Title
Amendment to Philippine Veterans Bank Charter
Law
Presidential Decree No. 1637
Decision Date
Sep 7, 1979
Presidential Decree No. 919 amends Republic Act No. 3518 to provide economic support for veterans, war widows, and orphans, and grants flexibility to the Secretary of National Defense in managing the national defense program through the Philippine Veterans Bank.
amending
economic support
veterans

Legal basis and prior amendments

  • Republic Act No. 3518 establishes the Philippine Veterans Bank and its governance framework.
  • Presidential Decree No. 236 previously amended Republic Act No. 3518 to reform and revitalize the bank’s operations and structure.
  • Section 1 amends Section 6 of Republic Act No. 3518, as amended by Section 2 of Presidential Decree No. 236.
  • Section 2 amends Section 8 of Republic Act No. 35-18, as amended by Section 3 of Presidential Decree No. 236 (using the law’s numbering as written).
  • Section 3 repeals or modifies inconsistent laws, decrees, orders, rules, and regulations.

Policy and purpose statements

  • The decree targets further improvement in the management and operations of the Philippine Veterans Bank.
  • The decree seeks to establish the rule that the President of the Philippine Veterans Bank shall concurrently be the Vice-Chairman of the bank’s Board of Directors.

Board of Directors: composition and pay

  • The bank’s affairs and business are directed and managed by a Board of Directors consisting of eleven (11) members, unless otherwise provided in the act.
  • The Board includes three (3) ex-officio members: the Administrator of the Veterans Affairs Office, the President of the Veterans Federation of the Philippines, and the Minister of National Defense.
  • The Board includes eight (8) other members: five from Luzon, two from Visayas, and one from Mindanao; each must be a veteran of good standing, a college graduate, and must have formal business training and/or experience in banking and finance for a period of five years.
  • The eight non-ex-officio members must be actually and physically residing in their region and are appointed by the President of the Philippines during the existence of Proclamation No. 1081 dated September 21, 1972, as amended by Proclamation No. 1103 dated January 17, 1973.
  • During the proclamation period, the eight members hold office for one year and until their successors are duly appointed and qualified.
  • After the lifting of Proclamation No. 1081, as amended by Proclamation No. 1103, the eight Board members are elected annually by the stockholders of the respective region in the manner prescribed in the By-Laws of the Bank.
  • No director, officer, or employee of any other bank is eligible to serve as a member of the Board of Directors of the Veterans Bank.
  • Board members receive a per diem allowance of Fifty Pesos (P50.00) for every meeting of the Board actually attended.
  • Section 6(b) requires the Board, by a majority vote of all its numbers, to elect its Chairman and Secretary (with the Secretary allowed to be a non-member of the Board) at a time and place provided in the By-Laws.
  • The Board must have a Vice-Chairman whose position is non-elective and must be held by the President of the Veterans Bank in a concurrent capacity.
  • Pending the election of its Chairman, the President of the Bank shall preside over the Board of Directors.

Bank President and vice presidents

  • The Chief Executive of the Bank is the President, chosen by the Board of Directors.
  • The President of the Veterans Bank concurrently serves as the Vice-Chairman of the bank’s Board of Directors.
  • The President must be chosen by the Board in addition to performing the general chief executive powers, functions, duties, and responsibilities of the office as recognized in the charter.
  • The President is assisted by an Executive Vice-President and such other Vice-Presidents as may be elected.
  • Vice-Presidents (including the Executive Vice-President and other Vice-Presidents) are removed only for cause by the Board of Directors.
  • The President and the Executive Vice-President must possess practical experience in banking or finance as executives for at least five years.
  • The salaries of the President, Executive Vice-President, and other Vice-Presidents are fixed by the Board of Directors.

Repeal and inconsistency rule

  • Section 3 repeals or modifies accordingly all laws, decrees, orders, rules, and regulations that are inconsistent or in conflict with the decree’s provisions.

Effective date

  • Section 4 makes the decree effective immediately upon issuance.

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