Republic Act No. 64: An act amending commonwealth act numbered seven hundred and twenty-six by extending the provisions thereof to mutual building and loan associations under certain conditions

Republic Act No. 64

An act amending commonwealth act numbered seven hundred and twenty-six by extending the provisions thereof to mutual building and loan associations under certain conditions

An Act Amending Commonwealth Act Numbered Seven Hundred and Twenty-Six by Extending the Provisions Thereof to Mutual Building and Loan Associations Under Certain Conditions

In plain language

This act amends Commonwealth Act No. 726 by inserting new sections that extend its provisions to mutual building and loan associations. It defines a bank to include such associations, exempts them from certain existing sections, allows them to issue preferred shares for this act, imposes conditions on board investments in preferred shares, and addresses the handling of losses incurred during enemy occupation.

Definition of a bank to include mutual building and loan associations

Exemption of mutual building and loan associations from certain sections of Commonwealth Act 726

Authorization for mutual building and loan associations to issue preferred shares for this act only

Restrictions on board investment in preferred shares until financial conditions are verified

Handling and distribution of losses incurred during enemy occupation

Amendment

Financial Regulation

Mutual Building and Loan Associations

REPUBLIC ACT No. 64

An Act Amending Commonwealth Act Numbered Seven Hundred and Twenty-Six by Extending the Provisions Thereof to Mutual Building and Loan Associations Under Certain Conditions

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

Section 1

Commonwealth Act Numbered Seven hundred and twenty-six is amended by inserting, after section ten thereof, two new sections which shall read as follows:

> "Sec. 10. (a) The term "bank" as used in this Act shall be deemed to include mutual building and loan associations: Provided, That the provisions of section eight, relative to the ratio to be maintained between the remaining unimpaired capital and surplus and the outstanding deposit liabilities, and the whole of sections nine and ten of this Act shall not be applicable to mutual building and loan associations: And Provided, further, That mutual building and loan associations are authorized to issue preferred shares of stock as mentioned herein solely for the purposes of this Act. > > "(b) The Board shall not invest in preferred shares of any mutual building and loan association until after such association, with the approval of the Bank Commissioner, shall have ascertained its true financial condition and apportioned the loss incurred during the period of enemy occupation, if any, by prorating such loss among the shareholders of all classes according to the book value of all outstanding shares: Provided, That recoveries made of any loss incurred during the period of enemy occupation shall be distributed to all the shareholders against whom such loss has previously been charged."

Section 2

This Act shall take effect upon its approval.

Approved: October 18, 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.