REPUBLIC ACT NO. 7400 - AN ACT
FURTHER AMENDING REPUBLIC ACT NUMBERED THREE THOUSAND FIVE HUNDRED
NINETY-ONE, AS AMENDED, OTHERWISE KNOWN AS THE CHARTER OF THE
PHILIPPINE DEPOSIT INSURANCE CORPORATION, AND FOR OTHER PURPOSES
Section 1. Sec. 2 of Republic Act No. 3591, as amended, is
hereby further amended to read as follows:
"Sec. 2. The powers and functions of the Corporation
shall be vested in and exercised by a Board of Directors which shall be
composed of five (5) members as follows:
"(a) The Secretary of Finance who shall be the ex
officio Chairman of the Board without compensation.
"(b) The Governor of the Central Bank, who shall be
the ex officio member of the Board without compensation.
"(c) The President of the Corporation, who shall be
appointed by the President of the Philippines from either the
Government or private sector to serve on a full-time basis for a term
of six (6) years. The President shall also serve vice chairman of the
Board.
"(d) Two (2) members from the private sector, to be
appointed for a term of six (6) years without reappointment from the
President of the Philippines: provided, that of those first appointed,
the first appointee shall serve a period of two (2) years.
"No person shall be appointed as member of the Board unless he be of
good moral character and of unquestionable integrity and
responsibility, and who is of recognized competence in economics,
banking and finance, law, management administration or insurance, and
shall be at least thirty-five (35) years of age. For the duration of
their tenure or term in office and for a period of one year thereafter,
the appointive members of the Board shall be disqualified from holding
any office, position or employment in any insured bank.
"Whenever the Chairman of the Board is unable to attend a meeting of
the Board, or in the event of a vacancy in the office of the Secretary
of Finance, the President of the Corporation shall act as the chairman.
"The presence of three (3) members shall constitute a quorum, and all
decisions shall require a vote of a majority of the members present,
there being a quorum.
"The members of the Board of Directors from the private sector, except
the President shall receive a per diem for every board meeting
attended, the amount of which shall be Five hundred pesos (P500.00) per
meeting but not to exceed the sum of Two thousand pesos (P2,000.00) for
every single month.
"The Board of Directors shall have the authority:
"1. To prepare and issue rules and regulations as it
considers necessary for the effective discharge of its
responsibilities;
"2. To direct the management, operations and
administration of the Corporation;
"3. To appoint, establish the rank, fix the
remuneration and remove any officer or employee of the Corporation for
cause; subject to the Civil Service and pertinent compensation laws;
and
"4. To authorize such expenditures by the corporation
as are in the interest of the effective administration and operation of
the Corporation."
Sec. 2. Sec. 2-A of the same Act is hereby
amended to read as follows:
"Sec. 2-A. The President of the Corporation shall be
the Chief Executive thereof and his salary shall be fixed by the
President of the Philippines at a sum commensurate to the importance
and responsibility attached to the position. The sum total of the
salary of the President and the allowances and other emoluments which
the Board of Directors may grant him shall be ceiling for fixing the
salary allowances and other emoluments of all other personnel in the
Corporation.
"The powers and duties of the president of the Corporation are:
"(a) To prepare the agenda for the meeting of the
Board and to submit for the consideration of the Board the policies and
measures which he believes to be necessary to carry out the purposes
and provisions of this Act;
"(b) To execute and administer the policies and
measures approved by the Board;
"(c) To direct and supervise the operations and
internal administration of the Corporation in accordance with the
policies established by the Board. The President may delegate certain
of his administrative responsibilities to other officers of the
Corporation, subject to the rules and regulations of the Board;
"(d) To represent the Corporation, upon prior
authority of the Board, in all dealings with other offices, agencies
and instrumentalities of the Government and with all other persons or
entities, public or private, whether domestic, foreign or
international;
"(e) To authorize, with his signature, upon prior
authority of the Board, contracts entered into by the Corporation,
notes and securities issued by the Corporation, and the annual reports,
balance sheets, profits and loss statements, correspondence and other
documents of the Corporation. The signature of the President may be in
facsimile wherever appropriate;
"(f) To represent the corporation, either personally
or through counsel, in all legal proceedings or actions;
"(g) To delegate, with the prior approval of the
Board of Directors, his power to represent the Corporation, as provided
in subsections (d) and (f) of this Section , to other officers of the
Corporation; and
"(h) To exercise such other powers as may be vested
in him by the Board.
