A
collection of Philippine laws, statutes and codes
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theChan Robles Virtual Law Library
This page features the full text of
Republic Act No. 7400
AN
ACT FURTHER AMENDING REPUBLIC ACT NUMBERED THREE THOUSAND FIVE HUNDRED
NINETY-ONE, AS AMENDED, OTHERWISE KNOWN AS THE CHARTER OF THE
PHILIPPINE
DEPOSIT INSURANCE CORPORATION, AND FOR OTHER PURPOSES.
REPUBLIC
ACT NO. 7400
AN
ACT FURTHER AMENDING REPUBLIC ACT NUMBERED THREE THOUSAND FIVE HUNDRED
NINETY-ONE, AS AMENDED, OTHERWISE KNOWN AS THE CHARTER OF THE
PHILIPPINE
DEPOSIT INSURANCE CORPORATION, AND FOR OTHER PURPOSES.
SECTION
1. Section 2 of Republic Act
No. 3591, as amended, is hereby further amended to read as follows:chanrobles virtuallaw libraryred
"Sec.
2. The powers and functions of
the Corporation shall be vested in and exercised by a Board of
Directors
which shall be composed of five (5) members as follows:chanroblesvirtualawlibrary"(a) The
Secretary of Finance who shall be the ex officio Chairman of the Board
without compensation.
chanrobles virtuallaw libraryred"(b) The
Governor of the Central Bank, who shall be the ex officio member of the
Board without compensation.
"(c) The
President of the Corporation, who shall be appointed by the President
of
the Philippines from either the Government or private sector to serve
on
a full-time basis for a term of six (6) years. The President shall also
serve vice chairman of the Board.chanrobles virtuallaw libraryred
"(d) Two
(2) members from the private sector, to be appointed for a term of six
(6) years without reappointment from the President of the Philippines:
Provided, That of those first appointed, the first appointee shall
serve
a period of two (2) years.
"No
person shall be appointed as member of the Board unless he be of good
moral
character and of unquestionable integrity and responsibility, and who
is
of recognized competence in economics, banking and finance, law,
management
administration or insurance, and shall be at least thirty-five (35)
years
of age. For the duration of their tenure or term in office and for a
period
of one year thereafter, the appointive members of the Board shall be
disqualified
from holding any office, position or employment in any insured bank.chanrobles virtuallaw libraryred"Whenever
the Chairman of the Board is unable to attend a meeting of the Board,
or
in the event of a vacancy in the office of the Secretary of Finance,
the
President of the Corporation shall act as the chairman.chanrobles virtuallaw libraryred
"The
presence of three (3) members shall constitute a quorum, and all
decisions
shall require a vote of a majority of the members present, there being
a quorum.chanrobles virtuallaw libraryred
"The
members of the Board of Directors from the private sector, except the
President
shall receive a per diem for every board meeting attended, the amount
of
which shall be Five hundred pesos (P500.00) per meeting but not to
exceed
the sum of Two thousand pesos (P2,000.00) for every single month.
"The
Board of Directors shall have the authority:
"1.To
prepare and issue rules and regulations as it considers necessary for
the
effective discharge of its responsibilities; chanrobles virtuallaw libraryred"2.To
direct the management, operations and administration of the Corporation;
"3.To
appoint, establish the rank, fix the remuneration and remove any
officer
or employee of the Corporation for cause; subject to the Civil Service
and pertinent compensation laws; and
"4.To
authorize such expenditures by the corporation as are in the interest
of
the effective administration and operation of the Corporation." chanrobles virtuallaw libraryred
Sec.
2. Section 2-A of the same Act
is hereby amended to read as follows:
"Sec.
