ra8791the general banking law of 2000

7/28/2019 RA8791The General Banking Law of 2000

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4.1. Th !""#$%& '( )#*" '(, &'%+#& ') h "$*!"h% "$%+$)+" '('/)$!'% (') #%!(') $//*!&$!'% ' $** !%"!#!'%" ') (#%&!'%" &'0)+,$!%2 !%' &'%"!+)$!'% h +!"!%&!0 &h$)$&) '( h '/)$!'%" '(!%"!#!'%" $%+ h "#"$%!0 "!!*$)!!" '( "/&!(!& (#%&!'%" ' 3h!&h"#&h )#*", '+" ') "$%+$)+" $) ' $//*!+

9.2. The co"'ct of e@ai"atio" to 'eteri"e co&lia"ce :ith la:s a"' re!latio"s ifthe circsta"ces so :arra"t as 'eteri"e' b* the ;o"etar* Boar'

9.-. O$erseei"! to ascertai" that la:s a"' re!latio"s are co&lie' :ith

9.9. 3e!lar i"$esti!atio" :hich shall "ot be ofte"er tha" o"ce a *ear fro the last 'ateof e@ai"atio" to 'eteri"e :hether a" i"stittio" is co"'cti"! its bsi"ess o" asafe or so"' basis/ Pro%ided, That the 'eficie"ciesirre!larities fo"' b* or'isco$ere' b* a" a'it shall be ie'iatel* a''resse'

9.. I"+iri"! i"to the sol$e"c* a"' li+i'it* of the i"stittio" or9.7. E"forci"! &ro&t correcti$e actio".

The Ba"!%o Se"tral shall also ha$e s&er$isio" o$er the o&eratio"s of a"' e@ercisere!lator* &o:ers o$er +asiba"%s, trst e"tities a"' other fi"a"cial i"stittio"s :hich "'ers&ecial la:s are sb?ect to Ba"!%o Se"tral s&er$isio".

For the &r&oses of this Act, )#asi*+anks! shall refer to e"tities e"!a!e' i" theborro:i"! of f"'s thro!h the issa"ce, e"'orsee"t or assi!"e"t :ith recorse oracce&ta"ce of 'e&osit sbstittes as 'efi"e' i" Sectio" 5 of 3e&blic Act No. 47- (hereafterthe ,ew Central Bank ct!) for &r&oses of rele"'i"! or &rchasi"! of recei$ables a"' otherobli!atio"s.

SEC.. Policy Direction- atios Ceilings and Li&itations.

The Ba"!%o Se"tral shall &ro$i'e &olic* 'irectio" i" the areas of o"e*, ba"%i"! a"'cre'it.

For this &r&ose, the ;o"etar* Boar' a* &rescribe ratios, ceili"!s, liitatio"s, or other forsof re!latio" o" the 'iffere"t t*&es of acco"ts a"' &ractices of ba"%s a"' +asiba"%s :hichshall, to the e@te"t feasible, co"for to i"ter"atio"all* acce&te' sta"'ar's, i"cl'i"! of theBa"% for I"ter"atio"al Settlee"ts (BIS). The ;o"etar* Boar' a* e@e&t &articlarcate!ories of tra"sactio"s fro sch ratios, ceili"!s, a"' liitatio"s, bt "ot liite' toe@ce&tio"al cases or to e"able a ba"% or +asiba"% "'er rehabilitatio" or 'ri"! a er!er orco"soli'atio" to co"ti"e i" bsi"ess, :ith safet* to its cre'itors, 'e&ositors a"' the !e"eral&blic.

SEC. 7.#thority to /ngage in Banking and #asi*Banking 1#nctions.

No &erso" or e"tit* shall e"!a!e i" ba"%i"! o&eratio"s or +asiba"%i"! f"ctio"s:ithot athorit* fro the Ba"!%o Se"tral/ Pro%ided howe%erThat a" e"tit* athori#e' b* theBa"!%o Se"tral to &erfor "i$ersal or coercial ba"%i"! f"ctio"s shall li%e:ise ha$e theathorit* to e"!a!e i" +asiba"%i"! f"ctio"s. The 'eteri"atio" of :hether a &erso" or e"tit*is &erfori"! ba"%i"! or +asiba"%i"! f"ctio"s :ithot Ba"!%o Se"tral athorit* shall be'eci'e' b* the ;o"etar* Boar'. To resol$e sch isse, the ;o"etar* Boar' a* thro!h thea&&ro&riate s&er$isi"! a"' e@ai"i"! 'e&arte"t of the Ba"!%o Se"tral, e@ai"e, i"s&ect ori"$esti!ate the boo%s a"' recor's of sch &erso" or e"tit*. 0&o" issa"ce of this athorit*,sch &erso" or e"tit* a* coe"ce to e"!a!e i" ba"%i"! o&eratio"s or +asiba"%i"!f"ctio" a"' shall co"ti"e to 'o so "less sch athorit* is soo"er srre"'ere', re$o%e',ss&e"'e' or a""lle' b* the Ba"!%o Se"tral i" accor'a"ce :ith this Act or other s&ecial la:s.

The 'e&arte"t hea' a"' the e@ai"ers of the a&&ro&riate s&er$isi"! a"' e@ai"i"!'e&arte"t are hereb* athori#e' to a'i"ister oaths to a"* sch &erso", e&lo*ee, officer,or 'irector of a"* sch e"tit* a"' to co&el the &rese"tatio" or &ro'ctio" of sch boo%s,'oce"ts, &a&ers or recor's that are reaso"abl* "ecessar* to ascertai" the facts relati$e tothe tre f"ctio"s a"' o&eratio"s of sch &erso" or e"tit*. Failre or refsal to co&l* :ith there+ire' &rese"tatio" or &ro'ctio" of sch boo%s, 'oce"ts, &a&ers or recor's :ithi" areaso"able tie shall sb?ect the &erso"s res&o"sible therefore to the &e"al sa"ctio"s&ro$i'e' "'er the Ne: Ce"tral Ba"% Act. erso"s or e"tities fo"' to be &erfori"! ba"%i"!or +asiba"%i"! f"ctio"s :ithot athorit* fro the Ba"!%o Se"tral shall be sb?ect toa&&ro&riate sa"ctio"s "'er the Ne: Ce"tral Ba"% Act a"' other a&&licable la:s.


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SEC.4. /a&ination +y the Bangko (entral.

The Ba"!%o Se"tral shall, :he" e@ai"i"! a ba"%, ha$e the athorit* to e@ai"e a"e"ter&rise :hich is :holl* or a?orit*o:"e' or co"trolle' b* the ba"%.

CHAPTER III

O3>ANIATION, ;ANA>E;ENTANDAD;INIST3ATION OF BANKS, 0ASIBANKS ANDT30ST ENTITIES

SEC.8. Organi3ation.

The ;o"etar* Boar' a* athori#e the or!a"i#atio" of a ba"% or +asiba"% sb?ect to thefollo:i"! co"'itio"s/

8.1 That the e"tit* is a stoc% cor&oratio"8.5 Th$ !" (#%+" $) '$!%+ ()' h /#*!&, 3h!&h "h$** $% 3%6 5')

') /)"'%" $%+8.- That the i"i ca&ital re+iree"ts &rescribe' b* the ;o"etar* Boar' for each

cate!or* of ba"%s are satisfie'.

No "e: coercial ba"% shall be establishe' :ithi" three (-) *ears fro the effecti$it*of this Act. I" the e@ercise of the athorit* !ra"te' herei", the ;o"etar* Boar' shall ta%e i"toco"si'eratio" their ca&abilit* i" ters of their fi"a"cial resorces a"' tech"ical e@&ertise a"'i"te!rit*. The ba"% lice"si"! &rocess shall i"cor&orate a" assesse"t of the ba"%s o:"ershi&strctre, 'irectors a"' se"ior a"a!ee"t, its o&erati"! &la" a"' i"ter"al co"trols as :ell asits &ro?ecte' fi"a"cial co"'itio" a"' ca&ital base.

SEC.5. 'ss#ance of (tocks.

The ;o"etar* Boar' a* &rescribe rles a"' re!latio"s o" the t*&es of stoc% a ba"%a* isse, i"cl'i"! the ters thereof a"' ri!hts a&&rte"a"t thereto to 'eteri"e co&lia"ce:ith la:s a"' re!latio"s !o$er"i"! ca&ital a"' e+it* strctre of ba"%s Pro%ided, Thatba"%s shall isse &ar $ale stoc%s o"l*.

SEC.16. Treas#ry (tocks.

No ba"% shall &rchase or ac+ire shares of its o:" ca&ital stoc% or acce&t its o:"shares as a secrit* for a loa", e@ce&t :he" athori#e' b* the ;o"etar* Boar'/ Pro%ided, Thati" e$er* case the stoc% so &rchase' or ac+ire' shall, :ithi" si@ (7) o"ths fro the tie ofits &rchase or ac+isitio", be sol' or 'is&ose' of at a &blic or &ri$ate sale.

