REPUBLIC ACT NO. 4887 - AN ACT TO
AMEND SECTIONS FOUR, FIVE, SIX, SEVEN AND TEN OF REPUBLIC ACT NUMBERED
FOUR THOUSAND NINETY THREE (RE: CHARTER OF PRIVATE DEVELOPMENT BANK)
Section 1. Section Four of Republic Act Numbered Four
thousand ninety three is hereby amended to read as follows:
"Sec. 4. A private development bank shall be
organized in the form of a stock corporation and its paid-up capital
shall not be less than four million pesos for Class A, two million
pesos for Class B, and one million pesos for Class C: provided, that at
least sixty per cent of the capital stock subscribed by the private
sector shall be owned and held by citizens of the Philippines:
provided, further, that if said subscription of private shareholders to
the initial capitalization of a private development bank cannot be
secured or is not available, the Development Bank of the Philippines on
representation of the said private shareholders and with the approval
of its Board of Governors shall, within thirty days from date of
approval by the Board of Governors, and after compliance by the private
stockholders with the conditions of said approval, subscribe to the
capital stock of such development banks, which shall be paid in full at
the time of subscription out of the trust fund provided in Section three, paragraph three, of Republic Act Numbered Two thousand
eighty-one, in an amount equal to the difference between the required
paid-up capital and to the fully paid subscribed capital of the private
stockholders but not exceeding the latter: provided, furthermore, that
the Board of Governors shall act on the representation made by the
private shareholders within thirty days from the date it is filed:
provided, still further, that such shares of stock subscribed by the
bank shall be preferred shares entitled to cumulative dividends at the
rate of one per cent during the first five years, two per cent during
the following five years, and three per cent thereafter shall be
preferred as against common and other preferred stockholders in the
distribution of assets in the event of liquidation, and shall be
entitled to voting privileges: provided, finally, that such preferred
shares of the bank may be sold at any time at par to private
individuals who are citizens of the Philippines, and in the sale
thereof, the qualified registered stockholders shall have the right of
preemption within one year from the date of offer in proportion to
their respective holdings, but in the absence of such buyers,
preference shall be given to residents of the province or city where
the development bank is located. All members of the board of directors
of the private development bank shall be citizens of the
Philippines.
"Sec. 4-A. On representation of the private
stockholders of the private development banks, the Development Bank of
the Philippines shall, after approval of its Board of Governors and
compliance by the private shareholders of the conditions of said
approval, subscribe to the additional capital stock of such development
banks which may be paid on installments out of the trust fund provided
in paragraph three, section three, of Republic Act Numbered 2081 in
amounts of not less than one hundred thousand pesos each installment or
in an amount equal to the fully paid additional capital of the private
stockholders but not exceeding the latter: provided, that such shares
of stock subscribed by the Development Bank of the Philippines shall
have the same rights, powers and privileges enjoyed by the shares of
stock of the bank mentioned in Section four hereof".
Sec. 2. Section Five of R. A. No. 4093 is hereby
amended to read as follows:
"Sec. 5. Seventy-five per centum of the loanable
funds of the private development bank shall be invested in medium and
long-term loans for economic development purposes and in no case shall
the Bank invest more than twenty-five per centum of the loanable funds
in short term loans for miscellaneous purposes: provided, however, that
the twenty-five per cent (25%) of the loanable funds for short term
loans may be loaned on securities other than real estate mortgage."
"Sec. 5-A. The provisions of Section thirty-one
paragraph B (2) of Republic Act Numbered Three hundred thirty-seven to
the contrary notwithstanding, equipment loans granted by private
development banks need not be secured by the chattels or equipment
acquired out of the proceeds of the loan if the borrower offers to
constitute a lien or mortgage on other real estate properties seventy
per cent (70%) of the appraised value of which equals or exceeds the
loan granted."
Sec. 3. Section Six of R. A. No. 4093 is hereby
amended to read as follows:
"Sec. 6. For the purpose of attaining the objectives
of this Act and the policy of Congress as provided for in Section two
of this Act, the sum of ten million pesos is hereby appropriated yearly
from the net profit of the Central Bank paid into the general fund of
the government under Section Forty-one, Paragraph (d) of the Central
Bank Act, which sum shall constitute a revolving fund to be made
available to the Development Bank of the Philippines which shall be
used, together with the funds already provided under paragraph two of
Section three of Republic Act Numbered Two thousand eighty-one, for the
following purposes:
"(a) To pay for its subscription to preferred shares
of stock in said private development banks in the manner and subject to
the terms and conditions prescribed in Section four hereof;
"(b) To rediscount promissory notes and other credit
instruments held by the private development bank under the following
conditions and limitations:
"(1) It shall charge such rediscount or interest
rates as it may be determine taking into account that the main
objective of the private development Bank is to engage in medium and
long term loans for economic development. The determination of such
rediscount or interest rates acceptable to the bank for the purpose of
this provision shall be made by the said bank upon or immediately after
the commencement of operations of a private development bank; and
"(2) Funds so acquired shall be used only to finance
the establishment and operation of projects within the development
program of the National Economic Council or along such projects and
activities as the National Economic Council may, from time to time,
approve."
Sec. 4. Section Seven of R. A. No. 4093 is hereby
amended to read as follows:
"Sec. 7. Any private development bank may, with the
approval of the Monetary Board:
"(a) Accept savings and time deposits;
"(b) Act as correspondent for other financial
institution and as collection agent;
"(c) Rediscount paper with the Central Bank,
Philippine National Bank or other Banks and their branches or agencies.
The Central Bank shall specify the nature of papers deemed acceptable
for rediscount as well as the rediscount rate to be charged by any of
these institutions."
Sec. 5. Section Ten of R. A. No. 4093 is hereby
amended to read as follows:
"Sec. 10. All private development banks, with net
assets not exceeding ten million pesos for Class C, twenty million
pesos for Class B, and thirty million pesos for Class A banks,
excluding the counterpart capital subscribed and paid-in by the
Development Bank of the Philippines, shall be totally exempt from
payment of all taxes, charges and fees of whatever nature and
description except from compensating tax and tariff duties. For this
purpose the net assets of all private development banks shall be
determined as of December thirty-one (31) of each year and if such are
in excess of the limits prescribed by this section they shall be liable
for payment of taxes for the following calendar year; said taxes to be
assessed, levied and collected in a proportionate amount as the excess
shall bear in relation to the total net assets."
Sec. 6. This Act shall take effect upon its
approval.
Approved: June 17, 1967
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