REPUBLIC ACT NO. 6037 - AN
ACT TO AMEND CERTAIN SECTIONS OF REPUBLIC ACT NUMBERED THREE THOUSAND
FIVE HUNDRED NINETY ONE ENTITLED "AN ACT ESTABLISHING THE PHILIPPINE
DEPOSIT INSURANCE CORPORATION, DEFINING ITS POWERS AND DUTIES AND FOR
OTHER PURPOSES"
Section 1. Sec. 2 of Republic Act Numbered Three thousand
five hundred ninety one is hereby amended to read as follows:
"Sec. 2. The powers and functions of the Corporation
shall be vested in a Board of Directors consisting of three (3) members
one of whom shall be the Governor of the Central Bank of the
Philippines and two of whom shall be citizens of the Republic of the
Philippines to be appointed by the President of the Philippines with
the consent of the Commission on Appointments. One of the appointive
members shall be the Chairman of the Board of Directors of the
Corporation who shall be appointed on full time basis for a term of six
(6) years at an annual compensation which shall be fixed by the
President of the Philippines. The other appointive member, who shall be
appointed for a term of four (4) years and the Governor of the Central
Bank shall each receive a per diem of not exceeding fifty pesos
(P50.00) for each day of meeting actually attended by them but in no
case shall each of them receive more than five hundred pesos (P500.00)
a month.n the event of vacancy in the office of the Governor of the
Central Bank of the Philippines, and pending the appointment of his
successor or during the absence of the Governor, the Acting Governor of
the Central Bank of the Philippines shall act as member of the Board of
Directors.n the event of a vacancy in the Office of the Chairman of the
Board of Directors and pending the appointment of his successor, the
Governor of the Central Bank of the Philippines shall act as Chairman.
The members of the Board of Directors shall be ineligible during the
time they are in office and for a period of two years thereafter to
hold any office, position or employment in any insured bank, except
that this restriction shall not apply to any member who has served the
full term for which he was appointed. No member of the Board of
Directors shall be an officer or director of any insured bank; and
before entering upon his duties as member of the Board of Directors, he
shall certify under oath that he has complied with this requirement and
such certification shall be filed with the Secretary of the Board of
Directors. Any vacancy in the Board created by the death, resignation,
or removal of an appointive member shall be filled by the appointment
of new member to complete the unexpired period of the term of the
member concerned.
"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.
"2. To direct the management, operations and
administration of the Corporation;
"3. To appoint, fix the remuneration and remove any
officer or employee of the Corporation for cause: provided, however,
that officers exercising discretionary powers shall not be subject to
the Civil Service Law; and
"4. To authorize such expenditures by the Corporation
as are in the interest of the effective administration and operation of
the Corporation."
Sec. 3. Sec. 4 of the same Act is hereby
amended as follows:
"Sec. 4. The deposit liabilities of any bank or
banking institution, which is engaged in the business of receiving
deposits as herein defined on the effective date of this Act, or which
thereafter may engage in the business of receiving deposits, shall be
insured with the corporation."
Sec. 4. Sec. 5 of the same Act is hereby
repealed.
Sec. 5. Sec. 8 of the same Act is hereby
amended to read as follows:
"Sec. 8. The Corporation as a corporate body shall
have the powers:
"First — To adopt and use a corporate seal;
"Second — To have succession until dissolved by an Act of Congress;
"Third — To make contracts;
"Fourth — To sue and be sued, complain and defend, in any court of law
in the Philippines. All suits of a civil nature to which the
Corporation shall be a part shall be deemed to arise under the laws of
the Philippines. No attachment or execution shall be issued against the
Corporation or its property before final judgment in any suit, action
or proceeding in any court. The Board of Directors shall designate an
agent upon whom service of process may be made in any province or city
or jurisdiction in which the insured bank is located;
"Fifth — To appoint by its Board of Directors such officers and
employees as are not otherwise provided for in this Act, to define
their duties, fix their compensation, require bonds of them and fix
penalty thereof and to dismiss such officers and employees for cause;
"Sixth — To prescribe, by its Board of Directors, by-laws not
inconsistent with law, regulating the manner in which its general
business may be conducted, and the privileges granted to it by law may
be exercised and enjoyed;
"Seventh — To exercise, by its Board of Directors, or duly authorized
officers or agents, all powers specifically granted by the provisions
of this Act, and such incidental powers as shall be necessary to carry
on the powers so granted;
"Eight — To make examinations of and to require information and reports
from banks, as provided in this Act: provided, that any examination
shall be made simultaneously with the examination by the Departments of
the Central Bank conducting examinations on banks;
"Ninth — To act as receiver; and
"Tenth — To prescribe by its Board of Directors such rules and
regulations as it may deem necessary to carry out the provisions of
this Act."