2-A. The President of the Corporation
shall be the Chief Executive thereof and his salary shall be fixed by
the
President of the Philippines at a sum commensurate to the importance
and
responsibility attached to the position. The sum total of the salary of
the President and the allowances and other emoluments which the Board
of
Directors may grant him shall be ceiling for fixing the salary
allowances
and other emoluments of all other personnel in the Corporation.chanrobles virtuallaw libraryred"The
powers and duties of the president of the Corporation are: "(a) To
prepare the agenda for the meeting of the Board and to submit for the
consideration
of the Board the policies and measures which he believes to be
necessary
to carry out the purposes and provisions of this Act; chanrobles virtuallaw libraryred"(b) To
execute and administer the policies and measures approved by the
Board;
"(c) To
direct and supervise the operations and internal administration of the
Corporation in accordance with the policies established by the Board.
The
President may delegate certain of his administrative responsibilities
to
other officers of the Corporation, subject to the rules and regulations
of the Board;
"(d) To
represent the Corporation, upon prior authority of the Board, in all
dealings
with other offices, agencies and instrumentalities of the Government
and
with all other persons or entities, public or private, whether
domestic,
foreign or international;
"(e) To
authorize, with his signature, upon prior authority of the Board,
contracts
entered into by the Corporation, notes and securities issued by the
Corporation,
and the annual reports, balance sheets, profits and loss statements,
correspondence
and other documents of the Corporation. The signature of the President
may be in facsimile wherever appropriate;
"(f) To
represent the corporation, either personally or through counsel, in all
legal proceedings or actions;
"(g) To
delegate, with the prior approval of the Board of Directors, his power
to represent the Corporation, as provided in subsections (d) and (f) of
this Section, to other officers of the Corporation; and chanrobles virtuallaw libraryred
"(h) To
exercise such other powers as may be vested in him by the Board.
"The
President shall be assisted by a Vice-President and other officials
whose
appointment and removal for cause shall be approved and whose salary
shall
be fixed by the Board of Directors upon recommendation of the President
of the Corporation. During the absence or temporary incapacity of the
President,
or in case of vacancy or permanent incapacity and pending the
appointment
of a new President of the Corporation by the President of the
Philippines,
the Vice-President shall act as President and discharge the duties and
responsibilities thereof."
Sec.
3. Section 3, subsections (b),
(c), (f) and (g) is hereby amended to read as follows:
"(b) The
term 'Bank' and 'Banking Institution' shall be synonymous and
interchangeable
and shall include banks, commercial banks, savings bank, mortgage
banks,
rural banks, development banks, cooperative banks, stock savings and
loan
associations and branches and agencies in the Philippines of foreign
banks
and all other corporations authorized to perform banking functions in
the
Philippines."chanrobles virtuallaw libraryred"(c) The
term 'receiver' includes a receiver, commission, person or other agency
charged by law with the duty to take charge of the assets and
liabilities
of a bank which has been forbidden from doing business in the
Philippines,
as well as the duty to gather, preserve and administer such assets and
liabilities for the benefit of the depositors and creditors of said
bank,
and to continue into liquidation whenever authorized under this Act
other
laws, and to dispose of the assets and to wind up the affairs of such
bank."
"(f) The
term 'deposit' means the unpaid balance of money or its equivalent
received
by a bank in the usual course of business and for which it has given or
its obliged to give credit to a commercial, checking, savings, time or
thrift account or which is evidenced by passbook check, and/or
certificate
of deposit, printed or issued in accordance with Central Bank Rules and
Regulations and other applicable laws, together with such other
obligations
of a bank, which, consistent with banking usage and practices, the
Board
of Directors shall determine and prescribe by regulations to be deposit
liabilities of the Bank: Provided, That any obligation of a bank which
is payable at the office of the bank located outside of the Philippines
shall no be a deposit for any of the purposes of this Act or included
as
part of the total deposits or in insured deposit: Provided, further,
That,
subject to the approval of the Board of Directors, any insured bank
which
is incorporated under the laws of the Philippines which maintains a
branch
outside the Philippines may elect to include for insurance its deposit
obligations payable only at such branch."chanrobles virtuallaw libraryred
"(g) The
term 'insured deposit' means the net amount due to any depositor for
deposits
in an insured bank (after deducting offsets) less any part thereof
which
is in excess of One hundred thousand pesos (P1,000.00). Such net amount
shall be determined according to such regulations as the Board of
Directors
may prescribe and in determining such amount due to any depositor,
there
shall be added together all deposits in the bank maintained in the same
capacity and the same right for his benefit either in his own name or
in
the name of others: Provided, That the provisions of any law to the
contrary
notwithstanding no owner/holder of any negotiable certificate of
deposit
shall be recognized as a depositor entitled to the rights provided in
this
Act unless his name is registered as owner/holder thereof in the books
of the issuing banks."