"The President shall be assisted by a Vice-President and other
officials whose appointment and removal for cause shall be approved and
whose salary shall be fixed by the Board of Directors upon
recommendation of the President of the Corporation. During the absence
or temporary incapacity of the President, or in case of vacancy or
permanent incapacity and pending the appointment of a new President of
the Corporation by the President of the Philippines, the Vice-President
shall act as President and discharge the duties and responsibilities
thereof."
Sec. 3. Sec. 3, subsections (b), (c), (f) and
(g) is hereby amended to read as follows:
"(b) The term 'Bank' and 'Banking Institution' shall
be synonymous and interchangeable and shall include banks, commercial
banks, savings bank, mortgage banks, rural banks, development banks,
cooperative banks, stock savings and loan associations and branches and
agencies in the Philippines of foreign banks and all other corporations
authorized to perform banking functions in the
Philippines."
"(c) The term 'receiver' includes a receiver,
commission, person or other agency charged by law with the duty to take
charge of the assets and liabilities of a bank which has been forbidden
from doing business in the Philippines, as well as the duty to gather,
preserve and administer such assets and liabilities for the benefit of
the depositors and creditors of said bank, and to continue into
liquidation whenever authorized under this Act other laws, and to
dispose of the assets and to wind up the affairs of such bank."
"(f) The term 'deposit' means the unpaid balance of
money or its equivalent received by a bank in the usual course of
business and for which it has given or its obliged to give credit to a
commercial, checking, savings, time or thrift account or which is
evidenced by passbook check, and/or certificate of deposit, printed or
issued in accordance with Central Bank Rules and Regulations and other
applicable laws, together with such other obligations of a bank, which,
consistent with banking usage and practices, the Board of Directors
shall determine and prescribe by regulations to be deposit liabilities
of the Bank: provided, that any obligation of a bank which is payable
at the office of the bank located outside of the Philippines shall no
be a deposit for any of the purposes of this Act or included as part of
the total deposits or in insured deposit: provided, further, that,
subject to the approval of the Board of Directors, any insured bank
which is incorporated under the laws of the Philippines which maintains
a branch outside the Philippines may elect to include for insurance its
deposit obligations payable only at such branch."
"(g) The term 'insured deposit' means the net amount
due to any depositor for deposits in an insured bank (after deducting
offsets) less any part thereof which is in excess of One hundred
thousand pesos (P1,000.00). Such net amount shall be determined
according to such regulations as the Board of Directors may prescribe
and in determining such amount due to any depositor, there shall be
added together all deposits in the bank maintained in the same capacity
and the same right for his benefit either in his own name or in the
name of others: provided, that the provisions of any law to the
contrary notwithstanding no owner/holder of any negotiable certificate
of deposit shall be recognized as a depositor entitled to the rights
provided in this Act unless his name is registered as owner/holder
thereof in the books of the issuing banks."
Sec. 4. Sec. 6, Subsections (a) and (h), of the
same Act is hereby amended to read as follows:
"(a) The assessment rate shall be determined by the
Board of Directors: provided, that the assessment rate shall not exceed
one fifth (1/5) of one per centum (1%) per annum. The semi-annual
assessment for each insured bank shall be in the amount of the product
of one half (½) the assessment rate multiplied by the assessment
based but in no case shall it be less than the amount of Two hundred
fifty (P250.00). The assessment base shall be the amount of the
liability of the bank for deposits, according to the definition of the
term 'deposit' in and pursuant to subsection (f) of Sec. 3 without
any deduction for indebtedness of depositors.