SEC.11. 1oreign (tockholdings

Forei!" i"'i$i'als a"' "o"ba"% cor&oratio"s a* o:" or co"trol & to fort* &erce"t(96) of the $oti"! stoc% of a 'oestic ba"%. This rle shall a&&l* to Fili&i"os a"' 'oestic"o"ba"% cor&oratio"s. The &erce"ta!e of forei!"o:"e' $oti"! stoc%s i" a ba"% shall be'eteri"e' b* the citi#e"shi& of the i"'i$i'al stoc%hol'ers i" that ba"%. The citi#e"shi& of the

cor&oratio" :hich is a stoc%hol'er i" a ba"% shall follo: the citi#e"shi& of the co"trolli"!stoc%hol'ers of the cor&oratio", irres&ecti$e of the &lace of i"cor&oratio".

SEC.12. (tockholdings of 1a&ily Gro#$s of elated 'nterests.

Stoc%hol'i"!s of i"'i$i'als relate' to each other :ithi" the forth 'e!ree ofco"sa"!i"it* or affi"it*, le!itiate or coo"la:, shall be co"si'ere' fail* !ro&s orrelate' i"terests a"' st be fll* 'isclose' i" all tra"sactio"s b* sch cor&oratio"s or relate'!ro&s of &erso"s :ith the ba"%.


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SEC. 1-. Cor$orate (tockholdings.

T:o or ore cor&oratio"s o:"e' or co"trolle' b* the sae fail* !ro& or sae !ro&of &erso"s shall be co"si'ere' relate' i"terests a"' st be fll* 'isclose' i" all tra"sactio"sb* sch cor&oratio"s or relate' !ro& of &erso"s :ith the ba"%.

SEC.19. Certificate of #thority to egister.

The Secrities a"' E@cha"!e Coissio" shall "o re!ister the articles of i"cor&oratio"of a"* ba"%, or a"* ae"'e"t thereto, "less acco&a"ie' b* a certificate of athorit*isse' b* the ;o"etar* Boar', "'er its seal. Sch certificate shall "ot be isse' "less the;o"etar* Boar' is satisfie' fro the e$i'e"ce sbitte' to it/

19.1. That all re+iree"ts of e@isti"! la:s a"' re!latio"s to e"!a!e i" the bsi"essfor :hich the a&&lica"t is &ro&ose' to be i"cor&orate' ha$e bee" co&lie' :ith

19.2. That the &blic i"terest a"' eco"oic co"'itio"s, both !e"eral a"' local, ?stif*the athori#atio" a"'

19.-. That the ao"t of ca&ital, the fi"a"ci"!, or!a"i#atio", 'irectio" a"'a'i"istratio", as :ell as the i"te!rit* a"' res&o"sibilit* of the or!a"i#ers a"'

a'i"istrators reaso"abl* assre the safet* of 'e&osits a"' the &blic i"terest.

The Secrities a"' E@cha"!e Coissio" shall "ot re!ister the b*la:s of a"* ba"%, ora"* ae"'e"t thereto, "less acco&a"ie' b* a certificate of athorit* fro the Ba"!%oSe"tral.

SEC. 1. Board of Directors.

The &ro$isio"s of the Cor&oratio" Co'e to the co"trar* "ot:ithsta"'i"!, there shall beat least fi$e (), a"' a a@i of fiftee" (1) ebers of the boar' or 'irectors of a ba"%,t:o (2) of :ho shall be i"'e&e"'e"t 'irectors. A" "inde$endent director" shall ea" a &erso"

other tha" a" officer or e&lo*ee of the ba"%, its sbsi'iaries or affiliates or relate' i"terests.No"Fili&i"o citi#e"s a* becoe ebers of the boar' of 'irectors of a ba"% to the e@te"t ofthe forei!" &artici&atio" i" the e+it* of sai' ba"%. The eeti"!s of the boar' of 'irectors a*be co"'cte' thro!h o'er" tech"olo!ies sch as, bt "ot liite' to, teleco"fere"ci"! a"'$i'eoco"fere"ci"!.

SEC. 17. 1it and Pro$er #le.

To ai"tai" the +alit* of ba"% a"a!ee"t a"' affor' better &rotectio" to 'e&ositorsa"' the &blic i" !e"eral the ;o"etar* Boar' shall &rescribe, &ass &o" a"' re$ie: the+alificatio"s a"' 'is+alificatio"s of i"'i$i'als electe' or a&&oi"te' ba"% 'irectors or officers

a"' 'is+alif* those fo"' "fit. After 'e "otice to the boar' of 'irectors of the ba"%, the;o"etar* Boar' a* 'is+alif*, ss&e"' or reo$e a"* ba"% 'irector or officer :ho coitsor oits a" act :hich re"'er hi "fit for the &ositio". I" 'eteri"i"! :hether a" i"'i$i'al isfit a"' &ro&er to hol' the &ositio" of a 'irector or officer of a ba"%, re!ar' shall be !i$e" to hisi"te!rit*, e@&erie"ce, e'catio", trai"i"!, a"' co&ete"ce.

SEC. 14. Directors of 4erged or Consolidated Banks.

I" the case of a ba"% er!er or co"soli'atio", the "ber of 'irectors shall "ot e@cee't:e"t*o"e (21).

SEC. 18. Co&$ensation and Other Benefits of Directors and Officers.

To &rotect the fi"'s of 'e&ositors a"' cre'itors the ;o"etar* Boar' a* re!late the&a*e"t b* the bar% to its 'irectors a"' officers of co&e"satio", allo:a"ce, fees, bo"ses,stoc% o&tio"s, &rofit shari"! a"' fri"!e be"efits o"l* i" e@ce&tio"al cases a"' :he" thecircsta"ces :arra"t, sch as bt "ot liite' to the follo:i"!/

18.1. Ghe" a ba"% is "'er co&trollershi& or co"ser$atorshi& or18.2. Ghe" a ba"% is fo"' b* the ;o"etar* Boar' to be co"'cti"! bsi"ess i" a"

"safe or "so"' a""er or


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;o"etar* Boar'. Allie' e"ter&rises a* either be fi"a"cial or "o"fi"a"cial.E@ce&t as the ;o"etar* Boar' a* other:ise &rescribe/

29.1. The total i"$este"t i" e+ities of allie' a"' "o"allie' e"ter&rises shall "ote@cee' fift* &erce"t (6) of the "et :orth of the ba"% a"'

29.2. The e+it* i"$este"t i" a"* o"e e"ter&rise, :hether allie' or "o"allie', shall "ote@cee' t:e"t*fi$e &erce"t (2) of the "et :orth of the ba"%.

As se' i" this Act, net worth! shall ea" the total of the "i&aire' &ai'i" ca&itali"cl'i"! &ai'i" sr&ls, retai"e' ear"i"!s a"' "'i$i'e' &rofit, "et of $alatio" reser$es a"'other a'?ste"ts as a* be re+ire' b* the Ba"!%o Se"tral. The ac+isitio" of sch e+it* ore+ities is sb?ect to the &rior a&&ro$al of the ;o"etar* Boar' :hich shall &rol!atea&&ro&riate !i'eli"es to !o$er" sch i"$este"ts. cha" robles $irtal la: librar* SEC.

2. /)#ity 'n%est&ents of a 6ni%ersal Bank in 1inancial llied /nter$rises.

A "i$ersal ba"% ca" o:" & to o"e h"'re' &erce"t (166) of the e+it* i" a thriftba"%, a rral ba"% or a fi"a"cial allie' e"ter&rise. A &blicl*liste' "i$ersal or coercial ba"%a* o:" & to o"e h"'re' &erce"t (166) of the $oti"! stoc% of o"l* o"e other "i$ersal or

coercial ba"%.

SEC. 27. /)#ity 'n%est&ents of a 6ni%ersal Bank in ,on*1inancial llied /nter$rises.

A "i$ersal ba"% a* o:" & to o"e h"'re' &erce"t (166) of the e+it* i" a "o"fi"a"cial allie' e"ter&rise.

SEC. 24. /)#ity 'n%est&ents of a 6ni%ersal Bank in ,on*llied /nter$rises.

The e+it* i"$este"t of a "i$ersal ba"%, or of its :holl* or a?orit*o:"e'sbsi'iaries, i" a si"!le "o"allie' e"ter&rise shall "ot e@cee' thirt*fi$e &erce"t (-) of the

total e+it* i" that e"ter&rise "or shall it e@cee' thirt*fi$e &erce"t (-) of the $oti"! stoc% i"that e"ter&rise.

SEC. 28. /)#ity 'n%est&ents in #asi*Banks.

To &roote co&etiti$e co"'itio"s i" fi"a"cial ar%ets, the ;o"etar* Boar' a* frtherliit to fort* &erce"t (96) e+it* i"$este"ts of "i$ersal ba"%s i" +asiba"%s. This rleshall also a&&l* i" the case of coercial ba"%s.

Article II. O&eratio"s Of Coercial Ba"%s

SEC. 25. Powers of a Co&&ercial Bank.

