Section 26Sec./Art. 26

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 of not less than six (6) months but not more than ten (10) years, or both, at the discretion of the court, shall imposed upon:

a. Any officer, employee, or agent of a rural bank who shall:

1. Make fake entries in any bank report or statement thereby affecting the financial interest of or causing damage to, the bank or any person;

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;

3. Accept gifts, fees or commission or any other form of remuneration in connection with the approval of a loan from said bank; or

4. Overvalue or aid in 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 of the provisions of this Act.

b. Any applicant for a loan from, or borrower of a rural 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 loan from said bank; or

3. Give out or furnish false misrepresentation of material facts for the purpose of obtaining, renewing, or increasing a loan or extending the period thereof; or

4. Attempt to defraud the said bank in the event of court action to recover a loan; or

5. Offer any officer, employee, or agent of a rural bank as a gift, fee, commission, or other form of compensation in order to influence such bank personality in approving an application; or

6. Dispose or encumber the property or the crops offered as security for the loan.

c. Any examiner, or officer or employee of the Central Bank of the Philippines or other department, bureau, office, branch or agency of the Government who is assigned to examine, supervise, assist or render technical services to rural banks and who shall connive or aid in the commission of the same.