Supreme Court E-Library
Information At Your Fingertips

  View printer friendly version

Be it enacted by the Senate and House of Representatives of the Philippines in Legislature assembled and by the authority of the same:

SECTION 1. Section nineteen hundred and eighty-seven of the Revised Administrative Code is hereby amended to Bank; read as follows:

"SEC. 1987. Authority of bank.—The bank shall have authority to receive, invest, loan, pay out, and otherwise dispose of sums of money and other valuable things, to receive and pay out interest and other charges therefor and to conduct and transact any other business incidental to the operation of a savings bank: Provided, That the Postal Savings Bank Board upon the recommendation of the Director of Posts is hereby authorized and empowered, any provisions of existing law to the contrary notwithstanding, to reorganize the personnel of the bank in order that the requirements for the proper operation of the same may be adequately served, and for this purpose, the said board, upon the recommendation of the Director of Posts, is hereby authorized and empowered to create such positions and incur such expenditures as may be necessary out of the profits of the said bank in addition to those provided for in the appropriation Acts for the years nineteen hundred and thirty-three and nineteen hundred and thirty-four, this provision to have retroactive effect to cover the six positions already found necessary and filled with the approval of the Governor-General on the fifth of June, nineteen hundred and thirty-three: Provided, further, That after December thirty-first, nineteen hundred and thirty-four, no salaries shall be paid and expenditures incurred by the bank other than those provided for in the annual appropriation Acts."

SEC. 2. Section nineteen hundred and eighty-nine of the Revised Administrative Code, as amended, is hereby further amended to read as follows:

"SEC. 1989. Postal Savings Bank Board.—The Postal Savings Bank Board, hereinafter referred to as the board, shall consist of five members who shall be appointed by the Governor-General, with the consent of the Philippine Senate, and shall hold office for a term of three years. The members of the board shall elect from among themselves a chairman and a vice-chairman. The Superintendent, Postal Savings Bank Division, shall be secretary of the Board. Each member of the board shall receive a compensation of twenty pesos per diem for attendance at the sessions of the board, the provisions of existing law to the contrary notwithstanding: Provided, That in no year shall this remuneration exceed five hundred pesos for each member of the board. This compensation shall be paid out of the profits of the Postal Savings Bank."

SEC. 3. Section nineteen hundred and ninety of the Revised Administrative Code is hereby amended to read as follows:

"SEC. 1990. Duties of Board.—It shall be the duty of the board to invest the funds of the bank as provided herein, to fix the rates of interest on loans and deposits, to appoint the personnel of the bank authorized by section nineteen hundred and eighty-seven and to fix their compensations, and to perform such other duties as the proper investment and administration of the bank shall require."

SEC. 4. Section nineteen hundred and ninety-two of the Revised Administrative Code is hereby amended to read as follows:

"SEC. 1992. Duties of chief of division.—The superintendent, postal savings bank division, shall, under the direction of the Director of Posts, have immediate supervision over all matters pertaining to deposits and withdrawals, and such matters pertaining to investment as may be assigned to him by the Postal Savings Bank Board, upon recommendation of the Director of Posts. The bank shall keep a separate set of books dealing solely with its operations and the superintendent of the bank shall make monthly and annual statements thereof to the Director of Posts and the board and perform such other duties as the Director of Posts or the board may require."

SEC. 5. Section two thousand and two of the Revised Administrative Code is hereby amended to read as follows:

"SEC. 2002. Dormant accounts.—Any bank account upon which there has been no deposit, withdrawal, or other transaction at the request of the depositor for ten years after the end of the fiscal year in which the account was opened, or for ten years after a stipulation period named in the application when the account was opened, shall thereafter become a dormant account, and may be disposed of only by the Postal Savings Bank Board in accordance with Act Numbered Thirty-nine hundred and thirty-six, the provisions of existing law to the contrary notwithstanding."

SEC. 6. Subsections (e) and (m) of section two thousand and twenty-nine of the Revised Administrative Code is hereby amended to read as follows:

"(e) Upon first mortgage, deed of trust, or deed with contract for resale to the bank of improved and unencumbered real estate, with a title duly registered according to law, when the buildings are of a permanent and substantial character, situated in the Philippine Islands; but no such loan or investment shall be for more than sixty per centum of the value of such property as determined by the board.

"(m) In loans to provincial and municipal governments, for the construction of permanent public improvements: Provided, That these loans shall be repaid in not more than ten annual installments with interest at not to exceed six per centum per annum, payable quarterly: Provided, further, That in case the province or municipality which has contracted the loan fails to pay the principal or interest of any installment, the Director of Posts shall so notify the Collector of Internal Revenue, in the case of a province, or the provincial treasurer, in the case of a municipality and such Collector of Internal Revenue or provincial treasurer, as the case may be, is hereby authorized and directed to retain from any revenues coming into his possession, belonging to the province or municipality that contracted the loan, an amount sufficient to satisfy the sum due, and shall remit such sum to the Director of Posts.

"Loans to local governments as provided in this Act may be renewed in the discretion of the Postal Savings Bank Board for a period of not exceeding ten years and in case of renewal the amount due at the time of such renewal shall be paid in ten annual installments under the same conditions specified in the preceding paragraph: Provided, That such loans shall be granted only under conditions to be established by the Postal Savings Bank Board."

SEC. 7. Section two thousand and thirty-one of the Revised Administrative Code is hereby amended to read as follows:

"SEC. 2031. Restriction upon investment or loans upon real property.—No investment or loan shall be made upon a mortgage or deed on any property, including buildings thereon or upon the buildings or land alone, as hereinbefore provided, without the approval of four-fifths of the members of the Board nor in an amount in excess of ten per centum of the total amount of the funds of the Bank, nor for a longer time than ten years, nor in an amount in excess of fifty thousand pesos on any one piece of property, but loans granted for a longer term than three years shall be repaid on monthly, quarterly, semi-annual or annual basis; and every loan shall be made upon the condition that it may be recalled by the Board in the event of any material depreciation of the value of the security unless additional guaranty is given if required by the Board or if any of the conditions of the loan are not complied with; and total investment upon such mortgages and deed shall in no event exceed in the aggregate seventy-five per centum of the total funds of the Bank: Provided, however, That in the consideration of applications for loans of Government institutions the provinces and municipalities will be given preference, in so far as the amounts applied for by them are within their borrowing capacity and duly recommended by the Department Head: And provided, further, That any loan which may become overdue or payable may, in the discretion of the Board and on written application of the debtor made within six months before or thirty days after from the date the loan falls due, be renewed for a period not to exceed ten years, but loans so renewed shall be liquidated on monthly, quarterly, semi-annually or annual amortization plan."

SEC. 8. This Act shall take effect upon its approval.

Approved, November 29, 1933.