A coercial ba"% shall ha$e, i" a''itio" to the !e"eral &o:ers i"ci'e"t tocor&oratio"s, all sch &o:ers as a* be "ecessar* to carr* o" the bsi"ess of coercialba"%i"! sch as acce&ti"! 'rafts a"' issi"! letters of cre'it 'isco"ti"! a"' "e!otiati"!&roissor* "otes, 'rafts, bills of e@cha"!e, a"' other e$i'e"ces of 'ebt acce&ti"! or creati"!'ea"' 'e&osits recei$i"! other t*&es of 'e&osits a"' 'e&osit sbstittes b*i"! a"' selli"!forei!" e@cha"!e a"' !ol' or sil$er bllio" ac+iri"! ar%etable bo"'s a"' other 'ebtsecrities a"' e@te"'i"! cre'it, sb?ect to sch rles as the ;o"etar* Boar' a* &rol!ate.These rles a* i"cl'e the 'eteri"atio" of bo"'s a"' other 'ebt secrities eli!ible fori"$este"t, the atrities a"' a!!re!ate ao"t of sch i"$este"t.

SEC. -6. /)#ity 'n%est&ents of a Co&&ercial Bank.

A coercial ba"% a*, sb?ect to the co"'itio"s state' i" the sccee'i"! &ara!ra&hs,i"$est o"l* i" the e+ities of allie' e"ter&rises as a* be 'eteri"e' b* the ;o"etar* Boar'.

Allie' e"ter&rises a* either be fi"a"cial or "o"fi"a"cial. E@ce&t as the ;o"etar* Boar' a*other:ise &rescribe/

-6.1. The total i"$este"t i" e+ities of allie' e"ter&rises shall "ot e@cee' thirt*fi$e&erce"t (-) of the "et :orth of the ba"% a"'


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-6.2. The e+it* i"$este"t i" a"* o"e e"ter&rise shall "ot e@cee' t:e"t*fi$e &erce"t(2) of tile "et :orth of the ba"%.

The ac+isitio" of sch e+it* or e+ities is sb?ect to the &rior a&&ro$al of the ;o"etar*Boar' :hich shall &rol!ate a&&ro&riate !i'eli"es to !o$er" sch i"$este"t.

SEC. -1. /)#ity 'n%est&ents of a Co&&ercial Bank in 1inancial llied /nter$rises.

A coercial ba"% a* o:" & to o"e h"'re' &erce"t (166) of the e+it* of a thriftba"% or a rral ba"%. Ghere the e+it* i"$este"t of a coercial ba"% is i" other fi"a"cialallie' e"ter&rises, i"cl'i"! a"other coercial ba"%, sch i"$este"t shall reai" a i"orit*hol'i"! i" that e"ter&rise.

SEC. -2. /)#ity 'n%est&ents of a Co&&ercial Bank in ,on*1inancial llied /nter$rises.

A coercial ba"% a* o:" & to o"e h"'re' &erce"t (166) of the e+it* i" a "o"fi"a"cial allie' e"ter&rise.

Article III. ro$isio"s A&&licable To All Ba"%s, asiBa"%s, A"' Trst E"tities

SEC. --.cce$tance of De&and De$osits.

A ba"% other tha" a "i$ersal or coercial ba"% ca""ot acce&t or create 'ea"''e&osits e@ce&t &o" &rior a&&ro$al of, a"' sb?ect to sch co"'itio"s a"' rles as a* be&rescribe' b* the ;o"etar* Boar'.

SEC. -9. isk*Based Ca$ital.

The ;o"etar* Boar' shall &rescribe the i"i ratio :hich the "et :orth of a ba"%st bear to its total ris% assets :hich a* i"cl'e co"ti"!e"t acco"ts. For &r&oses of this

Sectio", the ;o"etar* Boar' a* re+ire sch ratio be 'eteri"e' o" the basis of the "et:orth a"' ris% assets of a ba"% a"' its sbsi'iaries, fi"a"cial or other:ise, as :ell as &rescribethe co&ositio" a"' the a""er of 'eteri"i"! the "et :orth a"' total ris% assets of ba"%sa"' their sbsi'iaries/ Pro%ided, That i" the e@ercise of this athorit*, the ;o"etar* Boar'shall, to the e@te"t feasible co"for to i"ter"atio"all* acce&te' sta"'ar's, i"cl'i"! those ofthe Ba"% for I"ter"atio"al Settlee"ts (BIS), relati"! to ris%base' ca&ital re+iree"ts/Pro%ided f#rtherThat it a* alter or ss&e"' co&lia"ce :ith sch ratio :he"e$er "ecessar*for a a@i &erio' of o"e (1) *ear/ Pro%ided finally That sch ratio shall be a&&lie'"iforl* to ba"%s of the sae cate!or*. I" case a ba"% 'oes "ot co&l* :ith the &rescribe'i"i ratio, the ;o"etar* Boar' a* liit or &rohibit the 'istribtio" of "et &rofits b* schba"% a"' a* re+ire that &art or all of the "et &rofits be se' to i"crease the ca&ital acco"ts

of the ba"% "til the i"i re+iree"t has bee" et The ;o"etar* Boar' a*,frtherore, restrict or &rohibit the ac+isitio" of a?or assets a"' the a%i"! of "e:i"$este"ts b* the ba"%, :ith the e@ce&tio" of &rchases of rea'il* ar%etable e$i'e"ces ofi"'ebte'"ess of the 3e&blic of the hili&&i"es a"' of the Ba"!%o Se"tral a"' a"* othere$i'e"ces of i"'ebte'"ess or obli!atio"s the ser$ici"! a"' re&a*e"t of :hich are fll*!ara"tee' b* the 3e&blic of the hili&&i"es, "til the i"i re+ire' ca&ital ratio hasbee" restore'. I" case of a ba"% er!er or co"soli'atio", or :he" a ba"% is "'errehabilitatio" "'er a &ro!ra a&&ro$e' b* the Ba"!%o Se"tral, ;o"etar* Boar' a*te&oraril* relie$e the sr$i$i"! ba"%, co"soli'ate' ba"%, or co"stite"t ba"% or cor&oratio"s"'er rehabilitatio" fro fll co&lia"ce :ith the re+ire' ca&ital ratio "'er sch co"'itio"sas it a* &rescribe. Before the effecti$it* of rles :hich the ;o"etar* Boar' is athori#e' to

&rescribe "'er this &ro$isio", Sectio" 22 of the >e"eral Ba"%i"! Act, as ae"'e', Sectio" 5of the Thrift Ba"%s Act, a"' all &erti"e"t rles isse' &rsa"t thereto, shall co"ti"e to be i"force.

SEC. -. Li&it on Loans Credit cco&&odations and G#arantees. *

-.1. E@ce&t as the ;o"etar* Boar' a* other:ise &rescribe for reaso"s of "atio"al i"terest,the total ao"t of loa"s, cre'it accoo'atio"s a"' !ara"tees as a* be 'efi"e' b*the ;o"etar* Boar' that a* be e@te"'e' b* a ba"% to a"* &erso", &art"ershi&,associatio", cor&oratio" or other e"tit* shall at "o tie e@cee' t:e"t* &erce"t (26) of


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the "et :orth of sch ba"%. The basis for 'eteri"i"! co&lia"ce :ith si"!le borro:erliit is the total cre'it coite"t of the ba"% to the borro:er.

-.2. 0"less the ;o"etar* Boar' &rescribes other:ise, the total ao"t of loa"s, cre'itaccoo'atio"s a"' !ara"tees &rescribe' i" the &rece'i"! &ara!ra&h a* bei"crease' b* a" a''itio"al te" &erce"t (16) of the "et :orth of sch ba"% &ro$i'e' thea''itio"al liabilities of a"* borro:er are a'e+atel* secre' b* trst recei&ts, shi&&i"!'oce"ts, :arehose recei&ts or other siilar 'oce"ts tra"sferri"! or secri"! title

co$eri"! rea'il* ar%etable, "o"&erishable !oo's :hich st be fll* co$ere' b*i"sra"ce.

-.-. The abo$e &rescribe' ceili"!s shall i"cl'e/(a) the 'irect liabilit* of the a%er or acce&tor of &a&er 'isco"te' :ith or sol' to sch

ba"% a"' the liabilit* of a !e"eral e"'orser, 'ra:er or !ara"tor :ho obtai"s a loa"or other cre'it accoo'atio" fro or 'isco"ts &a&er :ith or sells &a&ers to schba"%

(b) i" the case of a" i"'i$i'al :ho o:"s or co"trols a a?orit* i"terest i" a cor&oratio",&art"ershi&, associatio" or a"* other e"tit*, the liabilities of sai' e"tities to schba"%

(c) i" the case of a cor&oratio", all liabilities to sch ba"% of all sbsi'iaries i" :hich

sch cor&oratio" o:"s or co"trols a a?orit* i"terest a"' (') i" the case of a&art"ershi&, associatio" or other e"tit*, the liabilities of the ebers thereof to schba"%.

