Section 14Sec./Art. 14

Section 16, subsections (a), (d), (e) and (f) of the same Act is hereby amended to read as follows:

"(a) Every insured bank shall display at each place of business maintained by it a sign or signs, and shall include a statement to the effect that its deposits are insured by the Corporation in all its advertisements:Provided,That the Board of Directors may exempt from this requirement advertisements which do not relate to deposits or when it is impractical to include such statement therein. The Board of Directors shall prescribe by regulations the forms of such signs and the manner of use.

For each day an insured bank continues to violate any provisions of this subsection or any lawful provisions of said regulations, it shall be subject to a penalty of not more than One thousand pesos (PI,000.00) which the Corporation may recover for its use:Provided, however,That the penalty of imprisonment for not more than one (1) year or a fine of not exceeding Twenty thousand pesos(P20, 000.00) or both, in the discretion of the court shall be imposed upon directors and officers of any bank not insured under the provisions of this Act which shall in any manner, advertise or hold itself out as having insured status for the purpose of making it appear that its deposits are insured with the Corporation."

"(d) The Corporation may require an insured bank to provide protection and indemnity against burglary, defalcation, losses arising from discharge of duties by, or particular acts of defaults of its directors, officers, or employees, and other similar insurable losses. The Board of Directors in consultation with the Central Bank, shall determine the bonding requirement as it refers to directors, officers and employers of the insured bank as well as the form and amount of the bond. Whenever any insured bank refuses to comply with any such requirement the Corporation may contract for such protection and add the cost thereof to the assessment otherwise payable by such bank."1шphi1

"(e) Any assessment payable by an insured bank under this Act shall be subject to payment of interest computed from the date such assessment became due and payable and at the legal rate for loans as prescribed by law or appropriate authority and in case of willful failure or refusal to pay such assessment and interest thereon, there shall be added a penalty equivalent to twice the amount of interest payable as computed herein for each day such violations continue, which the interest and penalty the Corporation may recover for its use:Provided,That the penalty shall not be applicable under the circumstances stated in the provisions of subsection (b) of this Section."

"(f) The Board of Directors is hereby authorized at its discretion to impose upon insured banks, their directors and/or officers, for any willful delay in the submission of reports as required by law, rules and regulations; any refusal to permit examination in the affairs of the institution; any willful making of a false statement to the Corporation; any willful failure or refusal to comply with, or violation of any provision of this Act, or any order, instruction or regulations issued by the Corporation or any commission of irregularities, and/or conducting business in an unsafe or unsound manner as may be determined by the Board of Directors, a fine not exceeding One thousand pesos (P1,000.00) a day for each type of violation, the imposition of which shall be final and executory until reversed, modified or lifted by the Board of Directors."