REPUBLIC ACT No. 3518
AN ACT CREATING THE PHILIPPINE VETERANS' BANK, AND FOR OTHER PURPOSES.
Section 1. Name Domicile and place of business. There is hereby created a bank to be known as the Philippine Veterans Bank, which shall be commonly called the Veterans Bank. Its principal domicile and place of business shall be in the City of Manila but branches or agencies may be established in the provinces and cities as the Board of Directors may decide.
CORPORATE POWERS
Section 2. Corporate powers and duties. The said Veterans Bank shall be a body corporate and shall have the power:
(a) To prescribe is by-laws;
(b) To adopt and use a seal;
(c) To sue and be sued;
(d) To carry on a trust business is accordance with the provisions of laws governing trust corporations;
(e) To grant long-term loans and advances preferably to veterans, their widows, orphans or compulsory heirs against security and real estate and/or other acceptable assets including backpay certificates issued by the National Treasurer pursuant to Republic Act No....
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Republic Acts
AN ACT CREATING THE PHILIPPINE VETERANS'' BANK
Republic Act No. 3518
Summary of Republic Act No. 3518 (Philippine Veterans' Bank Act):
Creation and Corporate Powers of the Philippine Veterans' Bank:
- Creates the Philippine Veterans' Bank, with principal office in Manila and authority to establish branches (Section 1)
- Grants corporate powers including adopting by-laws, suing, carrying trust business, granting loans, investing, issuing bonds, contracting obligations, appointing officers/employees, and exercising general banking powers (Section 2)
Capital Stock and Stockholders:
- Authorized capital stock is ₱100 million divided into 510,000 common shares and 490,000 preferred shares with par value of ₱100 each (Section 3(a))
- At least 51% of common shares shall be subscribed by the government for veterans, widows, orphans or heirs, paid from Veterans Trust Fund (Section 3(a))
- After 5 years, common shares held by government shall be transferred to individual veterans (Section 3(a))
- 49% preferred shares shall be available for subscription by veterans, widows, orphans or heirs (Section 3(a))
- Defines "veteran" and "organized veterans organizations" (Section 4(a), 4(b))
- Philippine Veterans Administration shall determine eligible veterans and heirs (Section 4(c), 4(d), 4(e), 4(f))
Loans and Banking Operations:
- Authorizes loans for agricultural, commercial, industrial enterprises, with preference to veterans (Section 5(a))
- Allows loans secured by harvested crops, with conditions (Section 5(b))
- Permits installment loans on standing crops, with additional security (Section 5(c))
- Allows advances or discounts for agricultural, manufacturing, industrial or commercial purposes, with 1-year maturity (Section 5(d))
- Limits on total liabilities of borrowers and loans for single industry (Section 5(e))
Board of Directors:
- Initially 11 members, including ex-officio members and veterans appointed by the President, for 1-year terms (Section 6(a))
- After share transfer, elected annually by stockholders (Section 6(a))
- Receives per diem of ₱50 per meeting attended (Section 6(a))
- Elects Chairman, Vice-Chairman and Secretary (Section 6(b))
- Formulates policies, determines organization, establishes branches, appoints agents (Section 7)
Executive Officers:
- President is chief executive, chosen by Board with President's advice/consent for first 5 years (Section 8)
- Assisted by Executive Vice-President and Vice-Presidents appointed by Board (Section 8)
- President and Executive Vice-President must have 5 years' banking/finance experience (Section 8)
- President's salary capped at ₱30,000 yearly, Executive Vice-President at ₱25,000 (Section 8)
- President's duties include executing policies, making contracts, reporting to Board (Section 9)
Legal Counsel and Auditor:
- Bank shall have its own Legal Department appointed by Board (Section 10)
- Bank shall have Auditing Department headed by veteran Certified Public Accountant appointed by Board (Section 11)
- Auditor shall make annual report to Board, Federation President and Veterans Administrator (Section 11)
Personnel:
- Other officers/employees appointed by Board on President's recommendation, with preference to veterans/heirs (Section 12)
- Board may require fidelity bonds from officers/employees (Section 13)
- Subject to inspection by Central Bank (Section 14)
- Prohibits stock ownership or indebtedness to Bank by certain officials (Section 15)
Prohibited Loans and Restrictions:
- Prohibits loans to directors, officers, employees or agents except by unanimous Board vote (Section 16)
- Limits on loans to corporations with Board member as shareholder/agent (Section 16)
Real Estate:
- Authorizes purchase of necessary real estate and holding foreclosed properties for up to 5 years (Section 17)
- Allows mortgagor to redeem foreclosed property within 1 year (Section 18)
- Permits demanding additional securities, selling securities, collecting deficiencies (Section 19, 20)
Net Profits:
- 20% to reserve account until reserves equal capital (Section 22(a))
- Deduct guaranteed earnings of preferred shares (Section 22(b))
- Apply government's share to pay capital subscription (Section 22(b))