-.9. E$e" if a &are"t cor&oratio", &art"ershi&, associatio", e"tit* or a" i"'i$i'al :ho o:"s orco"trols a a?orit* i"terest i" sch e"tities has "o liabilit* to the ba"%, the ;o"etar*Boar' a* &rescribe the cobi"atio" of the liabilities of sbsi'iar* cor&oratio"s orebers of the &art"ershi&, associatio", e"tit* or sch i"'i$i'al "'er certai"circsta"ces, i"cl'i"! bt "ot liite' to, a"* of the follo:i"! sitatio"s/(a) the &are"t cor&oratio", &art"ershi&, associatio", e"tit* or i"'i$i'al !ara"tees the

re&a*e"t of the liabilities(b) the liabilities :ere i"crre' for the accoo'atio" of the &are"t cor&oratio" or

a"other sbsi'iar* or of the &art"ershi& or associatio" or e"tit* or sch i"'i$i'al or(c) the sbsi'iaries tho!h se&arate e"tities o&erate erel* as 'e&arte"ts or 'i$isio"s

of a si"!le e"tit*.-.. For &r&oses of this Sectio", loa"s, other cre'it accoo'atio"s a"' !ara"tees shall

e@cl'e/(a) loa"s a"' other cre'it accoo'atio"s secre' b* obli!atio"s of the Ba"!%o

Se"tral or of the hili&&i"e >o$er"e"t(b) loa"s a"' other cre'it accoo'atio"s fll* !ara"tee' b* the !o$er"e"t as to

the &a*e"t of &ri"ci&al a"' i"terest(c) loa"s a"' other cre'it accoo'atio"s co$ere' b* assi!"e"t of 'e&osits

ai"tai"e' i" the le"'i"! ba"% a"' hel' i" the hili&&i"es

(') loa"s, cre'it accoo'atio"s a"' acce&ta"ces "'er letters of cre'it to the e@te"tco$ere' b* ar!i" 'e&osits a"'

(e) other loa"s or cre'it accoo'atio"s :hich the ;o"etar* Boar' a* fro tie totie, s&ecif* as "o"ris% ites.

-.7. Loa"s a"' other cre'it accoo'atio"s, 'e&osits ai"tai"e' :ith, a"' sal !ara"teesb* a ba"% to a"* other ba"% or "o"ba"% e"tit*, :hether locall* or abroa', shall besb?ect to the liits as herei" &rescribe'.

-.4. Certai" t*&es of co"ti"!e"t acco"ts of borro:ers a* be i"cl'e' ao"! those sb?ectto these &rescribe' liits as a* be 'eteri"e' b* the ;o"etar* Boar'.

SEC. -7. estriction on Bank /$os#re to Directors Officers (tockholders and Their elated

'nterests.

No 'irector or officer of a"* ba"% shall, 'irectl* or i"'irectl*, for hiself or as there&rese"tati$e or a!e"t of others, borro: fro sch ba"% "or shall he becoe a !ara"tor,e"'orser or sret* for loa"s fro sch ba"% to others, or i" a"* a""er be a" obli!or or i"cra"* co"tractal liabilit* to the ba"% e@ce&t :ith the :ritte" a&&ro$al of the a?orit* of all the'irectors of the ba"%, e@cl'i"! the 'irector co"cer"e'/ Pro%ided, That sch :ritte" a&&ro$alshall "ot be re+ire' for loa"s, other cre'it accoo'atio"s a"' a'$a"ces !ra"te' to officers"'er a fri"!e be"efit &la" a&&ro$e' b* the Ba"!%o Se"tral. The re+ire' a&&ro$al shall bee"tere' &o" the recor's of the ba"% a"' a co&* of sch e"tr* shall be tra"sitte' forth:ith to


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the a&&ro&riate s&er$isi"! a"' e@ai"i"! 'e&arte"t of the Ba"!%o Se"tral.Deali"!s of a ba"% :ith a"* of its 'irectors, officers or stoc%hol'ers a"' their relate' i"terestsshall be &o" ters "ot less fa$orable to the ba"% tha" those offere' to others.

After 'e "otice to the boar' of 'irectors of the ba"%, the office of a"* ba"% 'irector orofficer :ho $iolates the &ro$isio"s of this Sectio" a* be 'eclare' $aca"t a"' the 'irector orofficer shall be sb?ect to the &e"al &ro$isio"s of the Ne: Ce"tral Ba"% Act. The ;o"etar*Boar' a* re!late the ao"t of loa"s, cre'it accoo'atio"s a"' !ara"tees that a* be

e@te"'e', 'irectl* or i"'irectl*, b* a ba"% to its 'irectors, officers, stoc%hol'ers a"' their relate'i"terests, as :ell as i"$este"ts of sch ba"% i" e"ter&rises o:"e' or co"trolle' b* sai''irectors, officers, stoc%hol'ers a"' their relate' i"terests.


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accoo'atio" !ra"te' o" the basis of sai' statee"ts a"' shall ha$e the ri!ht to 'ea"'ie'iate re&a*e"t or li+i'atio" of the obli!atio". I" forlati"! rles a"' re!latio"s "'erthis Sectio", the ;o"etar* Boar' shall reco!"i#e the &ecliar characteristics of icro fi"a"ci"!,sch as cash flo:base' le"'i"! to the basic sectors that are "ot co$ere' b* tra'itio"alcollateral.

SEC. 91. 6nsec#red Loans or Other Credit cco&&odations.

The ;o"etar* Boar' is hereb* athori#e' to isse sch re!latio"s as it a* 'ee"ecessar* :ith res&ect to "secre' loa"s or other cre'it accoo'atio"s that a* be!ra"te' b* ba"%s.

SEC. 92. Other (ec#rity e)#ire&ents for Bank Credits.

The ;o"etar* Boar' a*, b* re!latio", &rescribe frther secrit* re+iree"ts to:hich the $arios t*&es of ba"% cre'its shall be sb?ect, a"', i" accor'a"ce :ith the athorit*!ra"te' to it i" Sectio" 167 of the Ne: Ce"tral Ba"% Act, the Boar' a* b* re!latio", re'cethe a@i ratios establishe' i" Sectio"s -7 a"' -4 of this Act, or, i" s&ecial cases, i"creasethe a@i ratios establishe' therei".

SEC. 9-.#thority to Prescri+e Ter&s and Conditions of Loans and Other Credit cco&&odations.

The ;o"etar* Boar', a*, siilarl* i" accor'a"ce :ith the athorit* !ra"te' to it i"Sectio" 167 of the Ne: Ce"tral Ba"% Act, a"' ta%i"! i"to acco"t the re+iree"ts of theeco"o* for the effecti$e tili#atio" of lo"!ter f"'s, &rescribe the atrities, as :ell asrelate' ters a"' co"'itio"s for $arios t*&es of ba"% loa"s a"' other cre'it accoo'atio"s.

A"* cha"!e b* the Boar' i" the a@i atrities, as :ell as relate' ters a"' co"'itio"sfor $arios t*&es of ba"% loa"s a"' other cre'it accoo'atio"s. A"* cha"!e b* the Boar' i"the a@i atrities shall a&&l* o"l* to loa"s a"' other cre'it accoo'atio"s a'e afterthe 'ate of sch actio".

The ;o"etar* Boar' shall re!late the i"terest i&ose' o" icro fi"a"ce borro:ers b*le"'i"! i"$estors a"' siilar le"'ers sch as, bt "ot liite' to, the "co"scio"able rates ofi"terest collecte' o" salar* loa"s a"' siilar cre'it accoo'atio"s.

SEC. 99.&orti3ation on Loans and Other Credit cco&&odations.

The aorti#atio" sche'le of ba"% loa"s a"' other cre'it accoo'atio"s shall bea'a&te' to the "atre of the o&eratio"s to be fi"a"ce'. I" case of loa"s a"' other cre'itaccoo'atio"s :ith atrities of ore tha" fi$e () *ears, &ro$isio"s st be a'e for&erio'ic aorti#atio" &a*e"ts, bt sch &a*e"ts st be a'e at least a""all*/ Pro%idedhowe%erThat :he" the borro:e' f"'s are to be se' for &r&oses :hich 'o "ot i"itiall*

&ro'ce re$e"es a'e+ate for re!lar aorti#atio" &a*e"ts therefro, the ba"% a* &eritthe i"itial aorti#atio" &a*e"t to be 'eferre' "til sch tie as sai' re$e"es are sfficie"tfor sch &r&ose, bt i" "o case shall the i"itial aorti#atio" 'ate be later tha" fi$e () *earsfro the 'ate o" :hich the loa" or other cre'it accoo'atio" is !ra"te'. I" case of loa"s a"'other cre'it accoo'atio"s to icro fi"a"ce sectors, the sche'le of loa" aorti#atio" shallta%e i"to co"si'eratio" the &ro?ecte' cash flo: of the borro:er a"' a'o&t this i"to the tersa"' co"'itio"s forlate' b* ba"%s.

SEC. 9. Pre$ay&ent of Loans and Other Credit cco&&odations.

A borro:er a* at a"* tie &rior to the a!ree' atrit* 'ate &re&a*, i" :hole or i" &art,

the "&ai' bala"ce of a"* ba"% loa" a"' other cre'it accoo'atio", sb?ect to schreaso"able ters a"' co"'itio"s as a* be a!ree' &o" bet:ee" the ba"% a"' its borro:er.

SEC. 97. De%elo$&ent ssistance 'ncenti%es.

