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Republic Act
Approved June 19, 1965

Republic Act No. 4199

An act amending section thirteen of republic act numbered seven hundred twenty, otherwise known as the rural banks act

An Act Amending Section Thirteen of Republic Act Numbered Seven Hundred Twenty, Otherwise Known as the Rural Banks Act

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In plain language

Amends Section 13 of RA 720 to allow the Central Bank to provide loans and rediscounting facilities to rural banks, and authorizes rural banks to borrow for agricultural and industrial development programs, with repayments guaranteed by the Republic of the Philippines.

  • Central Bank may give emergency loans to rural banks upon a five-member Monetary Board vote.
  • Central Bank may rediscount rural bank loans in normal times if the loan can be liquefied within 270 days.
  • Rural banks authorized to borrow on medium or long-term basis from the Central Bank or other institutions for agricultural and industrial development.
  • Repayment of foreign-origin loans guaranteed by the Republic of the Philippines.
Rural Banks Act
Central Bank
Loan
Agricultural Development
Industrial Development
Foreign Lending
Finance

REPUBLIC ACT No. 4199

An Act Amending Section Thirteen of Republic Act Numbered Seven Hundred Twenty, Otherwise Known as the Rural Banks Act

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

Section 1

Section thirteen of Republic Act Numbered Seven hundred twenty is hereby amended to read as follows:

"Sec. 13. In an emergency or when a financial crisis is imminent, the Central Bank may give a loan to any rural bank against assets of the rural bank which may be considered acceptable by a concurrent vote of at least five members of the Monetary Board.

In normal times, the Central Bank may rediscount against paper evidencing a loan granted by a rural bank to any of its customers which can be liquefied within a period of two hundred and seventy days: Provided, However, That for the purpose of implementing a nationwide program of agricultural and industrial development, rural banks are hereby authorized, under such terms and conditions as the Central Bank shall prescribe, to borrow, on a medium or long-term basis, funds that the Central Bank or any other government financing institution shall borrow from the International Bank for Reconstruction and Development or other international or foreign lending institutions for the specific purpose of financing the abovestated agricultural and industrial program. Repayment of loans obtained by the Central Bank of the Philippines or any other government financing institution from said foreign lending institutions under this section shall be guaranteed by the Republic of the Philippines.

Section 2

This Act shall take effect upon its approval.

Approved: June 19, 1965.

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.