Sec.
4. Section 6, Subsections (a)
and (h), of the same Act is hereby amended to read as follows:chanroblesvirtualawlibrary
"(a) The
assessment rate shall be determined by the Board of Directors:
Provided,
That the assessment rate shall not exceed one fifth (1/5) of one per
centum
(1%) per annum. The semi-annual assessment for each insured bank shall
be in the amount of the product of one half (½) the assessment
rate
multiplied by the assessment based but in no case shall it be less than
the amount of Two hundred fifty (P250.00). The assessment base shall be
the amount of the liability of the bank for deposits, according to the
definition of the term 'deposit' in and pursuant to subsection (f) of
Section
3 without any deduction for indebtedness of depositors.chanrobles virtual law library chanrobles virtuallaw libraryred"The
semi-annual assessment base for one semi-annual period shall be the
average
of the assessment base of the bank as of the close of business on March
thirty-one and June thirty and the semi-annual assessment base for the
other-semi-annual period shall be the average of the assessment base of
the bank as for the close of business on September thirty and December
thirty-one: Provided, That when any of said days in a non-business day
or legal holiday, either national or provincial, the preceding business
day shall be used. The certified statements required to be filed with
the
Corporation under subsections (b) and (c) of this Section shall be in
such
form and set forth such supporting information as the Board of
Directors
shall prescribed. The assessment payments required from the insured
banks
under subsections (b) and (c) of this Section shall be made in such
manner
and at such time or times as the Board of Director shall prescribe,
provided
the time or times so prescribed shall not be later than sixty (60) days
after filing the certified statement setting forth the amount of
assessment."
"(h) Should
any insured bank fail or refused to pay any assessment required to be
paid
by such bank under any provision of this Act, and should the bank not
correct
such failure or refusal within thirty (30) days after written notice
has
been given by the Corporation to an officer of the bank citing this
subsection,
and stating that the bank has failed or refused to pay as required by
the
law the insured status of such bank shall be determined by the Board of
Directors: Provided, that, after the lapse of thirty (30) days from the
date when the written notice has been sent by registered mail, whether
or not such notice has been actually received by the bank, the
Corporation
shall terminate the insured status of the bank. The bank shall give
written
notice of such termination to each of the depositors at his last
address
of record on the books of the bank and the Corporation shall publish
the
notice of the termination of insured status of the bank. After the
termination
of the insured status, the insured deposit of each depositor in the
bank
on the date of such termination, less all subsequent withdrawals from
the
deposits of such depositor, shall continue to be insured for a period
of
ninety (90) days. No additions to any such deposits and no new deposits
in such bank, after the date of such termination shall be insured by
the
Corporation, and the bank shall not advertise or hold itself out as
having
insured deposits unless the same connection shall also state with equal
prominence that such additions to deposits and new deposits made be
closed
on account of insolvency within the period of ninety (90) days, the
Corporation
shall have the same powers and rights with respect to such bank as in
the
case of an insured bank."chanrobles virtuallaw libraryred
Sec.
5. Section 7 of the same Act
is hereby amended to read as follows:
"Sec.
