Section 10Sec./Art. 10

Penalty Clause. - The BSP shall impose administrative sanctions and other penalties on the lending institutions for noncompliance with the provisions of this Act. Penalties on noncompliance shall be computed at one-half of one percent (0.5%) of noncompliance and undercompliance and shall be directed to the development of the agri-agra sector. Ninety percent(90%) of the penalties collected shall be allocated between the AGFP and PCIC according to the needs of the agri-agra sector as provided for in implementing rules and regulations of this Act and the remaining ten percent (10%) shall be given to the BSP to cover administrative expenses.