The Ba"!%o Se"tral shall &ro$i'e i"ce"ti$es to ba"%s :hich, :ithot !o$er"e"t!ara"tee, e@te"' loa"s to fi"a"ce e'catio"al i"stittio"s coo&erati$es, hos&itals a"' othere'ical ser$ices, sociali#e' or lo:cost hosi"!, local !o$er"e"t "its a"' other acti$ities:ith social co"te"t.


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2.1. Sch as shall be ort!a!e' to it i" !oo' faith b* :a* of secrit* for 'ebts2.2. Sch as shall be co"$e*e' to it i" satisfactio" of 'ebts &re$iosl* co"tracte' i" the

corse of its 'eali"!s or2.-. Sch as it shall &rchase at sales "'er ?'!e"ts, 'ecrees, ort!a!es, or trst

'ee's hel' b* it a"' sch as it shall &rchase to secre 'ebts 'e it.

A"* real &ro&ert* ac+ire' or hel' "'er the circsta"ces e"erate' i" the abo$e&ara!ra&h shall be 'is&ose' of b* the ba"% :ithi" a &erio' of fi$e () *ears or as a* be

&rescribe' b* the ;o"etar* Boar'/ ro$i'e', ho:e$er, That the ba"% a*, after sai' &erio',co"ti"e to hol' the &ro&ert* for its o:" se, sb?ect to the liitatio"s of the &rece'i"! Sectio".

SEC. -. Other Ba"%i"! Ser$ices.

I" a''itio" to the o&eratio"s s&ecificall* athori#e' i" this Act, a ba"% a* &erfor thefollo:i"! ser$ices/

-.1. 3ecei$e i" csto'* f"'s, 'oce"ts a"' $alable ob?ects-.2. Act as fi"a"cial a!e"t a"' b* a"' sell, b* or'er of a"' for the acco"t of their

cstoers, shares, e$i'e"ces of i"'ebte'"ess a"' all t*&es of secrities

-.-. ;a%e collectio"s a"' &a*e"ts for the acco"t of others a"' &erfor sch otherser$ices for their cstoers as are "ot i"co&atible :ith ba"%i"! bsi"ess

-.9. 0&o" &rior a&&ro$al of the ;o"etar* Boar', act as a"a!i"! a!e"t, a'$iser,co"slta"t or a'i"istrator of i"$este"t a"a!ee"ta'$isor*co"slta"c*acco"ts a"'

-.. 3e"t ot safet* 'e&osit bo@es.

The ba"% shall &erfor the ser$ices &eritte' "'er Sbsectio"s -.1., -.2., -.-. a"'-.9. as 'e&ositar* or as a" a!e"t. Accor'i"!l*, it shall %ee& the f"'s, secrities a"' othereffects :hich it recei$es 'l* se&arate fro the ba"%Hs o:" assets a"' liabilities/

The ;o"etar* Boar' a* re!late the o&eratio"s athori#e' b* this Sectio" i" or'er toe"sre that sch o&eratio"s 'o "ot e"'a"!er the i"terests of the 'e&ositors a"' other cre'itorsof the ba"%.

I" case a ba"% or +asiba"% "otifies the Ba"!%o Se"tral or &blicl* a""o"ces a ba"%holi'a*, or i" a"* a""er ss&e"'s the &a*e"t of its 'e&osit liabilities co"ti"osl* for oretha" thirt* (-6) 'a*s, the ;o"etar* Boar' a* saril* a"' :ithot "ee' for &rior heari"!close sch ba"%i"! i"stittio" a"' &lace it "'er recei$ershi& of the hili&&i"e De&ositI"sra"ce Cor&oratio".

SEC. 9. Prohi+ition to ct as 'ns#rer.

A ba"% shall "ot 'irectl* e"!a!e i" i"sra"ce bsi"ess as the i"srer.

SEC. . rohibite' Tra"sactio"s.

.1. No 'irector, officer, e&lo*ee, or a!e"t of a"* ba"% shall (a) ;a%e false e"tries i" a"* ba"% re&ort or statee"t or &artici&ate i" a"*

fra'le"t tra"sactio", thereb* affecti"! the fi"a"cial i"terest of, or casi"!'aa!e to, the ba"% or a"* &erso"

(b) Githot or'er of a cort of co&ete"t ?ris'ictio", 'isclose to a"*"athori#e' &erso" a"* i"foratio" relati$e to the f"'s or &ro&erties i" the

csto'* of the ba"% belo"!i"! to &ri$ate i"'i$i'als, cor&oratio"s, or a"*other e"tit*/ ro$i'e', That :ith res&ect to ba"% 'e&osits, the &ro$isio"s ofe@isti"! la:s shall &re$ail

(c) Acce&t !ifts, fees, or coissio"s or a"* other for of re"eratio" i"co""ectio" :ith the a&&ro$al of a loa" or other cre'it accoo'atio" frosai' ba"%

(d) O$er$ale or ai' i" o$er$ali"! a"* secrit* for the &r&ose of i"fle"ci"! i"a"* :a* the actio"s of the ba"% or a"* ba"% or

(e) Otsorce i"here"t ba"%i"! f"ctio"s.


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.2. No borro:er of a ba"% shall

(a) Fra'le"tl* o$er$ale &ro&ert* offere' as secrit* for a loa" or other cre'itaccoo'atio" fro the ba"%

(b) Fr"ish false or a%e isre&rese"tatio" or s&&ressio" of aterial facts forthe &r&ose of obtai"i"!, re"e:i"!, or i"creasi"! a loa" or other cre'itaccoo'atio" or e@te"'i"! the &erio' thereof

(c) Atte&t to 'efra' the sai' ba"% i" the e$e"t of a cort actio" to reco$er a

loa" or other cre'it accoo'atio" or(d) Offer a"* 'irector, officer, e&lo*ee or a!e"t of a ba"% a"* !ift, fee,

coissio", or a"* other for of co&e"satio" i" or'er to i"fle"ce sch&erso"s i"to a&&ro$i"! a loa" or other cre'it accoo'atio" a&&licatio".

.-. No e@ai"er, officer or e&lo*ee of the Ba"!%o Se"tral or of a"* 'e&arte"t,brea, office, bra"ch or a!e"c* of the >o$er"e"t that is assi!"e' tos&er$ise, e@ai"e, assist or re"'er tech"ical assista"ce to a"* ba"% shallcoit a"* of the acts e"erate' i" this Sectio" or ai' i" the coissio" of thesae.

The a%i"! of false re&orts or isre&rese"tatio" or s&&ressio" ofaterial facts b* &erso""el of the Ba"!%o Se"tal "! ili&i"as shall be sb?ect tothe a'i"istrati$e a"' crii"al sa"ctio"s &ro$i'e' "'er the Ne: Ce"tral Ba"%

Act.

.9. Co"siste"t :ith the &ro$isio"s of 3e&blic Act No. 196, other:ise %"o:" as theBa"%s Secrec* La:, "o ba"% shall e&lo* casal or "o" re!lar &erso""el or toole"!th* &robatio"ar* &erso""el i" the co"'ct of its bsi"ess i"$ol$i"! ba"%'e&osits.

SEC. 7. Cond#cting B#siness in an 6nsafe or 6nso#nd 4anner

I" 'eteri"i"! :hether a &articlar act or oissio", :hich is "ot other:ise &rohibite' b*a"* la:, rle or re!latio" affecti"! ba"%s, +asiba"%s or trst e"tities, a* be 'eee' asco"'cti"! bsi"ess i" a" "safe or "so"' a""er for &r&oses of this Sectio", the;o"etar* Boar' shall co"si'er a"* of the follo:i"! circsta"ces/

56.1. The act or oissio" has reslte' or a* reslt i" aterial loss or 'aa!e, orab"oral ris% or 'a"!er to the safet*, stabilit*, li+i'it* or sol$e"c* of thei"stittio"

56.2. The act or oissio" has reslte' or a* reslt i" aterial loss or 'aa!e orab"oral ris% to the i"stittio"Hs 'e&ositors, cre'itors, i"$estors, stoc%hol'ers or

to the Ba"!%o Se"tral or to the &blic i" !e"eral56.3. The act or oissio" has case' a"* "'e i"?r*, or has !i$e" a"* ":arra"te'

be"efits, a'$a"ta!e or &refere"ce to the ba"% or a"* &art* i" the 'ischar!e b*the 'irector or officer of his 'ties a"' res&o"sibilities thro!h a"ifest &artialit*,e$i'e"t ba' faith or !ross i"e@csable "e!li!e"ce or

56.4. The act or oissio" i"$ol$es e"teri"! i"to a"* co"tract or tra"sactio" a"ifestl*a"' !rossl* 'isa'$a"ta!eos to the ba"%, +asiba"% or trst e"tit*, :hether or"ot the 'irector or officer &rofite' or :ill &rofit thereb*.

Ghe"e$er a ba"%, +asiba"% or trst e"tit* &ersists i" co"'cti"! its bsi"ess i"a" "safe or "so"' a""er, the ;o"etar* Boar' a*, :ithot &re?'ice to the

a'i"istrati$e sa"ctio"s &ro$i'e' i" Sectio" -4 of the Ne: Ce"tral Ba"% Act, ta%eactio" "'er Sectio" -6 of the sae Act a"'or ie'iatel* e@cl'e the erri"! ba"%fro cleari"!, the &ro$isio"s of la: to the co"trar* "ot:ithsta"'i"!.