7 (a). Whenever upon examination
by the Corporation into the condition of any insured bank, it shall be
disclosed that an insured bank or its directors or agents have
committed,
are committing or about to commit unsafe or unsound practices in
conducting
the business of the bank, or have violated, are violating or about to
violate
any provisions of any law or regulation to which the insured bank is
subject,
the Board of Directors shall submit the report of the examination to
the
monetary board to secure corrective action thereon. If no such
corrective
action is taken by the Monetary Board within sixty (60) days from the
submission
of the report, the Board of Directors shall, motu proprio, institute
corrective
action which it deems necessary. The Board of Directors may issue a
cease
and desist order and require the bank or its directors or agents
concerned
to correct the practices or violations within sixty (60) days. However,
If the practice or violation is likely to cause insolvency or
substantial
dissipation of assets or earnings of the bank, or is likely to
seriously
weaken the condition of the bank or otherwise seriously prejudice the
interests
of its depositors and the Corporation, the period to take corrective
action
shall not be more than fifteen (15) days. The order may also include
the
imposition of fines provided in Section 16 (f) hereof. The Board of
Directors
shall duly inform the Monetary Board of the Central Bank of the
Philippines
of action it has taken with respect to such practices or violations. If
the bank violates the cease and desist order or fails to correct the
practices
or violations as required within the period prescribed herein, the
corporation
shall terminate the insured status of the bank the consequences of the
termination of insured status of the bank on the Corporation, the bank
and the depositor and their deposits shall be governed by Section 6 (h)
hereof.chanrobles virtual law library chanrobles virtuallaw libraryred"(b) The
actions and proceedings provided in the proceeding subsection may be
undertaken
by the Corporation if, in its opinion, an insured bank or its directors
or agents have violated, are violating or about to violate any
provisions
of this Act or any order, rule or instruction issued by the Corporation
or any written condition imposed by the Corporation in connection with
any transaction with or grant by the Corporation." chanrobles virtuallaw libraryred
Sec.
6. Section 8 is hereby amended
by adding a new paragraph to be designated as paragraph twelfth.
Paragraph
eighth is likewise amended. Paragraphs eighth and twelfth shall read as
follows:
"Eight
— To conduct independent examinations of and to required information
and
reports from bank, as provided in this Act, whenever deemed necessary
by
the Board of Directors: Provided, That to the extent practicable, said
examinations shall maximize the efficient use of available relevant
reports,
information and findings, specifically from the Central Bank. The Board
of Directors shall prescribe such regulations as may be necessary to
ensure
the special nature and reasonable exercise of this power." chanrobles virtuallaw libraryred"Twelfth
— To compromise, condone or release, in whole or in part, any of claim
or settled liability to the Corporation, regardless of the amount
involved,
under such terms and conditions as may be imposed by the Board of
Directors
to protect the interest of Corporation."
Sec.
7. Section 9, subsection (b)
and (d) of the same Act is hereby amended to read as follows:chanroblesvirtualawlibrary
"(b) The
Board of Directors shall appoint examiners who shall have power, on
behalf
of the Corporation to examine any insured bank. Each such examiner
shall
have the power to make a through examination of all the affairs of the
bank and in doing so, he shall have the power to administer oaths, to
examine
and take and preserve the testimony of any the officers and agents
thereof,
and to compel the presentation of books, documents, papers or records
necessary
in his judgment to ascertain the facts relative to the condition of the
bank: and shall make a full and detailed report of the condition of the
bank to the Corporation. The Board of Directors in like manner shall
appoint
claim agents who shall have the power to investigate and examine all
claims
for insured deposits and transferred deposits. Each claim agent shall
have
the power to administer oaths and examine under oath and take and
preserve
testimony of any person relating to such claim." chanrobles virtuallaw libraryred"(d) The
Corporation shall have access to reports of examination made by, and
reports
of condition made to the Central Bank of the Philippines or its
appropriate
supervising departments, and the Central Bank of the Philippines shall
also have access to reports of examination made by, and reports of
condition
made to the Corporation: Provided, That the provisions of any law to
the
contrary notwithstanding, the Corporation shall likewise have access to
reports, findings and any other information derived from any special or
general examination of inquiry conducted by the Central Bank in respect
to bank fraud or serious irregularity in an insured bank: Provided,
that,
the Corporation shall use such reports and findings under similar terms
and conditions prescribed by applicable laws on the Central Bank."
