Section 22October 21, 1997, Sec./Art. 22

Regulatory powers over Associations. – Notwithstanding the provisions of Sec. 130 of Republic Act No. 7653, the power to regulate the operations of any Association by the Monetary Board shall continue and consist of the following:

a) in seeing to it that the capital, financing, direction and administration, as well as the integrity, responsibility, and ability of organizers, administrators, trustees, and officers of all Associations organized and operated under this Act, shall reasonably assure the safety of the interests which its members entrust to them;

b) in regulating the operation and activities of Associations, which include, among others: 1) in placing limits to the maximum credit allowed any individual borrower; 2) in determining the loan repayment period and loan procedures; 3) in imposing a uniform accounting system and manner of keeping the accounts and records of Associations; 4) in instituting periodic surveys of loan and lending procedures, audits, test check of each and other transactions of Associations; and 5) whenever necessary, in conducting training courses for personnel of Associations;

c) in requiring all accountable officers and employees of every Association to post bonds for the faithful performance of their duties in reasonable sums and with such sureties as the Monetary Board may require;

d) in fixing, by rules or by orders, in specific cases, after notice and hearing, the limits of loanable funds, amounts for investment and reserves for withdrawals and other contingencies;

e) in issuing rules and regulations for the proper implementation of this Act, effective administration of the Associations, and to render advisory assistance to all interested parties in order to carry out the intents and purposes of this Act; and

f) in conducting such investigations, taking such remedial measures and exercising all powers under Republic Act No. 7653, insofar as they are applicable in the enforcement of this Act.

The Bangko Sentral shall have the power to enforce the laws, orders, instructions, rules and regulations promulgated by the Monetary Board applicable to Associations; to require Associations, their trustees, officers and agents to conduct and manage the affairs of the Association in a lawful and orderly manner. After due notice and hearing, the Monetary Board may revoke or suspend the license of any Association, for such period as it determines necessary, particularly when the solvency of an Association is imperiled by losses or irregularities, and/or when an Association willfully violates any provisions of this Act or any rule or regulations promulgated hereunder.

The director and examiners of the department of the Bangko Sentral charged with the regulation of Associations are hereby authorized to administer oaths to any trustee, officer or employee of any Association or to any voluntary witness and to compel the presentation of all books, documents, papers or records necessary in his judgment to ascertain the facts relative to the true condition of any Association or to any loan.