SEC. 4. Prohi+ition on Di%idend Declaration.

No ba"% or +asiba"% shall 'eclare 'i$i'e"'s, if at the tie of 'eclaratio"/

57.1. Its cleari"! acco"t :ith the Ba"!%o Se"tral is o$er'ra:" or


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57.2. It is 'eficie"t i" the re+ire' li+i'it* floor for !o$er"e"t 'e&osits for fi$e() or ore co"secti$e 'a*s, or,

57.3. It 'oes "ot co&l* :ith the li+i'it* sta"'ar'sratios &rescribe' b* theBa"!%o Se"tral for &r&oses of 'eteri"i"! f"'s a$ailable for 'i$i'e"''eclaratio" or,

57.4. It has coitte' a a?or $iolatio" as a* be 'eteri"e' b* the Ba"!%oSe"tral.

SEC. 8. 'nde$endent #ditor.

The ;o"etar* Boar' a* re+ire a ba"%, +asiba"% or trst e"tit* to e"!a!e theser$ices of a" i"'e&e"'e"t a'itor to be chose" b* the ba"%, +asiba"% or trst e"tit*co"cer"e' fro a list of certifie' &blic acco"ta"ts acce&table to the ;o"etar* Boar'. Theter of the e"!a!ee"t shall be as &rescribe' b* the ;o"etar* Boar' :hich a* either be o"a co"ti"i"! basis :here the a'itor shall act as resi'e"t e@ai"er, or o" the basis of s&eciale"!a!ee"ts bt i" a"* case, the i"'e&e"'e"t a'itor shall be res&o"sible to the ba"%s,+asiba"%s or trst e"tit*s boar' of 'irectors. A co&* of the re&ort shall be fr"ishe' to the;o"etar* Boar'. The ;o"etar* Boar' a* also 'irect the boar' of 'irectors of a ba"%, +asiba"%, trst* e"tit* a"'or the i"'i$i'al ebers thereof to co"'ct, either &erso"all* or b* a

coittee create' b* the boar', a" a""al bala"ce sheet a'it of the ba"%, +asiba"% ortrst e"tit* to re$ie: the i"ter"al a'it a"' co"trol s*ste of the ba"%, +asiba"% or trst e"tit*a"' to sbit a re&ort of sch a'it.

SEC. 5. #thority to eg#late /lectronic Transactions.

The Ba"!%o Se"tral shall ha$e fll athorit* to re!late the se of electro"ic 'e$ices,sch as co&ters, a"' &rocesses for recor'i"!, stori"! a"' tra"sitti"! i"foratio" or 'ata i"co""ectio" :ith the o&eratio"s of a ba"% +asiba"% or trst e"tit*, i"cl'i"! the 'eli$er* ofser$ices a"' &ro'cts to cstoers b* sch e"tit*.

SEC. 76. 1inancial (tate&ents.

E$er* ba"%, +asiba"% or trst e"tit* shall sbit to the a&&ro&riate s&er$isi"! a"'e@ai"i"! 'e&arte"t of the Ba"!%o Se"tral fi"a"cial statee"ts i" sch for a"' fre+e"c*as a* be &rescribe' b* the Ba"!%o Se"tral. Sch statee"ts, :hich shall be as of a s&ecific'ate 'esi!"ate' b* the Ba"!%o Se"tral, shall sho: thee actal fi"a"cial co"'itio" of thei"stittio" sbitti"! the statee"t, a"' of its bra"ches, offices, sbsi'iaries a"' affiliates,i"cl'i"! the reslts of its o&eratio"s, a"' shall co"tai" sch i"foratio" as a* be re+ire' i"Ba"!%o Se"tral re!latio"s.

SEC 71. P#+lication of 1inancial (tate&ents.

E$er* ba"%, +asiba"% or trst e"tit*, shall &blish a statee"t of its fi"a"cial co"'itio",i"cl'i"! those of its sbsi'iaries a"' affiliates, i" sch ters "'ersta"'able to the la*a"a"' i" sch fre+e"c* as a* be &rescribe' Ba"!%o Se"tral, i" E"!lish or Fili&i"o, at leasto"ce e$er* +arter i" a "e:s&a&er of !e"eral circlatio" i" the cit* or &ro$i"ce :here the&ri"ci&al office, i" the case of a 'oestic i"stittio" or the &ri"ci&al bra"ch or office i" the caseof a forei!" ba"%, is locate', bt if "o "e:s&a&er is &blishe' i" the sae &ro$i"ce, the" i" a"e:s&a&er &blishe' i" ;etro ;a"ila or i" the "earest cit* or &ro$i"ce.

The Ba"!%o Se"tral a* b* re!latio" &rescribe the "e:s&a&er :here the statee"ts&rescribe' herei" shall be &blishe'.

The ;o"etar* Boar' a* allo: the &osti"! of the fi"a"cial statee"ts of a ba"%, +asiba"% or trst e"tit* i" &blic &laces it a* 'eteri"e, lie of the &blicatio" re+ire' i" the&rece'i"! &ara!ra&h, :he" :arra"te' b* the circsta"ces.

A''itio"all*, ba"%s shall a%e a$ailable to the &blic i" sch for a"' a""er as theBa"!%o Se"tral a* &rescribe the co&lete set of its a'ite' fi"a"cial statee"ts as :ell assch other rele$a"t i"foratio" i"cl'i"! those o" e"ter&rises a?orit*o:"e' or co"trolle' b*the ba"%, that :ill i"for the &blic of the tre fi"a"cial co"'itio" of a ba"% as of a"* !i$e"tie.


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I" &erio's of "atio"al a"'or local eer!e"c* or of ii"e"t &a"ic :hich 'irectl*threate" o"etar* a"' ba"%i"! stabilit*, the ;o"etar* Boar', b* a $ote of at least fi$e () of itsebers, i" s&ecial cases a"' &o" a&&licatio" of the ba"%, +asiba"% or trst e"tit*, a*allo: sch ba"%, +asiba"% or trst e"tit* to 'efer for a state' &erio' of tie the &blicatio" ofthe statee"t of fi"a"cial co"'itio" re+ire' herei".

SEC. 72. P#+lication of Ca$ital (tock.

A ba"%, +asiba"% or trst e"tit* i"cor&orate' "'er the la:s of the hili&&i"es shall"ot &blish the ao"t of its athori#e' or sbscribe' ca&ital stoc% :ithot i"'icati"! at thesae tie a"' :ith e+al &roi"e"ce, the ao"t of its ca&ital actall* &ai' &.

No bra"ch of a"* forei!" ba"% 'oi"! bsi"ess i" the hili&&i"es shall i" a"* :a*a""o"ce the ao"t of the ca&ital a"' sr&ls of its hea' office, or of the ba"% i" its e"tiret*:ithot i"'icati"! at the sae tie a"' :ith e+al &roi"e"ce the ao"t of the ca&ital, if a"*,'efi"itel* assi!"e' to sch bra"ch, sch fact shall be state' i", a"' shall for &art of the&blicatio".

SEC. 7-. (ettle&ent of Dis$#tes. The &ro$isio"s of a"* la: to the co"trar* "ot:ithsta"'i"!, the Ba"!%o Se"tral shall be

co"slte' b* other !o$er"e"t a!e"cies or i"stre"talities i" actio"s or &rocee'i"!s i"itiate'b* or bro!ht before the i"$ol$i"! co"tro$ersies i" ba"%s, +asiba"%s or trst e"tities arisi"!ot of a"' i"$ol$i"! relatio"s bet:ee" a"' ao"! their 'irectors, officers or stoc%hol'ers, as:ell as 'is&tes bet:ee" a"* or all of the a"' the ba"%, +asiba"% or trst e"tit* of :hichthe* are 'irectors, officers or stoc%hol'ers.

SEC. 79. 6na#thori3ed d%ertise&ent or B#siness e$resentation.

No &erso", associatio", or cor&oratio" "less 'l* athori#e' to e"!a!e i" the bsi"ess

of a ba"%, +asiba"%, trst e"tit*, or sa$i"!s a"' loa" associatio" as 'efi"e' i" this Act, orother ba"%i"! la:s, shall a'$ertise or hol' itself ot as bei"! e"!a!e' i" the bsi"ess of schba"%, +asiba"%, trst e"tit*, or associatio", or se i" co""ectio" :ith its bsi"ess title, the:or' or :or's ba"%,J ba"%i"!,J ba"%er,J +asiba"%,J +asiba"%i"!,J +asiba"%er,Jsa$i"!s a"' loa" associatio",J trst cor&oratio",J trst co&a"*J or :or's of siilar i&ortor tra"sact i" a"* a""er the bsi"ess of a"* sch ba"%, cor&oratio" or associatio".

SEC. 7. (er%ice 1ees.

The Ba"!%o Se"tral a* char!e e+itable rates, coissio"s or fees, as a* be

&rescribe' b* the ;o"etar* Boar' for s&er$isio", e@ai"atio" a"' other ser$ices :hich itre"'ers "'er this Act.

SEC. 77. Penalty for 9iolation of this ct.

