Question & AnswerQ&A (Act no. 2747)
The principal domicile and place of business of the Philippine National Bank is in the city of Manila.
The Philippine National Bank has the power to prescribe its by-laws, adopt and use a seal, make contracts, sue and be sued, exercise powers granted in the Act and incidental powers necessary for banking business, and exercise general corporation powers not inconsistent with this Act.
The authorized capital stock is twenty million pesos, Philippine currency, divided into two hundred thousand shares of one hundred pesos each at par value.
The government shall purchase one hundred and one thousand shares at par no later than January 31, 1917, with the voting power of government-owned shares vested in a committee of the Governor-General, Senate President, and House Speaker.
Loans secured by real estate mortgages shall not exceed 60% of the actual value of the land and permanent improvements; the mortgages must be insured as deemed advisable; repayment periods range from one to thirty years with specific installment requirements for loans over five years.
Proceeds of loans secured by real estate mortgages must be used only for the stated purposes in the loan application; violation of this is cause for contract rescission and mortgage foreclosure.
The Bank may purchase or discount promissory notes, drafts, and bills of exchange for agricultural, industrial, or commercial purposes, including loans secured by harvested and stored crops and standing crops, subject to specified value and insurance requirements.
Any person who violates provisions of the Act shall be punished by a fine not exceeding ten thousand pesos, imprisonment of up to five years, or both.
No, the Secretary of Finance, Insular Treasurer, and Insular Auditor are prohibited from owning stock or becoming indebted to the Philippine National Bank directly or indirectly.