by the Veterans Bank, and made the basis for this decree
to effect the reforms in the banking system and to render monetary and
credit policies more responsive to the requirement of economic
development of the veterans of the country. chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution as
Commander-in-Chief of all the Armed Forces of the Philippines, and
pursuant to Proclamation No. 1081 dated September 21, 1972, and General
Order No. 1 dated September 22, 1972, as amended, and in order to
effect the desired changes and reforms in the social, economic, and
political structure of our society, do hereby order and decree the
amendment to Republic Act No. 3518 as follows: chanroblesvirtualawlibrary
Section 1. Section 3 (b) of Republic Act Numbered
Thirty- five eighteen is amended to read as follows:cralaw:red
"(b) At least fifty-one per cent (51%) of the capital
stock of the Veterans Bank shall be divided into common shares which
shall be fully subscribed by the government of the Republic of the
Philippines for and in behalf of the veterans, their widows, orphans or
compulsory heirs as defined and determined under Section 4, Subsection
(c) of this Act, and shall be initially paid from the Veterans Trust
Fund provided for in Section 2, subsection (d) Republic Act Numbered
Seventeen hundred and eighty-nine as amended, and from out of earnings,
dividends or profits from the operations of the Veterans Bank and for
the payment of said subscription, all the available cash deposits with
the Philippine National Bank and/or any other banks to the credit of
the Veterans Trust Fund shall be transferred immediately to the
veterans Bank; Provided, That after the approval of this Act and
notwithstanding the provisions of any existing law and/or executive
orders, rules and regulations to the contrary every and all additional
cash payments on account of the said Veterans Trust Fund shall be
remitted and paid directly and exclusively to the said Veterans Bank to
be applied as additional paid-up payments of the aforesaid common
shares subscription: Provided, further, That the Reparations Commission
shall remit in full to the Veterans Bank the balance of Twenty Million
Dollars Veterans Trust Fund, and if the accumulated proceeds of the
said fund should be insufficient to cover in full the said balance, the
Reparations Commission is hereby authorized to cover the deficiency
from any funds under its custody: Provided, furthermore, That nothing
shall be transferred to, or received by, the said Veterans Bank
representing any portion of the proceeds of the aforesaid Veterans
Trust Fund except cash payments of the peso equivalent thereof at the
prevailing rate of exchange at the time the Reparations Commission
received such funds from the source. The shares shall be divided
equally among the veterans at the rate of one share of one hundred
pesos for each veteran of fraction thereof. The balance of about
forty-nine (49%) per cent shall be divided into preferred shares which
shall be opened for subscription by any recognized veteran, widow,
orphans or compulsory heirs of said veterans at the rate of one (1)
preferred share per veteran: Provided, That in case of failure of any
particular veteran to subscribe for any preferred share of stock so
offered to him as herein provided, within thirty (30) days from date of
receipt of notice, said share of stock shall be available for
subscription to other veterans in accordance with such rules or
regulations as may be promulgated by the Board of Directors. Any share
of stock corresponding to the capital stock subscribed and paid by the
Republic of the Philippines in the manner aforementioned, shall be
issued in the name of the Republic of the Philippines, in trust for the
benefit of veterans, their widows, orphans or compulsory heirs as
determined in this Act, and any share of stock subscribed and paid by
individual veteran shall be issued in the name of the individual
veteran, his widow, orphan or compulsory heir. The sale or transfer of
a share of stock of a veteran widow, orphan or compulsory heir of a
veteran shall not be allowed under any circumstances. Any share may be
sold or transferred to the Bank which shall issue the same to the
stockholders who are veterans, their widows, orphans or compulsory heir
shall be issued a total of more than one hundred shares."
