Article 124Labor and Agrarian Laws and Social Legislation, p. 124

LABOR LAWS AND SOCIAL LEGISLATION SPECIAL LAWS AND IMPLEMENTING RULES AND REGULATIONS

5. Approve the budget of the Bank. (Amending

R.A. No. 3844 As Amended (Code of Agrarian Reform),

Presidential Decree No. 251, [July 21, 1973])

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. (Amendment to

R.A.

No.

3844

(Code

of

Agrarian

Reform

in

the

Philippines), Republic Act No. 7907, [February 23, 1995])

Section 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.

(Amendment to R.A. No. 3844 (Code of Agrarian Reform

in the Philippines), Republic Act No. 7907, [February 23,

1995])

Section 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 Section 90 hereof by the

Board

of

Directors

upon

recommendation

of

the

President of the Bank. (Amendment to R.A. No. 3844

(Code of Agrarian Reform in the Philippines), Republic

Act No. 7907, [February 23, 1995])

Section 87-A. Duties and Powers of the President . — The

President of the Bank shall, among others, execute the

policies, measures, orders and resolutions promulgated

by the Board of Directors and supervise and administer

the

operation

of

the

Bank.

He

shall

be

the

legal

representative of the Bank and shall make all contracts,

enter into all necessary obligations on behalf of the bank

required or permitted by this Decree. He shall report

periodically to the Board of Directors the main facts

concerning the operations of the Bank, and recommend

changes of policies which may to him seem best. He shall

furnish, upon request of the President of the Philippines,

any

information

in

his

possession

regarding

the

operations of the bank. (Amending R.A. No. 3844 As

Amended (Code of Agrarian Reform), Presidential Decree

No. 251, [July 21, 1973])

Section 88. Qualifications of Executive Officers - 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. (Amending R.A. No. 3844

As Amended (Code of Agrarian Reform), Presidential

Decree

No.

251, [July 21, 1973], further amended by

Republic Act No. 7907, [February 23, 1995])

Section

89.

Withdrawal

of

Person Having Personal

Interest - Whenever any member attending a meeting of

the Board has a personal interest of any sort in the

discussion or resolution of any given matter, or any of his

relatives within the fourth degree of consanguinity or

second degree of affinity has such an interest, shall not

participate in the discussion or resolution of the matter

and

must

retire

from

the

meeting

during

the

deliberations thereon. The subject matter, when resolved,

and the fact available to the public. The minutes of the

meeting

shall

note

the

withdrawal of the member

concerned. (Amending R.A. No. 3844 As Amended (Code

of Agrarian Reform), Presidential Decree No. 251, [July 21,

1973])

Section 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 therefore 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.

(Amending R.A. No. 3844 As Amended (Code of Agrarian

Reform), Presidential Decree No. 251, [July 21, 1973], further

amended by Republic Act No. 7907, [February 23, 1995])

Section 91. Legal counsel - Any provision of existing law

or executive order to the contrary notwithstanding, the

Bank shall have its own Legal Department, the chief and

members of which shall be appointed by the Board of

Directors. (Amending R.A. No. 3844 As Amended (Code of

Agrarian Reform), Presidential Decree No. 251, [July 21,

1973])

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