Sec.
8. Section 9, subsection (e)
of the same Act is hereby amended to read as follows:
"(e) Personnel
of the Corporation are hereby prohibited from: "(1) being
an officer, director, consultant, employee or stockholder, directly or
indirectly, of any bank or banking institution except as otherwise
provided
in this Act; chanrobles virtuallaw libraryred"(2) receiving
any gift or thing of value from any officer, director or employee
thereof: chanrobles virtuallaw libraryred
"(3) revealing
in any manner, except under order of the court or authorized herein in
such condition or business of any such institution. The prohibition
shall
not be held to apply to the giving of information to the Board of
Directors
or to any person authorized by neither of them in writing to receive
such
information.
"Notwithstanding
the provisions of this Section and Section 2, members of the Board of
Directors
and other personnel of the Corporation may become directors and
officers
of any bank and banking institution and of any entity related to such
institution
in connection with financial assistance extended by the Corporation to
such institution and when in the opinion of the Board it is appropriate
to make such a designation to protect the interest of the
Corporation.chanrobles virtual law library chanrobles virtuallaw libraryred"Borrowing
from any bank or banking institution by examiners and other personnel
of
the examination departments of the corporation shall be prohibited only
with respect to the particular institution in which they are assigned,
or are conducting an examination. Personnel of other departments,
offices
or units of the Corporation shall likewise be prohibited from borrowing
from any bank or banking institution during the period of time that a
transaction
of such institution with the corporation is being evaluated, processed
or acted upon by such personnel: Provided, however, that the Board may,
at its discretion, indicate the position levels or functional groups to
which the prohibition is applicable.chanrobles virtual law library
"Borrowing
by all full-time personnel of the corporation from any bank or banking
institution shall be secured and disclosed to the Board, and shall be
subject
to such further rules and regulations as the Board may prescribe." chanrobles virtuallaw libraryred
Sec.
9. The same Act is hereby amended
by adding new sections after Section 9 thereof, to read as follows:chanroblesvirtualawlibrary
"Sec.
9-A. The provisions of other
laws, general or special, to the contrary notwithstanding, whenever it
shall be appropriate for the Monetary Board of the Central Bank of the
Philippines to appoint a receiver of any banking institution pursuant
to
existing laws, the Monetary Board shall give price notice and appoint
the
Corporation as receiver.chanrobles virtual law library chanrobles virtuallaw libraryred"In
addition to the powers of a receiver pursuant to existing laws, the
Corporation
is empowered to bring suits to enforce liabilities to or recoveries of
the bank. Further, the Corporation may, upon its own responsibility, in
the discretion of its Board of Directors and upon justifiable reasons,
appoint and hire persons or entities of recognized competence in
banking
or finance as its deputies and assistants.chanrobles virtual law library
"The
Corporation, its directors, officers and employees shall not be subject
to any action, claim or demand for or in connection with any act done
or
omitted to be done by them in good faith in the exercise of their
functions
or in connection with the exercise of the powers under this Section and
Sections 9-b, 9-c and 12(c) of this Act.
"Sec.
9-B. Before any distribution
of the assets of the closed bank in accordance with the preferences
established
by law, the Corporation shall periodically charge against said assets
such
reasonable receivership expenses and subject to approval by the proper
court, such reasonable liquidation expenses, it has incurred as part of
the costs of receivership/liquidation proceedings and collect payment
therefor
from available assets.
"Sec.
9-C. Cases not provided in Section
9-A above including the filing of cases to modify, set aside or
restrain
any action of the Corporation therein shall be governed by Section 29
of
R. A. 265, as amended."chanrobles virtuallaw libraryred
Sec.
