Section 12Sec./Art. 12

Investment in Allied Undertakings. - Subject to such guidelines as may be established by the Monetary Board, thrift banks may invest in equities of allied undertakings as hereinafter enumerated: Provided, That: (a) the total investment in equities shall not exceed twenty-five percent (25%) of the net worth of the thrift bank; (b) the equity investment in any single enterprise shall be limited to fifteen percent (15%) of the net worth of the thrift bank; (c) the equity investment of the thrift bank in any single enterprise shall remain a minority holding in that enterprise; and (d) the equity investment in other banks shall be subject to the same provisions governing similar investments of commercial banks and shall be deducted from the investing bank's net worth for the purpose of computing of the prescribed ratio as provided in Section 9 hereof: Provided, further, That equity investments shall not be permitted in non-related activities.

Where the allied activity is a wholly- or majority-owned subsidiary of the thrift bank, the Bangko Sentral may subject it to examination.

Investment in allied undertaking shall include institutions engaged in the following activities:

a. Banking and financing;

b. Warehousing and other post-harvesting activities;

c. Fertilizer and agricultural chemical and pesticides distribution;

d. Farm equipment distribution;

e. Trucking and transportation of agricultural products;

f. Marketing of agricultural products;

g. Leasing; and

h. Other undertakings as may be determined by the Monetary Board.

CHAPTER V - SUPERVISION