REPUBLIC ACT NO. 10574 (Amending Art of the Rural Bank Act. RA. 7353)

8/10/2019 REPUBLIC ACT NO. 10574 (Amending Art of the Rural Bank Act. RA. 7353)

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[REPUBLIC ACT NO.10574]

AN ACT ALLOWING THE INFUSION OF FOREIGN EQUITY IN THE CAPITAL OF

RURAL BANKS, AMENDING REPUBLIC ACT NO. 7353, OTHERWISE KNOWN AS

THE RURAL BANK ACT OF 1!!"#, AS AMENDED, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congressassembled:

SECTION 1. Section 4 of Republic Act No. 7353, a a!en"e", i #e$eb% a!en"e" to $ea" a

follo&'

(SEC. 4. No $u$al ban) #all be ope$ate" &it#out a Ce$tificate of Aut#o$it% f$o! t#e *oneta$%+oa$" of t#e +an)o Sent$al n -ilipina. Ru$al ban) #all be o$anie" in t#e fo$! of toc)

co$po$ation. No le t#an fo$t% pe$cent /402 of t#e otin toc) of a $u$al ban) #all be

o&ne" b% citien of t#e -#ilippine o$ co$po$ation o$ aociation o$anie" un"e$ t#e la& oft#e -#ilippine at leat it% pe$cent /02 of oe capital i o&ne" b% uc# citien. Non6

ilipino citien !a% o&n, ac8ui$e o$ pu$c#ae up to it% pe$cent /02 of t#e otin toc) in a

$u$al ban). T#e pe$centae of fo$ein6o&ne" otin toc) #all be "ete$!ine" b% t#e citien#ipof t#e in"ii"ual o$ co$po$ate toc)#ol"e$ of t#e $u$al ban). 9pon conultation &it# t#e $u$al

ban) in t#e a$ea, "ul% etabli#e" coope$atie an" co$po$ation p$i!a$il% o$anie" to #ol"

e8uitie in $u$al ban) !a% o$anie a $u$al ban) an":o$ ubc$ibe to t#e #a$e of toc) of an%

$u$al ban)' Provided, T#at a coope$atie o$ co$po$ation o&nin o$ cont$ollin t#e ole o$!a;o$it% of t#e otin toc) of t#e $u$al ban) #all be ub;ect to pecial ea!ination an" to uc#

$ule an" $eulation a t#e *oneta$% +oa$" !a% p$ec$ibe. If ubc$iption of p$iate

#a$e#ol"e$ to t#e capital toc) of a $u$al ban) cannot be ecu$e" o$ i not aailable, o$

inufficient to !eet t#e no$!al c$e"it nee" of t#e localit%, t#e

SEC. ?. Section 5 of Republic Act No. 7353, a a!en"e", i #e$eb% a!en"e" to $ea" a follo&'
http://www.gov.ph/1992/04/02/republic-act-no-7353/http://www.gov.ph/1992/04/02/republic-act-no-7353/


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(SEC. 5. Non6ilipino citien !a% beco!e !e!be$ of t#e +oa$" of =i$ecto$ of a $u$al ban)

but t#ei$ pa$ticipation in t#e +oa$" #all be li!ite" to t#ei$ p$opo$tionate #a$e in t#e e8uit% of

t#e $u$al ban)'Provided, however, T#at at leat one /12 in"epen"ent "i$ecto$ #all be electe" tot#e +oa$" of =i$ecto$.

(No "i$ecto$ o$ office$ of an% $u$al ban) #all, eit#e$ "i$ectl% o$ in"i$ectl%, fo$ #i!elf o$ a t#e$ep$eentatie o$ aent of anot#e$, bo$$o& an% of t#e "epoit o$ fun" of uc# ban), no$ #all

#e beco!e a ua$anto$, in"o$e$, o$ u$et% fo$ loan f$o! uc# ban) to ot#e$, o$ in an% !anne$be an oblio$ fo$ !one% bo$$o&e" f$o! t#e ban) o$ loane" b% it ecept &it# t#e &$itten app$oal

of t#e !a;o$it% of t#e "i$ecto$ of t#e ban), eclu"in t#e "i$ecto$ conce$ne". An% uc# app$oal

#all be ente$e" upon t#e $eco$" of t#e co$po$ation an" a cop% of uc# ent$% #all be t$an!itte"fo$t#&it# to t#e app$op$iate upe$iin "epa$t!ent. T#e "i$ecto$:office$ of t#e ban) o

iolate t#e p$oiion of t#i ection #all be i!!e"iatel% "i!ie" f$o! #i office an" #all be

penalie" in acco$"ance &it# Section ? of t#i Act.