10. Section 10, subsections (a-1,)
(c) and (d) is hereby amended to read as follows:
"(a-1) The
permanent insurance fund hereinabove created is hereby increased to
Three
billion pesos (P3,000,000,000.00) and for this purpose, such sum as may
be necessary is hereby appropriated from the General Fund: Provided,
That
the maximum amount of the insured deposit of any depositor is hereby
increased
to One hundred thousand pesos (P100,000.00)." chanrobles virtuallaw libraryred"(c) Whenever
an insured bank shall have been closed on account of insolvency payment
of the insured deposits in such shall be made by the Corporation as
soon
as possible either (1) by cash or (2) by making available to each
depositor
a transferred deposit in another insured bank in an amount equal to the
insured deposit of such depositor: Provided, however, That the
corporation,
in its discretion may required proof of claims to be filed before
paying
the insured deposits, and that it any case where the Corporation is not
satisfied as to the viability of a claim for an insured deposit, it may
require the final determination of a court of competent jurisdiction
before
paying such claim: Provided, further, That failure to settle the claim
within six (6) months from the date of filing of the claim for insured
deposit shall, upon conviction, subject the directors, officers or
employees
of the corporation responsible for the delay, to imprisonment from six
(6) months to one (1) year: Provided, however, That the period shall
not
apply if the validity of the claim requires the resolution of issues of
facts and or law by another office, body or agency including the case
mentioned
in the first proviso or by the Corporation together with such other
office,
body or agency.
"(d) The
Corporation, upon payment of any depositor as provided for in
subsection
(c) of this Section, shall be subrogated to all rights of the depositor
against the closed bank to the extent of such payment. Such subrogation
shall include the right on the part of the Corporation to receive the
same
dividends and payments from the proceeds of the assets of such closed
bank
and recoveries on account of stockholders liability as would have been
payable to the depositor on a claim for the insured deposits but, such
depositor shall retain his claim for any uninsured portion of his
deposit.
All payments by the corporation of insured deposits in closed banks
partake
of the nature of public funds, and as such, must be considered a
preferred
credit similar to taxes due to the National Government in the order of
preference under Article 2244 of the New Civil Code: Provided, further,
That this preference shall be likewise effective upon liquidation
proceedings
already commenced and pending as of the approval of this Act, where no
distribution of assets has been made."
Sec.
11. Section 11, subsection (d)
of the same Act is hereby amended to read as follows:
"(d) If,
after the Corporation have given at least three (3) months notice to
the
depositor by mailing a copy thereof to his last known address appearing
on the records of the closed bank, the depositor in the closed bank
shall
fail to file a claim for his insured deposit from the Corporation
within
eighteen (18) months after the Monetary Board of the Central Bank of
the
Philippines shall have ordered the closure of said bank, pursuant to
Section
29 of R.A. 265 as amended, all rights of the depositor against the
Corporation
with respect to the insured deposit shall be barred, and all rights of
the depositor against the closed bank and its shareholders or the
receivership
estate to which the Corporation may have become subrogated shall
thereupon
revert to the depositor: Provided, That the claimant shall enforce his
duly-filed claim against the Corporation within one (1) year after the
eighteen-month period heretofore mentioned. Thereafter, the Corporation
shall be discharged from any liability on the insured deposit without
prejudice
to the rights of the claimants against the closed bank and its
shareholders
or the receivership estate: Provided, further, That when practicable,
the
Board of Directors may adopt other adequate means of notice to the
depositor."
Sec.
