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Republic Act
Approved September 5, 1946

Republic Act No. 13

An act to amend sections five and six of commonwealth act numbered six hundred and seventy-two, entitled "an act to rehabilitate the philippine national bank"

An Act to Amend Sections Five and Six of Commonwealth Act Numbered Six Hundred and Seventy-Two, Entitled "An Act to Rehabilitate the Philippine National Bank"

In plain language

This law amends Sections 5 and 6 of Commonwealth Act No. 672 concerning the Philippine National Bank’s blocked deposit balances and net profit distribution, providing specific conditions for their use and approval.

  • Blocked deposit balances remain until June 30, 1947 and may be used under licenses issued by the Secretary of Finance.
  • Net profits are distributed 50% to surplus until it equals 50% of the capital stock, then 25% until surplus equals capital stock.
  • The rest of net profits are paid with approval of the Bank Commissioner to entities in proportion to blocked balances.
  • Losses realized are paid similarly under approval of the Bank Commissioner.
Philippine National Bank
Banking
Finance
Amendment

REPUBLIC ACT No. 13

An Act to Amend Sections Five and Six of Commonwealth Act Numbered Six Hundred and Seventy-Two, Entitled "An Act to Rehabilitate the Philippine National Bank"

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

Section 1

Sections five and six of Commonwealth Act Numbered Six hundred and seventy-two are hereby amended to read as follows:

> "Sec. 5. The blocked deposit balances of the Commonwealth Government, cities, provinces, and municipalities, remaining after effecting the write-offs as hereinbefore provided, shall stand as a credit balance in favor of the respective entities: Provided, That these deposit balances shall remain blocked until June thirty, nineteen hundred forty-seven and shall be available to cover such further deficiencies which may be disclosed or ascertained on or before June thirty, nineteen hundred forty-seven: Provided, further, That any further adjustments shall become effective only upon approval of the Secretary of Finance: And Provided, finally, That said deposit balances may, prior to June thirty, nineteen hundred forty-seven, be withdrawn under licenses to be issued by the Secretary of Finance, upon the recommendation of the Bank Commissioner. > > "Sec. 6. The net profits of the Philippine National Bank shall be apportioned annually as follows: > > "(1) Fifty per centum to surplus until the latter shall equal fifty per centum of the capital stock of the Bank, and thereafter twenty-five per centum of said net profits until such surplus shall equal the capital stock. > > "(2) The rest of the net profits shall be paid by the Bank with the approval of the Bank Commissioner to the respective entities in proportion to their blocked deposit balances until the total amounts thereof shall have been fully covered and refunded. > > "Any amount that may be realized from assets previously determined as losses shall also be paid by the Bank with the approval of the Bank Commissioner to the respective entities in proportion to their blocked deposit balances. > > "When the requirements of the preceding paragraphs numbered (1) and (2) shall have been fully complied with, the provisions of section four of Act Numbered Thirty-one hundred seventy-four of the Philippine Legislature with respect to disposition of net profits shall again be followed."

Section 2

This Act shall take effect upon its approval.

Approved: September 5, 1946

For information and research only, and not legal advice. This text may not reflect later amendments. For certified copies, refer to the Official Gazette or the issuing agency.