BATAS PAMBANSA BLG. 62 - AN ACT
AMENDING FURTHER REPUBLIC ACT NUMBERED THREE THOUSAND SEVEN HUNDRED
SEVENTY-NINE, AS AMENDED, OTHERWISE KNOWN AS THE "SAVINGS AND LOAN
ASSOCIATION ACT" |
Section 1.Section five of Republic Act No. 3779, as amended, is hereby amended to
read as follows: "Sec. 5.Powers of savings and loan association. – A savings and loan
association shall be incorporated under the Corporation Code of the
Philippines. "A stock savings and loan association, in addition to the powers granted under the Corporation Code of the Philippines, shall exercise all the powers and assume all obligations of a savings and mortgage bank as provided in the General Banking Act: Provided, That nothing in this section shall be construed as precluding such association from performing, with prior approval of the Monetary Board, all the services authorized for commercial banks under Republic Act No. 337, as amended, or from operating under an expanded banking authority as provided in Sec. 21-B of the same act. "A non-stock savings and loan
association, in addition to the powers granted in the Corporation Code
of the Philippines, shall exercise the following: "(a) To grant loans not exceeding the member-borrower's savings and time deposits in the association, plus his four months' salary or regular income whether from employment or from his own business, or seventy percent (70%) of the fair market value of any property acceptable as collateral on first mortgage that he may offer as security: Provided, That no loan shall have a maturity of more than five years, except loans on the security of encumbered real estate for the purpose of home building and home development which may be granted with maturities not exceeding thirty years and medium or long-term loans to finance agricultural projects, subject to regulations prescribed by the Monetary Board: Provided, further, That in the case of a borrower who is a permanent employee or wage earner, the treasurer, cashier or paymaster of the office employing him is authorized, notwithstanding the provisions of any existing law, rule and regulation to the contrary, to make deductions from his salary, wage, or income pursuant to the terms of his loan, to remit deductions from his salary, wage, or income pursuant to the terms of his loan, to remit deductions to the savings and loan association concerned, and collect such reasonable fee for his services as may be authorized by rules promulgated by the Monetary Board; "(b) To charge
interest within the limits allowed by law, and collect such necessary
fees incidental to the grant of loans as may, by regulation, be
authorized by the Monetary Board; "(c) Subject to
such rules as the Monetary Board may approve, to discount with recourse
commercial papers and accounts
receivables; "(d) To invest its funds in any sound non-speculative enterprise, as well as in bonds, securities, and other obligations issued by the Government of the Philippines, or any of its political subdivisions, instrumentalities or corporations including government-owned or controlled corporations subject to the rules and regulations of the Monetary Board; "(e) To allow member-depositors to participate in the profits of the savings and loan association on the basis of their deposits on the date dividends are declared; "(f) To borrow
money or incur such obligations not exceeding twenty per centum of the
total assets of the association, from any public lending institutions,
such as the Development Bank of the Philippines, the Philippine
National Bank, the Government Service Insurance System, the Social
Security System, and from such private lending institutions as may be
approved by the Monetary Board. The Monetary Board may, in meritorious
cases, raise the ceiling on the borrowing capacity of the association
to an amount not exceeding thirty per centum of its total assets:
Provided, That any such association organized by employees of an entity
or a corporation may borrow funds from said entity or corporation but
not vice versa; "(f-1) To maintain deposits with banks and other stock savings and loan associations: Provided, That the amount of such deposits shall be subject to the loan limit to a single borrower as prescribed herein or by other special laws or regulations." Sec. 2. Section fourteen of the same Act is hereby further amended to read as follows: "Sec. 14.Directors and Officers. – At least two-thirds of the members of the
board of directors of any stock savings and loan association which may
be established after the approval of this Act shall be citizens of the
Philippines: Provided, however, That no appointive or elective public
official, whether full-time or part-time, shall at the same time serve
as officer of any stock savings and loan association, except in cases
where such service is incident to financial assistance provided by the
government or a government-owned or controlled corporation to such
association: Provided, further, That in the case of a merger or
consolidation of stock savings and loan associations duly approved by
the Monetary Board, the limitation on the maximum number of directors
in a corporation as provided for in Sec. 14 of the Corporation Code
of the Philippines, shall not be applied so that membership in the new
board may include up to the total number of directors provided for in
the respective articles of incorporation of the merging or
consolidating savings and loan associations." Sec. 3. Section twenty-one of the same Act is hereby further amended to read as follows: "Sec. 21.Limitation on investment. – "(a) No
non-stock savings and loan association at any one time shall have
invested in bonds and securities an aggregate amount in excess of ten
per centum of the total assets of such association; "(b) No non-stock savings and loan association at any one time have invested in real property an aggregate amount in excess of five per centum of the total assets of such corporation; "(c) No non-stock savings and loan association at any one time shall invest in furniture, fixture, furnishings and equipment and leasehold improvements for its offices, more than ten percent of its aggregate paid-up capital; "(d) No stock savings and loan association at any one time shall have an investment in real estate and improvements thereon, including equipment, in an aggregate amount in excess of fifty percent of its net worth: Provided, That real estate used for the stock savings and loan association's purposes owned by another corporation in which that association owns equity shall be considered as part of the association's total investment in real estate." Sec. 4. Section twenty-two of the same Act is further amended to read as follows: "Sec. 22.Reserves. – Every non-stock savings and loan association shall create a
withdrawable share reserve which shall consist of three per centum of
the aggregate capital contributions of the members." Sec. 5. This Act shall take effect upon its approval. Approved: April 1, 1980. |