- 20% to Board of Trustees for grants to veterans/heirs for education, rehabilitation, etc. (Section 22(b))
- Remaining profits as dividends to common shareholders (Section 22(b))
- Creates 11-member Board of Trustees selected by Veterans Federation (Section 23)
Other Provisions:
- 50-year legal existence (Section 24)
- Prohibits other banks from using "Veterans" in name, with penalties (Section 25)
- Penalties for violating the Act (Section 26)
- Authorized as government depository (Section 27)
- Act deemed as Bank's articles of incorporation (Section 28)
- Requires adoption of by-laws (Section 29)
- Repeals inconsistent laws (Section 30)
Creation and Corporate Powers of the Philippine Veterans' Bank:
- Creates the Philippine Veterans' Bank, with principal office in Manila and authority to establish branches (Section 1)
- Grants corporate powers including adopting by-laws, suing, carrying trust business, granting loans, investing, issuing bonds, contracting obligations, appointing officers/employees, and exercising general banking powers (Section 2)
Capital Stock and Stockholders:
- Authorized capital stock is ₱100 million divided into 510,000 common shares and 490,000 preferred shares with par value of ₱100 each (Section 3(a))
- At least 51% of common shares shall be subscribed by the government for veterans, widows, orphans or heirs, paid from Veterans Trust Fund (Section 3(a))
- After 5 years, common shares held by government shall be transferred to individual veterans (Section 3(a))
- 49% preferred shares shall be available for subscription by veterans, widows, orphans or heirs (Section 3(a))
- Defines "veteran" and "organized veterans organizations" (Section 4(a), 4(b))
- Philippine Veterans Administration shall determine eligible veterans and heirs (Section 4(c), 4(d), 4(e), 4(f))
Loans and Banking Operations:
- Authorizes loans for agricultural, commercial, industrial enterprises, with preference to veterans (Section 5(a))
- Allows loans secured by harvested crops, with conditions (Section 5(b))
- Permits installment loans on standing crops, with additional security (Section 5(c))
- Allows advances or discounts for agricultural, manufacturing, industrial or commercial purposes, with 1-year maturity (Section 5(d))
- Limits on total liabilities of borrowers and loans for single industry (Section 5(e))
Board of Directors:
- Initially 11 members, including ex-officio members and veterans appointed by the President, for 1-year terms (Section 6(a))
- After share transfer, elected annually by stockholders (Section 6(a))
- Receives per diem of ₱50 per meeting attended (Section 6(a))
- Elects Chairman, Vice-Chairman and Secretary (Section 6(b))
- Formulates policies, determines organization, establishes branches, appoints agents (Section 7)
Executive Officers:
- President is chief executive, chosen by Board with President's advice/consent for first 5 years (Section 8)
- Assisted by Executive Vice-President and Vice-Presidents appointed by Board (Section 8)
- President and Executive Vice-President must have 5 years' banking/finance experience (Section 8)
- President's salary capped at ₱30,000 yearly, Executive Vice-President at ₱25,000 (Section 8)
- President's duties include executing policies, making contracts, reporting to Board (Section 9)
Legal Counsel and Auditor:
- Bank shall have its own Legal Department appointed by Board (Section 10)
- Bank shall have Auditing Department headed by veteran Certified Public Accountant appointed by Board (Section 11)
- Auditor shall make annual report to Board, Federation President and Veterans Administrator (Section 11)
Personnel:
- Other officers/employees appointed by Board on President's recommendation, with preference to veterans/heirs (Section 12)
- Board may require fidelity bonds from officers/employees (Section 13)
- Subject to inspection by Central Bank (Section 14)
- Prohibits stock ownership or indebtedness to Bank by certain officials (Section 15)
Prohibited Loans and Restrictions:
- Prohibits loans to directors, officers, employees or agents except by unanimous Board vote (Section 16)
- Limits on loans to corporations with Board member as shareholder/agent (Section 16)
Real Estate:
- Authorizes purchase of necessary real estate and holding foreclosed properties for up to 5 years (Section 17)
- Allows mortgagor to redeem foreclosed property within 1 year (Section 18)
- Permits demanding additional securities, selling securities, collecting deficiencies (Section 19, 20)
Net Profits:
- 20% to reserve account until reserves equal capital (Section 22(a))
- Deduct guaranteed earnings of preferred shares (Section 22(b))
- Apply government's share to pay capital subscription (Section 22(b))
- 20% to Board of Trustees for grants to veterans/heirs for education, rehabilitation, etc. (Section 22(b))
- Remaining profits as dividends to common shareholders (Section 22(b))
- Creates 11-member Board of Trustees selected by Veterans Federation (Section 23)
Other Provisions:
- 50-year legal existence (Section 24)
- Prohibits other banks from using "Veterans" in name, with penalties (Section 25)
- Penalties for violating the Act (Section 26)
- Authorized as government depository (Section 27)
- Act deemed as Bank's articles of incorporation (Section 28)
- Requires adoption of by-laws (Section 29)
- Repeals inconsistent laws (Section 30)