QuestionsQuestions (Act no. 2747)
It is in the city of Manila.
Among others: to prescribe by-laws, adopt and use a seal, make contracts, sue and be sued, exercise banking and incidental powers within the Act’s limitations, and exercise general corporate powers under the Corporation Law insofar as not inconsistent with the Act.
Php 20,000,000 (Philippine currency), divided into 200,000 shares at par value of Php 100 each.
60% at the time of subscription; 10% on or before Jan. 31, 1918; 10% on or before Jan. 31, 1919; 10% on or before Jan. 31, 1920; and remaining 10% on or before Jan. 31, 1921.
The Government purchases 101,000 shares at par. Up to 99,000 shares may be offered to provincial/municipal governments or the public at a price not below par as the board determines.
A committee consisting of the Governor-General, the President of the Senate, and the Speaker of the House of Representatives.
All the assets and liabilities of the Government Agricultural Bank of the Philippine Islands are transferred to the National Bank.
When, upon demand after maturity, the board of directors finds the loan/credit uncollectible; then principal and interest due are redeemed by the Government and become the Government’s property (with a possible renewal up to five years by agreement without losing the guaranty benefit).
Shares may not be sold to the public if, as a result, the portion of capital held by private investors will equal or exceed the portion owned by the Government of the Philippine Islands.
Within 180 days from passage; the Governor-General fixes inauguration by proclamation upon the certificate of the Insular Auditor and the bank president that it is ready to begin operations.
It may loan not to exceed 50% of its capital and surplus (and on real estate bonds proceeds), and in no case exceed 60% of the actual value of the land, including integral permanent improvements.
It is unlawful to use the proceeds (or any part) for any purpose other than the purpose(s) stated in the written, sworn application; violation allows rescission and foreclosure.
Loan amount cannot exceed 70% of the crop’s market value at date of loan; the crops must be insured by the mortgagor for the National Bank’s benefit for their entire market value; if crop value diminishes, mortgagor must furnish additional security or refund needed loan part; maturity is 3 months subject to 3 months extension at bank’s discretion.
Not more than three-fifths of the estimated value of the crops; the bank may require additional security such as registered real estate mortgages (in the debtor’s name), chattel mortgages (including livestock, machinery, agricultural implements), or personal bonds with sufficient surety.
Commercial paper loans: for periods not exceeding four months and in sums not exceeding Php 50,000 in any one case; the president must submit a report on each such loan to the board at its next succeeding session.
Circulating notes against assets cannot exceed: (1) paid-up capital stock and surplus plus (2) gold coin held in the bank’s own vaults or ordered from Treasury of the Philippine Islands, US or solvent National Banks, or a Federal Reserve Bank. The bank must hold at all times at least 33 1/3% of total outstanding circulating notes not covered by gold coin in lawful money, available only for redeeming those notes. It may also issue notes against US gold coin up to full value of such gold, which must be held only for redemption; redemption may be in lawful money of the Philippine Islands.
The bank may demand additional security or declare the obligation due and payable, then sell/assign/transfer the whole or part of the securities at the bank’s option (public/private sale), without needing demand/advertisement/notice as described; bank may purchase at the sale; proceeds are applied to liabilities after costs, returning any surplus; borrower remains liable for any deficiency.
Within one year after the sale resulting from foreclosure, the mortgagor may redeem by paying the amount fixed by the court in the order of execution plus interest at the mortgage rate, and all costs and judicial expenses incurred by the bank by reason of the execution and sale and custody of the property.