12. Section 12, subsection (c)
of the same Act is hereby amended to read as follows:
"(c) When
the Corporation has determined that an insured bank is in danger of
closing,
in order to prevent such closing, the Corporation, in the discretion of
its Board of Directors, is authorized to make loans to, or purchase the
assets of, or assume liabilities of, or make deposits in, such insured
bank, upon such terms and conditions as the Board of Directors may
prescribe,
when in the opinion of the Board of Directors, the continued operation
of such bank in essential to provide adequate banking service in the
community
or maintain financial stability in the economy.chanrobles virtuallaw libraryredchanrobles virtuallaw libraryred"The
authority of the Corporation under the foregoing paragraph to extend
financial
assistance to, assume liabilities of, purchase the assets of an insured
bank may also be exercised in the case of a closed insured bank if the
Corporation finds that the resumption of operations of such bank is
vital
to the interest of the community or, a severe financial climate exists
which threatens the stability of a number of banks possessing
significant
resources: Provided, That the reopening and resumption of operations of
the closed bank shall be subject to the prior approval of the Monetary
Board.chanrobles virtual law library
"The
Corporation may provide any Corporation acquiring control of, merging
or
consolidating with or acquiring the assets of an insured bank in danger
of closing in order to prevent such closing or of a closed insured bank
in order to restore to normal operations, with such financial
assistance
as it could provide an insured bank under this subsection: Provided,
That,
within sixty (60) days from a date of assistance the Corporation shall
submit a report thereof to the Monetary Board.
"In
all case, however, the Corporation, prior to the exercise of this
power,
shall determine that actual payoff and liquidation thereof will be more
expensive than the exercise of this power. Finally, the Corporation may
not use its authority under this subsection to purchase the voting or
common
stock of an insured bank but it can enter into and enforce agreements
that
it determines to be necessary to protect its financial interests."chanrobles virtuallaw libraryred
Sec.
13. Section 13 of the same Act
is hereby amended to read as follows:
"The
Corporation is authorized to borrow from the Central Bank of the
Philippines
and the Central Bank is authorized to lend the Corporation on such
terms
as may be agreed upon by the Corporation and the Central Bank, such
funds
as in the judgment of the Board of Directors of the Corporation are
from
time to time required for insurance purposes including those provided
for
in Section 12(c) of this Act: Provided, That any such loan as may be
granted
by the Central Bank shall be consistent with monetary policy; and
Provided,
further, That the rate of interest thereon shall be fixed by the
Monetary
Board but shall not exceed the treasury bill rate.chanrobles virtual law library chanrobles virtuallaw libraryred"When
in the judgment to the board of Directors the funds of the Corporation
are not sufficient to provide for an emergency or urgent need to attain
the purposes of this Act, the Corporation is likewise authorized to
borrow
money, obtain loans or arrange credit lines or other credit
accommodations
from any bank designated as depository or fiscal agent of the
Philippine
Government: Provided, That such loan shall be of short term duration."
Sec.
14. Section 16, subsections (a),
(d), (e) and (f) of the same Act is hereby amended to read as
follows:
"(a) Every
insured bank shall display at each place of business maintained by it a
sign or signs, and shall include a statement to the effect that its
deposits
are insured by the Corporation in all its advertisements: Provided,
That
the Board of Directors may exempt from this requirement advertisements
which do not relate to deposits or when it is impractical to include
such
statement therein. The Board of Directors shall prescribe by
regulations
the forms of such signs and the manner of use. For each day an insured
bank continues to violate any provisions of this subsection or any
lawful
provisions of said regulations, it shall be subject to a penalty of not
more than One thousand pesos (P1,000) which the Corporation may recover
for its use: Provided, however, That the penalty of imprisonment for
not
more than one (1) year or a fine of not exceeding Twenty thousand pesos
(P20,000.00) or both, in the discretion of the insured under the
provisions
of this Act which shall in any manner, advertise or hold itself out as
having insured status for the purpose of making it appear that its
deposits
are insured with the Corporation." chanrobles virtuallaw libraryred"(d) The
Corporation may require an insured bank to provide protection and
indemnity
against burglary, defalcation, losses arising from discharge of duties
by, or particular acts of defaults of its directors, officers, or
employees,
and other similar insurable losses. The Board of Directors in
consultation
with the Central Bank, shall determine the bonding requirement as it
referred
to directors, officers and employers of the insured bank as well as the
form and amount of the bond. Whenever any insured bank refuses to
comply
with any such requirement the Corporation may contract for such
protection
and add the cost thereof to the assessment otherwise payable by such
bank."