0"less other:ise herei" &ro$i'e', the $iolatio" of a"* of the &ro$isio"s of this Act shallbe sb?ect to Sectio"s -9, -, -7 a"' -4 of the Ne: Ce"tral Ba"% Act. If the offe"'er is a'irector or officer of a ba"%, +asiba"% or trst e"tit*, the ;o"etar* Boar' a* also ss&e"'or reo$e sch 'irector or officer. If the $iolatio" is coitte' b* a cor&oratio", schcor&oratio" a* be 'issol$e' b* +o :arra"to &rocee'i"!s i"stitte' b* the Solicitor >e"eral.

PLACE


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Act/ ro$i'e', That this Sectio" shall also a&&l* to co"ser$atorshi& &rocee'i"!s of +asiba"%s.

CHAPTER VI

CESSATION OF BANKIN> B0SINESS

SEC. 78. 9ol#ntary Li)#idation.

I" case of $ol"tar* li+i'atio" of a"* ba"% or!a"i#e' "'er the la:s of the hili&&i"es,or of a"* bra"ch or office i" the hili&&i"es of a forei!" ba"%, :ritte" "otice of sch li+i'atio"shall be se"t to the ;o"etar* Boar' before sch li+i'atio" shall be se"t to the ;o"etar*Boar' before sch li+i'atio" is "'erta%e", a"' the ;o"etar* Boar' shall ha$e the ri!ht toi"ter$e"e a"' ta%e sch ste&s as a* be "ecessar* to &rotect the i"terests of cre'itors.

SEC. 75. ecei%ershi$ and 'n%ol#ntary Li)#idation.

The !ro"'s a"' &roce'res for &laci"! a ba"% "'er recei$ershi& or li+i'atio", as:ell as the &o:ers a"' 'ties of the recei$er or li+i'ator a&&oi"te' for the ba"% shall be!o$er"e' b* the &ro$isio"s of Sectio"s -6, -1, -2, a"' -- of the Ne: Ce"tral Ba"% Act/ro$i'e', That the &etitio"er or &lai"tiff files :ith the cler% or ?'!e of the cort i" :hich theactio" is &e"'i"! a bo"', e@ecte' i" fa$or of the Ba"!%o Se"tral, i" a" ao"t to be fi@e' b*the cort. This Sectio" shall also a&&l* to the e@te"t &ossible to the recei$ershi& a"'li+i'atio" &rocee'i"!s of +asiba"%s.

SEC. 46. Penalty for Transactions fter a Bank Beco&es 'nsol%ent.

A"* 'irector or officer of a"* ba"% 'eclare' i"sol$e"t or &lace' "'er recei$ershi& b*the ;o"etar* Boar' :ho refses to tr" o$er the ba"%s recor's a"' assets to the 'esi!"ate'recei$ers, or :ho ta&ers :ith ba"%s recor's, or :ho a&&ro&riates for hiself for a"other&art* or 'estro*s or cases the isa&&ro&riatio" a"' 'estrctio" of the ba"%s assets, or :horecei$es or &erits or cases to be recei$e' i" sai' ba"% a"* 'e&osit, collectio" of loa"sa"'or recei$ables, or :ho &a*s ot or &erits or cases to be tra"sferre' a"* secrities or&ro&ert* of sai' ba"% shall be sb?ect to the &e"al &ro$isio"s of the Ne: Ce"tral Ba"% Act.

CHAPTER VII

LAGS >OE3NIN> OT


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affecti"! the ba"% a* be a'e, a"' to file :ith the Secrities a"' E@cha"!e Coissio" a'l* athe"ticate' "oi"atio" of sch a!e"t.

I" the abse"ce of the a!e"t or hea' or shol' there be "o &erso" athori#e' b* the

ba"% &o" :ho ser$ice of so"s, &rocesses a"' all le!al "otices a* be a'e, ser$iceof so"s, &rocesses a"' le!al "otices a* be a'e &o" the Ba"!%o Se"tral De&t*>o$er"or I"Char!e of the s&er$isi"! a"' e@ai"i"! 'e&arte"ts a"' sch ser$ice shall beas effecti$e as if a'e &o" the ba"% or its 'l* athori#e' a!e"t or hea'.

I" case of ser$ice for the ba"% &o" the Ba"!%o Se"tral De&t* >o$er"or I"char!e of

the s&er$isi"! a"' e@ai"i"! 'e&arte"ts, the sai' 'e&t* >o$er"or shall re!ister a"'tra"sit b* ail to the &resi'e"t or the secretar* of the ba"% at its hea' or &ri"ci&al office aco&*, 'l* certifie' b* hi, of the so"s, &rocess, or "otice. The se"'i"! of sch co&* ofthe so"s, &rocess, or "otice shall be a "ecessar* &art of the ser$ices a"' shall co&letethe ser$ice. The re!istr* recei&t of aili"! shall be &ria facie e$i'e"ce of the tra"sissio" ofthe so"s, &rocess or "otice. All costs "ecessaril* i"crre' b* the sai' De&t* >o$er"orfor the a%i"! a"' aili"! a"' se"'i"! of a co&* of the so"s, &rocess, or "otice to the&resi'e"t or the secretar* of the ba"% at its hea' or &ri"ci&al office shall be &ai' i" a'$a"ce b*the &art* at :hose i"sta"ce the ser$ice is a'e.

SEC. 44. Laws $$lica+le.

I" all atters "ot s&ecificall* co$ere' b* s&ecial &ro$isio"s a&&licable o"l* to a forei!"ba"% or its bra"ches a"' other offices i" the hili&&i"es a"* forei!" ba"% lice"se' to 'obsi"ess i" the hili&&i"es shall be bo"' b* the &ro$isio"s of this Act, all other la:s, rlesa"' re!latio"s a&&licable to ba"%s or!a"i#e' "'er the la:s of the hili&&i"es of the saeclass, e@ce&t those that &ro$i'e for the creatio", foratio", or!a"i#atio" or 'issoltio" ofcor&oratio"s or for the fi@i"! of the relatio"s, liabilities, res&o"sibilities, or 'ties ofstoc%hol'ers, ebers, 'irectors or officers of cor&oratio"s to each other or to the cor&oratio".

SEC. 48. e%ocation of License of a 1oreign Bank

The ;o"etar* Boar' a* re$o%e the lice"se to tra"sact bsi"ess i" the hili&&i"es of,a"* forei!" ba"%, if it fi"'s that the forei!" ba"% is i"sol$e"t or i" ii"e"t 'a"!er thereof orthat its co"ti"a"ce i" bsi"ess :ill i"$ol$e &robable loss to those tra"sacti"! bsi"ess :ith it.

After the re$ocatio" of its lice"se, it shall be "la:fl for a"* sch forei!" ba"%s to tra"sactbsi"ess i" the hili&&i"es "less its lice"se is re"e:e' or reisse'. After the re$ocatio" ofsch lice"se, the Ba"!%o Se"tral shall ta%e the "ecessar* actio" to &rotect the cre'itors ofsch forei!" ba"% a"' the &blic. The &ro$isio"s of the Ne: Ce"tral Ba"% Act o" sa"ctio"sa"' &e"alties shall li%e:ise be a&&licable.

CHAPTER I=

T30ST OE3ATIONS

SEC. 45. #thority to /ngage in Tr#st B#siness.

O"l* a stoc% cor&oratio" or a &erso" 'l* athori#e' b* the ;o"etar* Boar' to e"!a!ei" trst bsi"ess shall act as a trstee or a'i"ister a"* trst or hol' &ro&ert* i" trst or o"'e&osit for the se, be"efit, or behoof of others. For &r&oses of this Act, sch a cor&oratio"shall be referre' to as a trst e"tit*.

SEC. 86. Cond#ct of Tr#st B#siness.

A trst e"tit* shall a'i"ister the f"'s or &ro&ert* "'er its csto'* :ith the 'ili!e"cethat a &r'e"t a" :ol' e@ercise i" the co"'ct of a" e"ter&rise of a li%e character a"' :ithsiilar ais.

No trst e"tit* shall, for the acco"t of the trstor or the be"eficiar* of the trst,

&rchase or ac+ire &ro&ert* fro, or sell, tra"sfer, assi!", or le"' o"e* or &ro&ert* to, or&rchase 'ebt i"stre"ts of, a"* of the 'e&arte"ts, 'irectors, officers, stoc%hol'ers, or


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e&lo*ees of the trst e"tit*, relati$es :ithi" the first 'e!ree of co"sa"!i"it* or affi"it*, or therelate' i"terests, of sch 'irectors, officers a"' stoc%hol'ers, "less the tra"sactio" iss&ecificall* athori#e' b* the trstor a"' the relatio"shi& of the trstee a"' the other &art*i"$ol$e' i" the tra"sactio" is fll* 'isclose' to the trstor of be"eficiar* of the trst &rior to thetra"sactio".

The ;o"etar* Boar' shall &rol!ate sch rles a"' re!latio"s as a* be "ecessar*

to &re$e"t circ$e"tio" of this &rohibitio" or the e$asio" of the res&o"sibilit* herei" i&ose'

o" a trst e"tit*.SEC. 81. egistration of rticles of 'ncor$oration and By*Laws of a Tr#st /ntity.