Sec. 6. Section 12 of the same Act is hereby
amended to read as follows:
"Sec. 12. (a) Money of the Corporation not otherwise
employed shall be invested in obligations of the Republic of the
Philippines or in obligations guaranteed as to principal and interest
by the Republic of the Philippines.
"(b) The banking or checking accounts of the
Corporation shall be kept with the Central Bank of the Philippines,
with the Philippine National Bank, or with any other bank designated as
depository or fiscal agent of the Philippine Government.
"(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 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 is essential to provided
adequate banking service in the community, Such loans and deposits may
be in subordination to the rights of depositors and other creditors."
Sec. 7. Section 13 of the same Act is hereby
amended to read as follows:
"Sec. 13. The Corporation is authorized to borrow
from the Central Bank of the Philippines and the Central Bank is
authorized and directed to loan the Corporation on such terms as may be
fixed 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) not exceeding in the aggregate of one hundred million
pesos at any one time: provided, that the rate of interest to be
charged in connection with any loan made pursuant to this Section shall
not be less than the current average rate on outstanding marketable and
non-marketable obligations of the Republic of the Philippines as of the
last day of the month preceding the making of such loan. Any such loan
shall be used by the Corporation solely in carrying out its functions
with respect to such insurance."
Sec. 8. Section 14 of the same Act is hereby
amended to read as follows:
"Sec. 14. With the approval of the President of the
Philippines, to issue bonds, debentures, and other obligations whenever
its capital or funds are not sufficient to meet its obligations to
depositors whose deposits are insured: provided, that the board of
directors shall determine the interest rates, maturity and other
requirements of said obligations: provided, further, that the
corporation shall provide for appropriate reserves for the redemption
or retirement of said obligations.
"All notes, debentures, bonds or such obligations issued by the
Corporation shall be exempt from taxation."
Sec. 9. Section 16 (a) of the same Act is hereby
amended to read as follows:
"Sec. 16. (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 of 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 regulation the forms
of such signs and the manner of display and the substance of such
statements 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 P100.00 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 two thousand pesos (P2,000.00)
or both, in the discretion of the court shall be imposed upon:
"1. The directors and officers of any Bank,
Corporation, partnership or any other company performing banking
functions in the Philippines not 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.
"2. The directors and officers of a bank whose
insured status had already been terminated, if such bank shall continue
to advertise in any manner or hold itself out as having insured
deposits, unless in the same connection, it shall also state with the
same prominence that additional and/or new deposits made after the
effective date of termination of its insured status are no longer
insured.
"3. Any person, who knowing the purpose for which the
official sign, advertising statement and/or emblem, as duly prescribed
by the board of directors of the corporation is to be used, reproduces
or supplies such official sign, advertising statement and/or emblem or
a colorable imitation thereof, for the use of a bank not insured under
the provisions of this act, to enable such bank to fraudulently use the
same in connection with the advertising of its services.
"(b) No insured bank shall pay any dividends on its
capital stock or interest on its capital notes or debentures (if such
interest is required to be paid only out of net profits) or distribute
any of its capital assets while it remains in default in the payment of
any assessment due to the Corporation; and any director or officer of
any insured bank who participates in the declaration or payment of any
such dividend or interest or in any such distribution shall, upon
conviction, be fined not more than P1,000 or imprisoned not more than
one year, or both: provided, that if such default is due to a dispute
between the insured bank and the Corporation over the amount of such
assessment, this subsection shall not apply, if such bank shall deposit
security satisfactory to the Corporation for payment upon final
determination of the issue.
"(c) Without prior written consent by the
Corporation, no insured bank shall (1) merge or consolidate with any
non-insured bank or institution or convert into a non-insured bank or
institution or (2) assume liability to pay any deposits made in, or
similar liabilities of, any non-insured bank or institution or (3)
transfer assets to any non-insured bank or institution in consideration
of the assumption of liabilities for any portion of the deposits made
in such insured bank.
"(d) The Corporation may require any insured bank to
provide protection and indemnity against burglary, defalcation, and
other similar insurable losses. Whenever any insured bank refuses to
comply with any such requirement the Corporation may contact for such
protection and indemnity and add the cost thereof to the assessment
otherwise payable by such bank.
"(e) Any insured bank which willfully fails or
refuses to file any certified statement or pay any assessment required
under this Act shall be subject to a penalty of not more than P100 for
each day that such violations continue, which penalty the Corporation
may recover for its use: provided, that this subsection shall not be
applicable under the circumstances stated in the provisions of
subsection (b) of this section."
SECTION 10. This Act shall take effect upon its
approval.
Approved: August 4, 1969
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