(T#e *oneta$% +oa$" !a% $eulate t#e a!ount of c$e"it acco!!o"ation t#at !a% be eten"e"

"i$ectl% to t#e "i$ecto$, office$ o$ toc)#ol"e$ of $u$al ban) of ban)in intitution. @o&ee$,t#e outtan"in c$e"it acco!!o"ation ic# a $u$al ban) !a% eten" to eac# of it toc)#ol"e$

o&nin t&o pe$cent /?2 o$ !o$e of t#e ubc$ibe" capital toc), it "i$ecto$, o$ office$ #allbe li!ite" to an a!ount e8uialent to t#e $epectie outtan"in "epoit an" boo) alue of t#e

pai"6in capital cont$ibution in t#e ban).>

SEC. 3. Section of Republic Act No. 7353 i #e$eb% a!en"e" to $ea" a follo&'

(SEC. .


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epene' Provided, furthermore, T#at t#e applicant fo$ #o!etea" o$ f$ee patent #a al$ea"%

!a"e i!p$oe!ent on t#e lan" an" t#e loan applie" fo$ i to be ue" fo$ fu$t#e$ "eelop!ent of

t#e a!e o$ fo$ ot#e$ p$o"uctie econo!ic actiitie' Provided, finally, T#at t#e app$aial an"e$ification of t#e tatu of a lan" i a full $eponibilit% of t#e $u$al ban) an" an% loan $ante"

on an% lan" ic# #all be foun" late$ to be &it#in t#e fo$et one #all be fo$ t#e ole account of

t#e $u$al ban).

(T#e fo$eclou$e of !o$tae coe$in loan $ante" b% $u$al ban) an" eecution of ;u"!entt#e$eon inolin $eal p$ope$tie leie" upon b% a #e$iff #all be ee!pt f$o! t#e publication

in ne&pape$ no& $e8ui$e" b% la& e$e t#e total a!ount of loan, eclu"in inte$et "ue an"

unpai", "oe not ecee" One #un"$e" t#ouan" peo /-100,0002 o$ uc# a!ount a t#e*oneta$% +oa$" !a% p$ec$ibe a !a% be &a$$ante" b% p$eailin econo!ic con"ition. It #all

be ufficient publication in uc# cae if t#e notice of fo$eclou$e an" eecution of ;u"!ent a$e

pote" in t#e !ot conpicuou a$ea of t#e !unicipal buil"in, t#e !unicipal public !a$)et, t#e$u$al ban), t#e ba$ana% #all, an" t#e ba$ana% public !a$)et, if an%, e$e t#e lan" !o$tae"

i ituate" "u$in t#e pe$io" of it% /02 "a% i!!e"iatel% p$ece"in t#e public auction o$

eecution of ;u"!ent. -$oof of publication a $e8ui$e" #e$ein #all be acco!pli#e" b% anaffi"ait of t#e #e$iff o$ office$ con"uctin t#e fo$eclou$e ale o$ eecution of ;u"!ent an"

#all be attac#e" &it# t#e $eco$" of t#e cae'Provided, T#at en a #o!etea" o$ f$ee patent i

fo$ecloe", t#e #o!etea"e$ o$ f$ee patent #ol"e$, a &ell a #i #ei$ #all #ae t#e $i#t to

$e"ee! t#e a!e &it#in one /12 %ea$ f$o! t#e "ate of fo$eclou$e in t#e cae of lan" not coe$e"b% a To$$en Title o$ one /12 %ea$ f$o! t#e "ate of t#e $eit$ation of t#e fo$eclou$e in t#e cae

of lan" coe$e" b% a To$$en Title' Provided, finally, T#at in an% cae, bo$$o&e$, epeciall%

t#oe o a$e !e$e tenant, nee" onl% to ecu$e t#ei$ loan &it# t#e p$o"uce co$$epon"in tot#ei$ #a$e.

(A $u$al ban) #all be allo&e" to fo$ecloe lan" !o$tae" to it inclu"in lan" coe$e" b%

Republic Act No. 57 /Co!p$e#enie A$a$ian Refo$!

SEC. 4. Section of Republic Act No. 7353 i #e$eb% a!en"e" to $ea" a follo&'

(To p$oi"e upple!ental capital to an% $u$al ban) until it #a accu!ulate" enou# capital of it

o&n o$ ti!ulate p$iate inet!ent in $u$al ban), t#e


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SEC. . ffectivity Clause. T#i Act #all ta)e effect fifteen /152 "a% afte$ it co!plete

publication in t#e !fficial "a#ette o$ in at leat t&o /?2 ne&pape$ of ene$al ci$culation,

ic#ee$ i ea$lie$.

App$oe",

/S".2 $UAN PONCE ENRILE

President of the Senate

/S".2 FELICIANO BELMONTE $R.

Spea$er of the House

of Representatives

T#i Act ic# i a conoli"ation of @oue +ill No. 530 an" Senate +ill No. 3?? &a finall%

pae" b% t#e @oue of Rep$eentatie an" t#e Senate on eb$ua$% 4, ?013 an" Fanua$% 30,?013, $epectiel%.

/S".2 EDWIN B. BELLEN

%cting Senate Secretary

/S".2 MARILYN B. BARUA%YAP

Secretary "eneral

House of Representatives

App$oe"' *AG ?4 ?013

/S".2 BENIGNO S. AQUINO III

President of the Philippines

Documents

REPUBLIC ACT NO. 10574 (Amending Art of the Rural Bank Act. RA. 7353)