Section 1. Sec. 75 of Republic Act No. 3844, as amended,
is hereby further amended by adding the following subsections to read
as follows:
"(12) to act as an official government depository
with full authority to maintain deposits of the government, its
branches, subdivisions and instrumentalities, and of government-owned
or -controlled corporations which deposits shall be subject to
liquidity floor and/or reserve requirements as may be imposed by the
Monetary Board upon other commercial banks;
"(13) for the strengthening of the capital base of
the bank, to establish a national marketing umbrella for farmers and
fisheries cooperatives to attract massive capital formation from
savings deposits of the cooperative members nationwide."
The existing subsection 12 is hereby renumbered as subsection 14
Sec. 2. Sec. 78 of the same Act is hereby
further amended by adding a new paragraph thereto to read as follows:
"Apart from the foregoing which pertains to the twenty-five years bonds
previously issued by the bank and pursuant to its role as the financial
intermediary of the Comprehensive Agrarian Reform Program, mandated
under Republic Act No. 6657, the National Government through the
Presidential Agrarian Reform Council (PARC), shall provide and/or
allocate from the existing Agrarian Reform Fund or other unappropriated
funds of the National Treasury an amount sufficient to pay all maturing
bonds, debentures and all other obligations together with interest due
thereon issued and/or incurred by the bank as compensation to the
landowners including expenses related thereto. In the
apportionment and distribution of funds from the Agrarian Reform Fund,
the PARC shall give priority and preference to the payment of landowner
compensation in the chronological sequence or order at which the
voluntary offers of sale were made by the landowners."
Sec. 3. Sec. 80 of the same Act is hereby
further amended by adding a new subsection thereto to read as follows:
"(7) At least sixty percent (60%) of the proceeds of
the sale of the stocks, securities and other assets of the government
now under administration by the Assets Privatization Trust (APT) shall
be transferred to the Land Bank of the Philippines for use in the
payment of agricultural lands acquired pursuant to Presidential Decree
No. 27 and Republic Act No. 6657."
Sec. 4. Sec. 81 of the same Act is hereby
amended to read as follows:
"Sec. 81. Capital. — The authorized capital stock of
the Bank shall be nine billion pesos, divided into seven hundred and
eighty million common shares with a par value of ten pesos each, which
shall be fully subscribed by the Government, and one hundred and twenty
million preferred shares with a par value of ten pesos each, which
shall be issued in accordance with the provisions of Section s
seventy-seven and eighty-three of this Code. These preferred
shares shall be non-voting. The Board, upon the recommendation of
the Secretary of Finance and with the approval of the President of the
Philippines, may increase the capitalization of the Bank up to such an
amount as may be necessary to attain the objectives of this Act.
The total capital stock subscribed by the Government shall be paid by
the Agrarian Reform Fund Commission created under Presidential Decree
No. 85, hereinafter referred to as the "Commission," as follows: four
hundred million pesos within sixty (60) days from the approval of this
Decree, and at least one hundred million pesos every year thereafter
until the total subscription of the Government is fully paid: provided,
that the common and preferred shares of the Bank which have been
issued, including those already subscribed, shall form part of the
increased capitalization of the Bank: provided, further, that the
additional common shares subscribed by the Government shall be paid by
the bank through its banking operations in an amount equivalent to at
least ten percent (10%) of its annual net income or any form of
retained earnings until fully paid: provided, finally, that the
dividends due the Government shall first be paid."
Sec. 5. Sec. 86 of the same Act relating to the
Membership of its Board of Directors, as amended, is hereby further
amended to read as follows:
"Sec. 86. The Board of Directors; Membership; Per
Diem. — The affairs and business of the Bank shall be directed and its
property managed and preserved by a Board of Directors consisting of
nine (9) members to be composed of the Secretary of Finance, as
Chairman, the President of the Bank as Vice-Chairman, the Secretary of
Agrarian Reform, the Secretary of Labor, and the Secretary of
Agriculture as ex officio members. The President of the
Philippines shall appoint two (2) members of the Board who shall
represent the agrarian reform beneficiaries and two (2) members who
shall represent the private sector. The two (2) remaining members
shall be elected from the shareholders coming from the public sector to
the extent that they may be entitled to two (2) seats in proportion to
the outstanding capital stock.
"Annually, on the first Tuesday after the first Monday in December, the
stockholders shall meet to take up, among others, the election of two
(2) members of the Board of Directors for the succeeding year.
Each shareholder or proxy shall be entitled to as many votes as he may
have shares of stock registered in his name of the 31st day of October
last preceding and held by him at the time of the election. The
two (2) members of the Board of Directors shall be elected preferably
from the holders of the preferred shares on the basis of the
outstanding amount of shares as follows:
"(a) Not exceeding P100.0 M — one member
"(b) Exceeding P100.0 M — two members
"The appointive members of the Board shall hold a term of office for
one (1) year and shall continue to hold office until their successor
shall have been appointed and qualified. The Board shall convene
as often as necessary to discharge its responsibilities properly, but
shall meet at least once every two (2) weeks. The Board may be
convoked either by the Chairman or in his absence, the Vice-Chairman.
"The majority of the board members shall constitute a quorum. All
decisions of the Board shall require the concurrence of at least a
majority.
"No person shall be elected or appointed director of the Bank unless he
is natural born citizen of the Philippines, not less than thirty-five
(35) years of age, of good moral character, and has attained
proficiency, expertise and recognized competence in one or more of the
following: banking, finance, economics, law, agriculture, agrarian
reform, business management: provided, further, that no director,
shareholder or employee of any other bank shall be eligible for
election or appointment as member of the Board of Directors of the Bank.