The Secrities a"' E@cha"!e Coissio" shall "ot re!ister the articles of i"cor&oratio"a"' b*la:s or a"* ae"'e"t thereto, of a"* trst e"tit*, "less acco&a"ie' b* a certificateof athorit* isse' b* the Ba"!%o Se"tral.

SEC. 82. 4ini& Ca$itali3ation.

A trst e"tit*, before it ca" e"!a!e i" trst or other fi'ciar* bsi"ess, shall co&l* :ith

the i"i &ai'i" ca&ital re+iree"t :hich :ill be 'eteri"e' b* the ;o"etar* Boar'.SEC. 8-. Powers of a Tr#st /ntity.

A trst e"tit*, i" a''itio" to the !e"eral &o:ers i"ci'e"t to cor&oratio"s, shall ha$e the&o:er to/

83.1. Act as trstee o" a"* ort!a!e or bo"' isse' b* a"* "ici&alit*, cor&oratio",or a"* bo'* &olitic a"' to acce&t a"' e@ecte a"* trst co"siste"t :ith la:

83.2. Act "'er the or'er or a&&oi"te"t of a"* cort as !ar'ia", recei$er, trstee, or'e&ositar* of the estate of a"* i"or or other i"co&ete"t &erso", a"' asrecei$er a"' 'e&ositar* of a"* o"e*s &ai' i"to cort b* &arties to a"* le!al

&rocee'i"!s a"' of &ro&ert* of a"* %i"' :hich a* be bro!ht "'er the?ris'ictio" of the cort

83.3. Act as the e@ector of a"* :ill :he" it is "ae' the e@ector thereof83.4. Act as a'i"istrator of the estate of a"* 'ecease' &erso", :ith the :ill a""e@e',

or as a'i"istrator of the estate of a"* 'ecease' &erso" :he" there is "o :ill83.5. Acce&t a"' e@ecte a"* trst for the hol'i"!, a"a!ee"t, a"' a'i"istratio" of

a"* estate, real or &erso"al, a"' the re"ts, isses a"' &rofits thereof a"'83.6. Establish a"' a"a!e coo" trst f"'s, sb?ect to sch rles a"' re!latio"s

as a* be &rescribe' b* the ;o"etar* Boar'.

SEC. 89. De$osit for the 1aithf#l Perfor&ance of Tr#st D#ties.

Before tra"sacti"! trst bsi"ess, e$er* trst e"tit* shall 'e&osit :ith the Ba"!%oSe"tral, as secrit* for the faithfl &erfora"ce of its trst 'ties, cash or secrities a&&ro$e'b* the ;o"etar* Boar' i" a" ao"t e+al to or "ot less tha" Fi$e h"'re' thosa"' &esos(66,666.66) or sch hi!her ao"t as a* fi@e' b* the ;o"etar* Boar'/ ro$i'e', ho:e$er,That the ;o"etar* Boar' shall re+ire e$er* trst e"tit* to i"crease the ao"t of its cash orsecrities o" 'e&osit :ith the Ba"!%o Se"tral i" accor'a"ce :ith the &ro$isio"s of this&ara!ra&h. Shol' the ca&ital a"' sr&ls fall belo: sai' ao"t, the ;o"etar* Boar' shallha$e the sae athorit* as that !ra"te' to it "'er the &ro$isio"s of the fifth &ara!ra&h ofSectio" -9 of this Act.

A trst e"tit* so lo"! as it shall co"ti"e to be sol$e"t a"' co&l* :ith la:s orre!latio"s shall ha$e the ri!ht to collect the i"terest ear"e' o" sch secrities 'e&osite' :iththe Ba"!%o Se"tral a"', fro tie to tie, :ith the a&&ro$al of the Ba"!%o Se"tral, toe@cha"!e the secrities for others. If the trst e"tit* fails to co&l* :ith a"* la: or re!latio",the Ba"!%o Se"tral shall retai" sch i"terest o" the secrities 'e&osite' :ith it for the be"efitof ri!htfl claia"ts. Al clais risi"! ot of the trst bsi"ess of a trst e"tit* shall ha$e &riorit*o$er all other clais as re!ar's the cash or secrities 'e&osite' as abo$e &ro$i'e'. The;o"etar* Boar' a* "ot &erit the cash or secrities 'e&osite' i" accor'a"ce :ith the&ro$isio"s of this Sectio" to be re'ce' belo: the &rescribe' i"i ao"t "til the


20/22

'e&ositi"! e"tit* shall 'isco"ti"e its trst bsi"ess a"' shall satisf* the ;o"etar* Boar' that ithas co&lie' :ith all its obli!atio"s i" co""ectio" :ith sch bsi"ess.

SEC. 8. Bond of Certain Persons for the 1aithf#l Perfor&ance of D#ties.

Before a" e@ector, a'i"istrator, !ar'ia", trstee, recei$er or 'e&ositar* a&&oi"te' b*the cort e"ters &o" the e@ectio" of his 'ties, he shall, &o" or'er of the cort, file a bo"'i" sch s as the cort a* 'irect.

0&o" the a&&licatio" of a"* e@ector, a'i"istrator, !ar'ia", trstee, recei$er,

'e&ositar* or a"* other &erso" i" i"terest, the cort a*, after "otice a"' heari"!, or'er thatthe sb?ect atter of the trst or a"* &art, thereof be 'e&osite' :ith a trst e"tit*. 0&o"&rese"tatio" of &roof to the cort that the sb?ect atter of the trst has bee" 'e&osite' :ith atrst e"tit*. 0&o" &rese"tatio" of &roof to the cort that the sb?ect atter of the trst hasbee" 'e&osite' :ith a trst e"tit*, the cort a* or'er that the bo"' !i$e" b* sch &erso"s forthe faithfl &erfora"ce of their 'ties be re'ce' to sch ss as it a* 'ee &ro&er/ro$i'e', ho:e$er, That the re'ce' bo"' shall be sfficie"t to secre a'e+atel* the &ro&era'i"istratio" a"' care of a"* &ro&ert* reai"i"! "'er the co"trol of sch &erso"s a"' the&ro&er acco"ti"! for sch &ro&ert*.

ro&ert* 'e&osite' :ith a"* trst e"tit* i" co"forit* :ith this Sectio" shall be hel' b*sch e"tit* "'er the or'ers a"' 'irectio" of the cort.

SEC. 87. /e&$tion of Tr#st /ntity fro& Bond e)#ire&ent.

No bo"' or other secrit* shall be re+ire' b* the cort fro a trst e"tr* for the faithfl&erfora"ce of its 'ties as corta&&oi"te' trstee, e@ector, a'i"istrator, !ar'ia",recei$er, or 'e&ositar*.


21/22

SEC. 5-. Establishe"t of Bra"ches of a Trst E"tit*. The or'i"ar* bsi"ess of a trst e"tit* shallbe tra"sacte' at the &lace of bsi"ess s&ecifie' i" its articles of i"cor&oratio". Sch trst e"tit* a*,:ith &rior a&&ro$al of the ;o"etar* Boar', establish bra"ches i" the hili&&i"es a"' the sai' e"tit*shall be res&o"sible for all bsi"ess co"'cte' i" sch bra"ches to the sae e@te"t a"' i" the saea""er as tho!h sch bsi"ess ha' all bee" co"'cte' i" the hea' office.For the &r&ose of this Act, the trst e"tit* a"' its bra"ches shall be treate' as o"e "it.

C9 ' ??, Cha&ter I of the>e"eral Ba"%i"! Act, as ae"'e', i"cl'i"! sch rles a"' re!latio"s isse' &rsa"t thereto.0&o" ass&tio" b* the e"eral Ba"%i"!

Act, as ae"'e', to the Ba"!%o Se"tral a"' the ;o"etar* Boar' shall be 'eee' to refer to thee"eral Ba"%i"! Act, as ae"'e', a"' the &ro$isio"s of a"* other la:, s&ecial charters, rle orre!latio" isse' &rsa"t to sai' >e"eral Ba"%i"! Act, as ae"'e', or &arts thereof, :hich a* bei"co"siste"t :ith the &ro$isio"s of this Act are hereb* re&eale'. The &ro$isio"s of &ara!ra&h 8,Sectio" 8, 3e&blic Act No. -51, as ae"'e' b* 3e&blic Act No. 4966, are li%e:ise re&eale'.SEC. 57. Se&arabilit* Clase. If a"* &ro$isio" or sectio" of this Act or the a&&licatio" thereof to a"*&erso" or circsta"ce is hel' i"$ali', the other &ro$isio"s or sectio"s of this Act, a"' the a&&licatio"

of sch &ro$isio" or sectio" to other &erso"s or circsta"ces shall "ot be affecte' thereb*.

SEC. 54. Effecti$it* Clase This Act shall ta%e effect fiftee" (1) 'a*s follo:i"! its &blicatio" i" theOfficial >a#ette or i" t:o (2) "atio"al "e:s&a&ers of !e"eral circlatio".

A&&ro$e'/;AN0EL B. ILLA3, M3.S&ea%er of the


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MOSE< EME3CITO EST3ADA

resi'e"t of the hili&&i"es

ra8791the general banking law of 2000

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