Question & AnswerQ&A (Commonwealth Act No. 459)
It is a bank established by the government to promote agricultural and industrial development by granting loans and carrying out various banking and trust functions. It is a body corporate with its principal place of business in Manila and exists for fifty years.
The Bank may grant agricultural loans secured by real estate mortgages, industrial loans secured by mortgages or deeds of trust on industrial assets, and real estate loans.
Loans shall not exceed sixty percent of the appraised or market value of the securities, including improvements and assets acquired with the loan proceeds.
The Government of the Philippines exclusively and fully subscribes to the capital stock.
The capital stock is one hundred fifty million pesos, divided into one hundred fifty thousand shares valued at one thousand pesos each.
Such officers or employees shall be removed immediately and punished by imprisonment not exceeding five years and a fine ranging from one thousand to five thousand pesos.
Loans require unanimous approval of non-interested Board members, and total liabilities to the Bank from that corporation shall not exceed five percent of the Bank's paid-up capital. Violations result in removal and penalties.
Loan proceeds must only be used for the purposes stated in the written and sworn loan application. Using proceeds otherwise is unlawful, causes rescission of contract, foreclosure, and criminal liability.
Unencumbered improved real estate, first mortgages, bonds or evidences of debt of the Philippine or U.S. government or guaranteed entities, collateral trust bonds secured by first mortgages on urban real estate, and properly appraised properties.
Foreclosure may follow Act No. 3135 procedures, with limited requirements for notice publication depending on property value, and the sale is conducted publicly with commissions authorized analogous to sheriff's fees.
Fifty percent of net profits go to reserves, and the remaining fifty percent are dividends paid to the government, with dividends not to exceed twelve percent of paid-up capital annually.
Seven members appointed by the President of the Philippines with consent of the Commission on Appointments, excluding private bank officers or employees; they are paid per diem if not government salaried officials.
The General Manager grants loans up to certain limits, makes contracts with Board advice, reports weekly to the Board, and furnishes operation information to high government officials.
They shall not reveal details of inspections except to the President, Secretary of Finance, or Board of Directors, nor disclose private fund or property information except by court order.
No, their duties and compensation are fixed by the General Manager with Board approval, and they are not subject to the Civil Service Law.