BATAS PAMBANSA BLG. 63 - AN ACT
AMENDING FURTHER REPUBLIC ACT NUMBERED FORTY HUNDRED AND NINETY-THREE,
AS AMENDED, OTHERWISE KNOWN AS THE "PRIVATE DEVELOPMENT BANKS' ACT" |
Section 1.Sec. 3 of Republic Act numbered Forty hundred and ninety-three, as
amended, is hereby further amended to read as follows: "Sec. 3. A
private development bank shall exercise all the powers and shall assume
all the obligations of a savings and mortgage bank as provided in the
General Banking Act, except as otherwise bank shall be operated without
a certificate of authority from the Monetary Board of the Central Bank
which shall be issued upon compliance with the provisions of this law. "Nothing in this section shall be construed as precluding a private development bank from engaging, with prior approval of the Monetary Board, in commercial banking services or from operating under an expanded commercial banking authority, as provided under Sec. 21-B of Republic Act No. 337, as amended, nor from exercising, whenever applicable and not inconsistent with the provisions of this Act and Central Bank regulations, such other powers incident to a corporation." Sec. 2. Sec. 4 of the same Act, as amended, is hereby further amended to read as follows: "Sec. 4. A
private development bank shall be organized in the form of a
stock corporation and its paid-up capital shall not be less than four
million pesos for Class A, two million pesos for Class B, and one
million pesos for Class C: Provided, That at least seventy percent of
the voting stock subscribed by the private sector shall be owned and
held by the citizens of the Philippines, except where a new bank is
established as a result of the consolidation of existing private
development banks in any of which there are foreign-owned voting stocks
at the time of consolidation: Provided, however, That the Monetary
Board may, with the approval of the President of the Philippines,
reduce the required minimum percentage of Philippine ownership
prescribed herein from seventy percent (70%) to sixty percent (60%):
Provided, further, That if said subscription of private shareholders to
the initial capitalization of a private development bank cannot be
secured or is not available, the Development Bank of the Philippines on
representation of the said private shareholders and with the approval
of its Board of Governors shall, within thirty days from date of
approval by the Board of Governors, and after compliance by the private
stockholders with the conditions of said approval, subscribe to the
capital stock of such development bank, which shall be paid in full at
the time of subscription out of the trust fund provided in Section
three, paragraph three, of Republic Act Numbered Twenty hundred and
eighty-one, in an amount equal to the difference between the required
paid-up capital and the fully paid subscribed capital of the private
stockholders but not exceeding the latter: Provided, furthermore, That
the Board of Governors shall act on the representation made by the
private shareholders within thirty days from the date it is filed:
Provided, still further, That such shares of stock subscribed by the
bank shall be preferred shares entitled to cumulative dividends at the
yearly rate of one percent during the first five years, two percent
during the following five years, and three percent thereafter shall be
preferred as against common and other preferred stockholders in the
distribution of assets in the event of liquidation, and shall be
entitled to voting privileges: Provided, still further, That such
preferred shares of the bank may at any time he paid off at not less
than par and retired in whole or in part if, in the opinion of the
Monetary Board, the bank has accumulated enough capital strength to
permit retirement of such shares, or sold at not less than par to
private individuals who are citizens of the Philippines, and in the
sale thereof, the qualified registered stockholders shall have the
right of pre-emption within one year from the date of offer in
proportion to their respective holdings, but in the absence of such
buyers, preference shall be given to residents of the province or city
where the development bank is located: Provided, finally, That such
preferred shares may be converted to common shares when sold to private
individuals. All members of the board of directors of the private
development bank 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
private development bank, except in cases where such service is
incident to financial assistance provided by the government or a
government-owned or controlled corporation to the bank: Provided,
further, That in the case of merger or consolidation of private
development banks duly approved by the Monetary Board, the limitation
on the maximum number of corporate directors in a corporation, as
provided for in Sec. 12 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 private
development banks." Sec. 3. Sec. 5 of the same Act is hereby further amended to read as follows: "Sec. 5. At
least seventy-five per centum of the aggregate par value of the
preferred shares of the private development bank held by the
Development Bank of the Philippines shall be invested in medium and
long-term loans for economic development purposes: Provided, however,
That the restrictions prescribed herein shall no longer apply if all
the preferred shares held by the Development Bank of the Philippines
have been retired or have been transferred to private shareholders." Sec. 4. Sections 5-A and 7 of the same Act are hereby repealed. Sec. 5. Sec. 7-A of the same Act is hereby renumbered as Sec. 7 and amended to read as follows: "Sec. 7. Any
private development bank may invest in equities of such allied
undertakings as may be approved by the Central Bank for banks of their
category as provided in Sec. 6-A of Republic Act No. 337, as
amended: Provided, however, That (1) the total investment in equities
shall not exceed twenty-five percent (25%) of the net worth of the
private development bank; (2) the equity investment in any single
enterprise shall be limited to fifteen percent (15%) of the net worth
of the private development bank; (3) the total equity investment of the
private development bank in any single enterprise shall remain a
minority holding in that enterprise except where the enterprise is a
non-financial allied undertaking: and (4) 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 purposes of computing the prescribed
ratio of net worth to risk assets: Provided, further, That equity
investments shall not be permitted in non-related activities: Provided,
finally, That where the allied undertaking is a wholly- or
majority-owned subsidiary of the development bank, the Central Bank may
subject it to examination." Sec. 6. Sec. 10 of the same Act is hereby amended to read as follows: "Sec. 10.All private development banks, with net assets not exceeding ten
million pesos for Class C, twenty million pesos for Class B and thirty
million for Class A banks excluding the counterpart capital subscribed
and paid-in by the Development Bank of the Philippines shall be totally
exempt of all taxes, charges and fees of whatever nature and
description except from compensating tax and tariff duties. For this
purpose, the net assets of all private development banks shall be
determined as at December thirty-one of each year and if such are in
excess of the limits prescribed by this section they shall be liable
for payment of taxes for the following calendar year; said taxes to be
assessed, levied and collected in proportionate amount as the assets.
Private development banks existing as of the date of effectivity
January 1, 1985: Provided, That exemption from local government taxes,
charges and fees shall cease on January 1, 1981: Provided, further,
That private development banks to be established after the effectivity
of this Act shall not be entitled to exemption from such taxes, charges
and fees." Sec. 7. The same Act is hereby amended by adding a new section after Sec. 4-A, to read as follows: "Sec. 4-B.The authority of the Development Bank of the Philippines to provide
counterpart capital to private development banks under Republic Act No.
4093, as amended, and Republic Act No. 85, as amended, is hereby
terminated as of the effectivity of this Act: Provided, however, That
this provision should not be construed as precluding the Development
Bank of the Philippines from purchasing shares of stock of private
development banks pursuant to Subsection B of Sec. 88 of Republic
Act No. 265, as amended." Sec. 8. This Act shall take effect upon its approval. Approved: April 1, 1980. |