Article 169Supplement v1, p. 169

COMMERCIAL LAWS SUPPLEMENT

any voluntary witness and to compel the presentation of

all books, documents, papers or records necessary in his

judgment to ascertain the facts relative to the true

condition of any Association or to any loan.

Section 23. Penalties . – a) The provisions of Sec. 34 of

Republic Act No. 7653 shall apply to any agent, manager,

or other officer-in-charge of any Association who willfully

refuses any lawful examination into the affairs of such

Association.

b) The willful making of a false statement or misleading

statement on a material fact to the Monetary Board or to

the director of the department of the Bangko Sentral

charged with the regulation of Associations or to his

examiners shall be punished in accordance with Sec. 35 of

Republic Act No. 7653.

c) Whenever any Association, person or entity willfully

violates

this

Act

or

any

order,

instruction,

rule

or

regulation issued by the Monetary Board applicable to

Associations, the persons responsible for such violation

shall be punished in accordance with Sec. 36 of Republic

Act No. 7653.

d)

Whenever any officer, employee, or agent of an

Association accepts gifts, fees or commissions or any

other form of remuneration in connection with the

approval of a loan from said Association; or overvalues or

aids

in

overvaluing any security for the purpose of

influencing in any way the action of the Association on

any

loan,

such

officer,

employee or agent shall be

punished by a fine of not more than Ten thousand pesos

(P10,000)

or

three

times the loan amount involved,

whichever is higher, or imprisonment for not more than

one (1) year, at the discretion of the court.

e) Whenever any applicant for a loan, or borrower of an

Association fraudulently overvalues property offered as

security for loan from the said Association; or furnishes

false, or makes willful misrepresentation of material facts

for the purpose of obtaining, renewing, or increasing a

loan or extending the period thereof; or attempts to

defraud the said Association in the event of a court action

to recover a loan; or offers any officer, of a court action to

recover a loan; or offers any officer, employee or agent of

an Association any gift, fee, commission, or other form of

compensation in order to influence such Association

personnel

into

approving

a

loan

application;

such

applicant or borrower shall be punished by a fine of not

more than Five thousand pesos (P5,000) or three times

the

loan

amount

involved,

whichever

is

higher,

or

imprisonment for not more than one (1) year, at the

discretion of the court.

f) Whenever any examiner, officer or employee of the

Bangko Sentral, who is assigned to examine, assist or

render technical service to an Association, overvalues or

aids

in

overvaluing any security for the purpose of

influencing in any way the action of the Association on

any loan or connives or aids in the commission of the

same, he shall be punished by a fine of not more than Ten

thousand pesos (P10,000) or three times the loan amount

involved, whichever is higher, or imprisonment for not

more than one (1) year, at the discretion of the court.

Section 24. Annual fees . – Consistent with the provisions

of Sec. 28 of Republic Act No. 7653, any Association

organized under this Act may, pursuant to regulations

promulgated for the purpose by the Monetary Board, be

required to contribute to the Bangko Sentral an annual

fee to be determined by the Monetary Board.

Section

25.

Implementation .

–

For

the purpose of

carrying the objectives of this Act, the Bangko Sentral is

authorized to require the services and facilities of any

department or instrumentality of the government or any

officer

or

employee

of

any

such

department

or

instrumentality.

Section 26. Annual report of the Monetary Board . – The

Monetary Board shall submit a report to the Congress of

the Philippines as of the end of each calendar year of all

the

rules

and

regulations

promulgated

by

it

in

accordance with the provisions of this Act, together with

the explanations of its reasons therefor.

Section 27. Industry Association . – Membership in an

existing association of Associations duly accredited and

recognized by the Bangko Sentral, is hereby encouraged.

Section 28. Applicability of other laws . – The provisions

of Republic Act No. 7653 and Republic Act No. 337, as

amended, insofar as they are applicable and not in

conflict with any provision of this Act, shall apply to

Associations organized hereunder.

Section 29. Separability clause . – If any provision of this

Act

or

the

application

thereof

to

any

persons

or

circumstances is held invalid, the other provisions of this

Act and the application of such provisions to other

persons and circumstances, shall not be affected thereby.

Section 30. Repealing clause . – Republic Act No. 3779, as

amended, is hereby repealed. Any law or parts of law

inconsistent with the provisions of this Act are hereby

repealed. In all matters affecting the price stability of the

peso, the provisions of Republic Act No. 7653 shall prevail.

Section 31. Effectivity . – This Act shall take effect fifteen

(15) days following the completion of its publication in the

Official Gazette or in two (2) national newspapers of

general circulation.

Approved: October 21, 1997 .

RA No 7906 | Thrift Banks Act of 1995

February 23, 1995

REPUBLIC ACT NO. 7906

AN ACT PROVIDING FOR THE REGULATION OF THE

ORGANIZATION AND OPERATIONS OF THRIFT BANKS,

AND FOR OTHER PURPOSES

CHAPTER I Declaration of Policy and Definitions

SECTION 1. Title . — This Act shall be known and cited as

the "Thrift Banks Act of 1995."

SECTION 2. Declaration of Policy . — It is hereby declared

the policy of the State to:

(a) Recognize the indispensable role of the private sector,

to encourage private enterprise, and to provide incentives

to needed investments;

(b) Promote economic development pursuant to the

socio-economic program of the government, to expand

industrial and agricultural growth, to encourage the

establishment of more private thrift banks in order to

meet the needs for capital, personal and investment

credit

or

medium-

and long-term loans for Filipino

entrepreneurs;

(c) Encourage and assist the establishment of thrift bank

system which will promote agriculture and industry and

at the same time place within easy reach of the people

the medium- and long-term credit facilities at reasonable

cost;

(d) Encourage industry, frugality and the accumulation of

savings

among

the

public,

and

the

members

and

stockholders of thrift banks; and

(e) Regulate and supervise the activities of thrift banks in

order to place their operations on a sound, stable and

efficient basis and to curtail or prevent acts or practices

which are prejudicial to the public interest.

SECTION

3. Definition of Terms . — For purposes of

implementing this Act, the following definitions shall

apply:

(a) "Thrift banks" shall include savings and mortgage

banks, private development banks, and stock savings and

© Compiled by RGL

169 of 203