"(e) Any
assessment payable by an insured bank under this Act shall be subject
to
payment of interest computed from the date such assessment became due
and
payable and at the legal rate for loans as prescribed by law or
appropriate
authority and in case of willful failure or refusal to pay such
assessment
and interest thereon, there shall be added a penalty equivalent to
twice
the amount of interest payable as computed herein for each day such
violations
continue, which the interest and penalty the Corporation may recover
for
its use: Provided, That the penalty shall not be applicable under the
circumstances
stated in the provisions of subsection (b) of this Section."chanrobles virtuallaw libraryred
"(f) The
Board of Directors is hereby authorized at its discretion to impose
upon
insured banks, their directors, and/or officers, for any willful delay
in the submission of reports as required by law, rules and regulations;
any refusal to permit examination in the affairs of the institution;
any
willful making of a false statement to the Corporation; any willful
failure
or refusal to comply with, or violation of any provision of this Act,
or
any order, instruction, or regulations issued by the Corporation or any
commission of irregularities, and/or conducting business in an unsafe
or
unsound manner as may be determined by the Board of Directors, a fine
not
exceeding One thousand pesos (P1,000.00) a day for each type of
violation,
the imposition of which shall be final and executory until reversed,
modified
or lifted by the Board of Directors."
Sec.
15. Transitory Provisions. —
(a) Authority to Reorganize. — In view of the new powers and functions
herein provided, a reorganization of the Corporation is hereby
authorized
including adopting a new staffing pattern for effective and efficient
exercise
and performance of such powers and function.
chanrobles virtuallaw libraryred
The
formulation of the program of reorganization shall be completed as soon
as possible and the implementation of such program within eighteen (18)
months after approval of this Act.chanrobles virtual law library
(b) Implementing
Details. — Organization and Staffing of the Corporation. — Upon
effectivity
of this Act, the Secretary of Finance, the incumbent President of the
Corporation
and the Governor of the Central Bank shall constitute the Chairman and
members of the Board provided hereof. The President is hereby
authorized
subject to the approval of the Board of Directors as appropriate, to
issue
such orders, rules and regulations as may be necessary to implement the
reorganization authorized under the preceding section which will
involve
the determination and adoption of (1) a new internal structure of the
Corporation
as reorganized down to the divisional, section or lowest reorganization
levels; (2) a new staffing pattern including appropriate salary
rates. chanrobles virtuallaw libraryred
The
provisions of any law to the contrary notwithstanding, in the
implementation
of the reorganization herein, and in appointments to appropriate
positions
in the new staffing pattern of the Corporation, no preferential or
priority
rights shall be given to or enjoyed by any officer or personnel of the
Corporation for appointment to any position in the new staffing pattern
not shall any officer or personnel be considered as having prior or
vested
rights with respect to retention in the Corporation or in any position
as may have been created in its new staffing pattern, even if he should
be the incumbent of a similar position therein.
Pending
the completion of the personnel actions above provided and the issuance
of the appropriate implementing orders, all incumbent shall continue to
exercise their mutual functions, duties and responsibilities.
Sec.
16. Any amount appropriated under
the General Appropriations Act or any other appropriation or
supplemental
appropriation act shall be regularly released in accordance with the
allotment
system established under existing law.cralaw:red
Sec.
17. All acts or parts of act,
presidential decrees, executive orders, administrative orders or parts
thereof which are inconsistent with the provisions of this Act are
hereby
repealed.cralaw:red
Sec.
18. This Act shall take effect
upon its approval. chanrobles virtuallaw libraryred
Approved:
April 13, 1992
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