"The Chairman and the members of the Board shall receive a per diem of
One thousand five hundred pesos (P1,500) for each session of the Board
attended but in no case not to exceed Seven thousand five hundred pesos
(P7,500) a month."
Sec. 6. Sec. 86-A of the same Act relating to
the powers and responsibilities of the Board is hereby amended by
adding subsection 6 which reads as follows: i
"6. To compromise or release, in whole or in part,
any claim or liability whatsoever for or against the bank, including
interest, penalties, fees and/or other charges, under such terms and
conditions as the board may find acceptable and practicable subject to
their best business judgment and to the best interest of the
corporation in accord with standard banking practices."
Sec. 7. A new Sec. 86-B is hereby added to read
as follows:
"Sec. 86-b foreclosure of collaterals and disposal of bank acquired
properties —
"1. Foreclosure of Mortgage Collaterals — Foreclosure
of mortgage collaterals to loans may be made either judicially or
extrajudicially.
"2. Deputization of Legal Staff — The bank may, with
the approval of the court, deputize any member of its legal staff to
act as special sheriff in foreclosure cases, in the sale or attachment
of debtor's properties and in the enforcement of court writs and
processes in cases involving the bank. The special Sheriff of the
bank shall make a report to the proper court after any action has been
taken by him, which court shall treat such actions as if it were an act
of its own sheriffs in all respect.
"3. Disposal of Real Estate and Other Properties in
the Collection of Debt — Real estate and other properties acquired by
the bank in the collection of debts or investment by way of foreclosure
or other means shall be sold or disposed of in accordance with law,
within five (5) years after date of acquisition. The sale or disposal
shall be effected through public bidding, in accordance with law.
"4. Exemption from Attachment — The provisions of any
law to the contrary notwithstanding, securities on loans and/or other
credit accommodations granted by the bank shall not be subject to
attachment, execution to any other court process, nor shall they be
included in the property of insolvent persons or institutions, unless
all debts and obligations of the debtors to the bank have been paid,
including accrued interest, penalties, collection expenses, and other
charges.
"5. Right of Redemption of Foreclosed Property; Right
of Possession during Redemption Period — Within one (1) year from the
registration of the foreclosure sale of real estate, the mortgagor
shall have the right to redeem the property by paying all claims of the
bank against him on the date of the sale including all the cost and
other expenses incurred by reason of the foreclosure sale and custody
of the property, as well as charges and accrued interest. That
bank may take possession of the foreclosed property during the
redemption period. The bank shall be eligible to post a bond for
the purpose of such possession."
Sec. 8. Sec. 87 of the same Act is hereby
amended to read as follows:
"Sec. 87. Executive Officers: Compensation. — The
Chief Executive of the Bank shall be the President, who shall be chosen
and may be removed by the Board of Directors with the advice and
consent of the President of the Philippines. His salary shall be
fixed by the Board of Directors with the approval of the President of
the Philippines. The President shall be assisted by
Vice-Presidents as may be required, whose appointments and removal
shall be approved and whose salaries shall be fixed in accordance with
Sec. 90 hereof by the Board of Directors upon recommendation of the
President of the Bank."
Sec. 9. Sec. 88 of the same Act prescribing the
qualifications of Executive Officers is also hereby amended to read as
follows:
"No person shall be appointed to any executive position in the Bank
mentioned in the preceding section unless he be of good moral character
and of unquestionable integrity and responsibility, and who is of
recognized competence in the field of economics, agriculture, industry,
law, banking and/or finance, and possessed of demonstrated
administrative skill and ability."
SECTION 10. Sec. 90 of the same Act is hereby
amended to read as follows:
"Sec. 90. Personnel. — The Board of Directors shall
provide for an organization and staff of officers and employees of the
Bank and upon recommendation of the President of the Bank, appoint and
fix their remunerations and other emoluments, and remove such officers
and employees: provided, that the Board shall have exclusive and final
authority to promote, transfer, assign or reassign personnel of the
Bank, any provisions of existing law to the contrary notwithstanding.
"All positions in the Bank shall be governed by a compensation,
position classification system and qualification standards approved by
the Bank's Board of Directors based on a comprehensive job analysis and
audit of actual duties and responsibilities. The compensation
plan shall be comparable with the prevailing compensation plans in the
private sector and shall be subject to periodic review by the Board no
more than once every two (2) years without prejudice to yearly merit
reviews or increases based on productivity and profitability. The
Bank shall thereforee be exempt from existing laws, rules and
regulations on compensation, position classification and qualification
standards. It shall however endeavor to make its system conform
as closely as possible with the principles under Republic Act No. 6758.
"The Bank officers and employees, including all members of the Board,
shall not engage directly or indirectly in partisan activities or take
part in any election except to vote.
"No officer or employee of the Bank subject to the Civil Service Law
and Regulations shall be removed or suspended except for cause as
provided by law."
SECTION 11. Separability Clause. — If any provision
or part hereof is held invalid, the other provisions not affected
thereby shall remain and continue in full force and effect. i
SECTION 12. Repealing Clause. — All laws, executive
orders, rules and regulations or parts thereof inconsistent with any
provision hereof are hereby repealed or modified accordingly.
SECTION 13. Effectivity. — This Act shall take effect
upon its approval.
Approved: February 23, 1995
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