Section 2. Section 6, Subsection (a) of Republic Act
Numbered Thirty-five hundred and eighteen is hereby amended to read as
follows:cralaw:red
"Sec. 6. Qualifications of per diems of the Board
of Directors. —chanroblesvirtualawlibrary
"(a) The affairs and business of the Veterans Bank
shall be directed and its property managed, controlled and preserved,
unless otherwise provided in this Act, by a Board of Directors
consisting of eleven (11) members to be composed of three (3)
ex-officio members to wit: the Administrator of the Veterans Affairs
Office, the President of the Veterans Federation of the Philippines,
and the Secretary of National Defense, and the remaining members
of which five shall come from Luzon, two from Visayas, one from
Mindanao who shall be veterans of good standing, college graduates,
with formal business training and/or experience in banking and finance
for a period of five years, and who are all actually and physically
residing in their region, shall be appointed by the President of the
Philippines, during the existence of Proclamation No. 1081 dated
September 21, 1972, as amended by Proclamation No. 1103 dated January
17, 1973, who shall hold office for one year and until their successors
are duly appointed and qualified. After the lifting of Proclamation
1081, as amended by Proclamation No. 1103, the eight members of the
Board of Directors shall be elected annually by the stockholders of the
respective region in the manner prescribed by By-Laws of the Bank:
Provided, That no director, officer, or employee of any other bank
shall be eligible as member of the Board of Directors of the Veterans
Bank: Provided, further, That the members of the Board of Directors,
shall receive a per diem allowance of Fifty Pesos (P50.00) for every
meeting of the Board actually attended by them.
Section 3. Section 8 of the same Act is amended to
read as follows:cralaw:red
"Sec. 8. President and Vice Presidents — Appointment
and removal — Salaries — The Chief executive of the Bank shall be the
President who shall be chosen by the Board of Directors. He shall be
assisted by an Executive Vice-President and such other Vice-Presidents
who shall be elected and may be removed only for cause by the Board of
Directors. The President and the Executive Vice-President shall possess
practical experience in banking or finance as executives for at least
five years. The salaries of the President, Executive Vice-President and
such other Vice-President and such other Vice-Presidents shall be fixed
by the Board of Directors.
Section 4. Section 22 of the same Act is amended to
read as follows:cralaw:red
"Sec. 22. Allocation of Net Profits — At the close of
each calendar year, the Bank shall determine the result of its
operations, in the determination of which, adequate allowances
shall be made for probable losses, and the resulting net profits after
taxes shall be distributed as follows:cralaw:red
"(a) Twenty per cent (20%) of such net profit shall
accrue to the reserve account: Provided, That should the accumulated
reserves equal the authorized capital of the Bank, the twenty per cent
(20%) herein authorized shall cease to accrue to the reserve account
but shall be distributed pursuant to the subsection immediately
following:cralaw:red
"(b) From the remaining eighty per cent (80%) of the
net profit shall be deducted the guaranteed earnings of the preferred
shares of stock owned by the individual veterans, their widows, orphans
or compulsory heirs. Provided, That the share in the net profits
corresponding to the Republic of the Philippines shall first be applied
in payment of the Capital stock subscription, until said shares shall
have been fully paid. Thereafter, fifteen per centum (15%) of the net
profit after deducting the guaranteed earnings of the preferred shares
shall be paid in cash and be held strictly as Trust Fund by the Board
of Trustees as hereinafter provided in Section 23 hereof and shall be
available exclusively for "grants-in-aid" to veterans, their widows,
orphans or compulsory heirs, for educational, social, charitable, and
rehabilitation purposes, to organizations doing services for the
cause of the veterans, and for such other purposes beneficial to the
veterans: Provided, however, That the equivalent of not to exceed five
per cent (5%) of every annual cash payment made to the Board of
Trustees as aforesaid shall be available for expenses of
administration, office equipment and supplies, actual and necessary
expenses incurred by members of the Board of Trustees either in
attendance upon meeting of the Board or upon other official business
authorized by resolution thereof, and for fixed compensation of a Board
Secretary and such other officials and employees of said Board of
Trustees: Provided, further, That no amount of grants-in-aid exceeding
Five Hundred Pesos (P500.00) shall be granted to any indigent veteran,
widow, orphan or compulsory heir under such rules and regulations
promulgated by the Board of Trustees: and Provided furthermore, That
any and all expenditures of said trust funds shall be subject to audit
by the Auditor of the Department of National Defense in accordance with
generally accepted accounting practices. The Auditor of the Department
of National Defense shall serve as Ex-Officio Auditor of the Board of
Trustees. chanroblesvirtualawlibrary
"After paying the share of the Board of Trustees of the veterans of
World War II, such percentage of the net profits shall be paid in cash
to the Veterans Federation of the Philippines as shall be deemed
necessary to fund its operations and attain the objectives set forth in
R. A. No. 2640: Provided, That any and all expenditures of said fund by
the Veterans Federation of the Philippines shall be subject to audit by
the Auditor of the Department of National Defense in accordance with
the generally accepted accounting practices, and a report of such audit
be submitted to the Secretary of National Defense.
