Article 173Supplement v1, p. 173

COMMERCIAL LAWS SUPPLEMENT

judge in his capacity as notary public ex officio shall

administer the oath to or acknowledge the instrument of

any thrift bank and its borrowers or mortgagor free from

all charges, fees and documentary stamp tax, collectible

under existing laws, relative to any loan or transaction not

exceeding

Fifty

thousand

pesos

(P50,000)

or

such

amount

as

the

Secretary

of

Finance,

upon

recommendation of the Monetary Board, may prescribe

as

may

be

necessary

to

promote

and

expand the

economy.

SECTION 20. Exemption from Registration Fees . — Any

register of deeds shall accept from any thrift bank and its

borrowers and mortgagors for registration, free from all

charges, fees and documentary stamp tax, collectible

under existing laws, any instrument, whether voluntary or

involuntary, relating to loans or transactions extended by

any

thrift

bank

in

an

amount

not

exceeding

Fifty

thousand

pesos

(P50,000):

Provided ,

however ,

That

charges, if any, shall be collectible on the amount in

excess of Fifty thousand pesos (P50,000); and that an

instrument related to assignments of several mortgages

consolidated in a single deed, if any, shall be levied only

on

the

amount

in

excess

of

Fifty

thousand

pesos

(P50,000) of the consideration in the assignment of each

mortgage, or such amount as the Secretary of Finance,

upon recommendation of the Monetary Board, may

prescribe as may be necessary to promote and expand

the economy.

CHAPTER VIII Prohibitions

SECTION 21. Prohibited Acts . — Without prejudice to any

prosecution

under

any

law

which

may

have

been

violated, a fine of not more than Ten thousand pesos

(P10,000) or imprisonment for not less than six (6) months

but not more than ten (10) years, or both, at the discretion

of the court, shall be imposed upon:

(a) Any officer, employee, or agent of a thrift bank who

shall:

(1) Make false entries in any bank report or statement

thereby affecting the financial interest of, or causing

damage to, the bank or any person; or

(2) Without order of a court of competent jurisdiction,

disclose

any

information

relative

to

the

funds

or

properties in the custody of the bank belonging to private

individuals, corporations, or any other entity; or

(3) Accept gifts, fees or commissions or any other form of

remuneration in connection with the approval of a loan

from said bank; or

(4) Overvalue or aid in the overvaluing any security for the

purpose of influencing in any way the action of the bank

on any loan; or

(5) Appear and sign as guarantor, indorser, or surety for

loans granted; or

(6) Violate any provision of this Act.

(b) Any applicant for a loan from, or borrower of a thrift

bank who shall:

(1) Misuse, misapply or divert the proceeds of the loan

obtained by him from its declared purpose; or

(2) Fraudulently overvalue property offered as security for

a loan from said bank; or

(3) Give out or furnish false or willful misinterpretation of

material facts for the purpose of obtaining, renewing, or

increasing a loan extending the period thereof; or

(4) Attempt to defraud the said bank in the event of court

action to recover the loan; or

(5) Offer any officer, employee or agent of a thrift bank a

gift, fee, commission or other forms of compensation in

order to influence such bank personnel into approving a

loan application; or

(6) Dispose or encumber the property offered as security

for the loan.

(c) Any examiner, or officer or employee of the Bangko

Sentral or of any department, bureau, office, branch, or

agency of the government who is assigned to examine,

supervise, assist or render technical service to thrift banks

and who shall connive or aid in the commission of the

same.

(d) Any metropolitan, municipal, or municipal circuit trial

court judge or register of deeds who shall demand or

accept, directly or indirectly, any gift, fee, commission, or

any other form of compensation in connection with the

service, or shall arbitrarily and without reasonable cause

delay the acknowledgment or administration of oath or

the registration of documents required to be performed

by said judge or by said register of deeds shall be

punished with a fine of not more than One thousand

pesos (P1,000) or by imprisonment of not more than one

(1) year, or both, at the discretion of the court.

(e) Any bank not organized under this Act and any

person, association, or corporation doing the business of

banking, not authorized under this Act or existing laws

which shall use the words "Development Bank," "Savings

Bank," "Mortgage Bank," "Savings and Mortgage Bank," or

"Savings and Loan Association," as part of the name or

title of such bank or of such person, association, or

corporation, shall be punished by a fine of not less than

One hundred pesos (P100), but in no case to exceed Thirty

thousand pesos (P30,000), for each day during which the

said words are so used.

CHAPTER IX General Provisions

SECTION 22. Minors as Depositors . — Minors in their own

rights and in their own names may make deposits and

withdraw the same, and may receive dividends and

interest: Provided , however , That, if any guardian shall

give notice in writing to any thrift bank not to make

payments of deposits, dividends, or interest to the minor

of whom he is the guardian, then such payment shall be

made only to the guardian.

SECTION 23. Return of Deposits . — Deposits shall be

returned

to

the

depositors

or

to

their

legal

representatives in the manner and at the time and under

the conditions which shall be determined by the board of

directors and stipulated in regulations which shall be in

conformity with laws and with such regulations as the

Monetary Board may prescribe.

SECTION 24. Deposit Insurance . — Deposit in thrift banks

shall be eligible for insurance coverage under Republic

Act No. 3591 , as amended.

SECTION

25.

Annual

Fees .

—

Consistent

with

the

provisions of Section 28 of Republic Act No. 7653 , any

thrift bank 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 in an amount to be determined by

the Monetary Board.

SECTION 26. 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

government instrumentality.

SECTION 27. Annual Report . — The Monetary Board shall

submit a report to the Congress of the Philippines at the

end of each calendar year of all the rules and regulations

promulgated by it in accordance with the provisions of

this Act, as well as its other actuations in connection with

thrift banks together with an explanation of its reasons

therefor and recommendations on legislative actions.

© Compiled by RGL

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