AN ACT AMENDING SECTIONS THREE
Download as PDF
Download as Word
Collections
Create new Collection
Overview
Full Text
Details
Case
Agency Issuance Number
Published Date
AN ACT AMENDING SECTIONS THREE
Republic Act No. 5939
June 12, 1969
Case Overview and Summary
Summary of Republic Act No. 5939 (Rural Banks Act)Establishment and Operation of Rural Banks
- The Monetary Board of the Central Bank of the Philippines shall formulate rules and regulations governing the establishment and operation of Rural Banks. (Section 1)
- Rural Banks shall be organized as stock corporations, with 100% of the capital stock owned by Filipino citizens. (Section 2)
- If private subscription to capital stock is not available, the Development Bank of the Philippines may subscribe up to 1 million pesos, subject to conditions. (Section 2)
Loans and Lending Activities
- Rural Banks shall primarily provide credit to small farmers (owning or cultivating up to 50 hectares), farm families, cooperatives, and small merchants (capital investment up to 25,000 pesos). (Section 3)
- Loans may be granted on the security of lands without Torrens titles, subject to certain conditions. (Section 3)
- Foreclosure of mortgages for loans up to 3,000 pesos can be done through public postings instead of newspaper publication. (Section 3)
- Homesteaders or free patent holders have the right to redeem foreclosed lands within 2 years. (Section 3)
- Tenants' produce shares may be accepted as security. (Section 3)
Capital Supplementation
- The Development Bank of the Philippines shall subscribe to the capital stock of Rural Banks up to 1 million pesos, equal to the private shareholders' equity investment, upon certification by the Monetary Board. (Section 4)
- The Development Bank's shares may be retired or replaced by private investments, with pre-emptive rights for existing private shareholders. (Section 4)
Official Depository
- Rural Banks may act as official depositories of municipal, city, or provincial funds, subject to approval by the Monetary Board. (Section 5)
Tax Exemptions
- Rural Banks with net assets up to 1 million pesos (excluding government counterpart capital) are exempt from taxes, charges, and fees. (Section 6)
- Partial exemption applies for net assets between 1-3 million pesos, proportional to the excess over 1 million pesos. (Section 6)
- Full taxes, fees, and charges apply for net assets exceeding 3 million pesos. (Section 6)
Fee Exemptions
- Justices of the peace shall administer oaths or acknowledge instruments related to loans up to 3,000 pesos free of charges, fees, and documentary stamp tax. (Section 7)
- Registers of deeds shall register instruments related to loans up to 3,000 pesos free of charges, fees, and documentary stamp tax. (Section 8)
- For consolidated assignments, charges or fees shall only apply to the amount exceeding 3,000 pesos for each mortgage. (Section 8)
Amends
n/a
Amended by
n/a
Tags
Statutes
Republic Acts
rural banks
loans
farmers
merchants
cooperatives
capital stock
taxes
fees
exemptions
registration
mortgages
foreclosure
homestead
free patent
Development Bank of the Philippines
Monetary Board
Central Bank of the Philippines
Law
AN ACT AMENDING SECTIONS THREE
Republic Act No. 5939
•June 12, 1969
REPUBLIC ACT No. 5939
AN ACT AMENDING SECTIONS THREE, FOUR, FIVE, SEVEN, ELEVEN, FOURTEEN, SIXTEEN AND SEVENTEEN OF REPUBLIC ACT NUMBERED SEVEN HUNDRED TWENTY, AS AMENDED, OTHERWISE KNOWN AS THE RURAL BANKS ACT.
Section 1. Section three of Republic Act Numbered Seven hundred twenty, as amended, otherwise known as the Rural Banks Act, is hereby amended to read as follows:
"Sec. 3. In furtherance of this policy, the Monetary Board of the Central Bank of the Philippines shall formulate the necessary rules and regulations governing the establishment and operation of Rural Banks for the purpose of providing adequate credit facilities to small farmers and merchants, or to cooperatives of such farmers or merchants, and to supervise the operation of such banks."
Section 2. Section four of the same Act, as amended, is hereby amended to read as follows:
"Sec. 4. No Rural Bank shall be operated without a Certificate of Authority of the Monetary Board of the Central Bank. Rural Banks shall be organized in the form of stock corporations. Duly established cooperatives may organize...
Login to see full content
Amends
n/a
Amended by
n/a