"The balance may be distributed as dividends to holders of common
stocks: Provided, That no dividends shall be distributed until full
payment of the subscribed common shares of stocks."
Section 5. Section 23 of the same Act is amended to
read as follows:cralaw:red
"Sec. 23. Board of Trustees of World War II. — There
is hereby created a Board of Trustees for the Veterans of World War II
to be known as the Board of Trustees of the Veterans of World War II,
consisting of eleven (11) members, two (2) of whom shall be ex-officio
members and nine (9) regular members. The Ex-Officio members shall be
the President of the Veterans Federations of the Philippines and the
Administrator of the Veterans Affairs Office. The nine (9) regular
members shall be elected by the Supreme Council of the Veterans
Federation of the Philippines organized pursuant to Republic Act
Numbered Twenty- six hundred and forty.
"The Board of Trustees of the Veterans of World War II shall be a
continuing board, and the term of the regular members thereof shall be
three (3) years and shall serve as such until their successors shall
have been elected and have qualified. The first regular members
hereunder elected shall serve as follows: The first group who shall
serve for a full term of three (3) years shall consist of those
obtaining the three highest number of votes, the next three (3) highest
votes; and the rest shall belong to the third group who shall serve for
a term of one (1) year.
"The Board of Trustees shall, upon a majority votes of all its members,
elect its Chairman, vice chairman, and secretary, which secretary may
or may not be a member of the Board, at such time and place as shall be
provided for in its by-laws. The Board shall appoint such personnel as
may be necessary and fix their compensation.
"Per diem allowance for every meeting of the Board actually attended by
such members shall not exceed fifty pesos (P50.00) each.
Section 6. Section 27 of the same Act is hereby
amended by adding a second sentence thereto, so that as amended, said
section will read as follows:cralaw:red
"Sec. 27. Veterans Bank authorized to receive deposit
of government funds as a Government Depository. — The Secretary of
Finance, the National Treasurer and his authorized representative, city
and municipal treasurers as well as official custodians of public funds
or those belonging to government-owned or controlled corporations are
hereby authorized to make and actually maintain deposits of any
government or corporation funds with the Veterans Bank, which is hereby
declared to be a government depository. The provisions of existing laws
to the contrary notwithstanding, the status of the Veterans Bank as a
government depository is hereby made permanent, and for this purpose
only and all attempts to render the provisions of the section nugatory
shall be void ab initio and deemed contrary to law.
Section 7. The same Act is further amended by adding
the following section immediately after Section 27 thereof, which read
as follows:cralaw:red
"Sec. 27-A. Membership in the Government Service
Insurance System. — All permanent officials and employees of the
Veterans Bank and the Board of Trustees of the Veterans of World War II
shall be members of the Government Service Insurance System for
purposes of insurance and retirement." chanroblesvirtualawlibrary
Section 8. This Decree shall take effect immediately.
Done in the City of Manila,
this 9th day of July, in the year of Our Lord, nineteen hundred and
seventy-three.
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