"The semi-annual assessment base for one semi-annual period shall be
the average of the assessment base of the bank as of the close of
business on March thirty-one and June thirty and the semi-annual
assessment base for the other-semi-annual period shall be the average
of the assessment base of the bank as for the close of business on
September thirty and December thirty-one: provided, that when any of
said days in a non-business day or legal holiday, either national or
provincial, the preceding business day shall be used. The certified
statements required to be filed with the Corporation under subsections
(b) and (c) of this Section shall be in such form and set forth such
supporting information as the Board of Directors shall prescribed. The
assessment payments required from the insured banks under subsections
(b) and (c) of this Section shall be made in such manner and at such
time or times as the Board of Director shall prescribe, provided the
time or times so prescribed shall not be later than sixty (60) days
after filing the certified statement setting forth the amount of
assessment."
"(h) Should any insured bank fail or refused to pay
any assessment required to be paid by such bank under any provision of
this Act, and should the bank not correct such failure or refusal
within thirty (30) days after written notice has been given by the
Corporation to an officer of the bank citing this subsection, and
stating that the bank has failed or refused to pay as required by the
law the insured status of such bank shall be determined by the Board of
Directors: provided, that, after the lapse of thirty (30) days from the
date when the written notice has been sent by registered mail, whether
or not such notice has been actually received by the bank, the
Corporation shall terminate the insured status of the bank. The bank
shall give written notice of such termination to each of the depositors
at his last address of record on the books of the bank and the
Corporation shall publish the notice of the termination of insured
status of the bank. After the termination of the insured status, the
insured deposit of each depositor in the bank on the date of such
termination, less all subsequent withdrawals from the deposits of such
depositor, shall continue to be insured for a period of ninety (90)
days. No additions to any such deposits and no new deposits in such
bank, after the date of such termination shall be insured by the
Corporation, and the bank shall not advertise or hold itself out as
having insured deposits unless the same connection shall also state
with equal prominence that such additions to deposits and new deposits
made be closed on account of insolvency within the period of ninety
(90) days, the Corporation shall have the same powers and rights with
respect to such bank as in the case of an insured bank."
Sec. 5. Sec. 7 of the same Act is hereby
amended to read as follows:
"Sec. 7(a). Whenever upon examination by the
Corporation into the condition of any insured bank, it shall be
disclosed that an insured bank or its directors or agents have
committed, are committing or about to commit unsafe or unsound
practices in conducting the business of the bank, or have violated, are
violating or about to violate any provisions of any law or regulation
to which the insured bank is subject, the Board of Directors shall
submit the report of the examination to the monetary board to secure
corrective action thereon. If no such corrective action is taken by the
Monetary Board within sixty (60) days from the submission of the
report, the Board of Directors shall, motu propio, institute corrective
action which it deems necessary. The Board of Directors may issue a
cease and desist order and require the bank or its directors or agents
concerned to correct the practices or violations within sixty (60)
days. However, If the practice or violation is likely to cause
insolvency or substantial dissipation of assets or earnings of the
bank, or is likely to seriously weaken the condition of the bank or
otherwise seriously prejudice the interests of its depositors and the
Corporation, the period to take corrective action shall not be more
than fifteen (15) days. The order may also include the imposition of
fines provided in Section 16 (f) hereof. The Board of Directors shall
duly inform the Monetary Board of the Central Bank of the Philippines
of action it has taken with respect to such practices or violations. If
the bank violates the cease and desist order or fails to correct the
practices or violations as required within the period prescribed
herein, the corporation shall terminate the insured status of the bank
the consequences of the termination of insured status of the bank on
the Corporation, the bank and the depositor and their deposits shall be
governed by Sec. 6 (h) hereof.
"(b) The actions and proceedings provided in the
proceeding subsection may be undertaken by the Corporation if, in its
opinion, an insured bank or its directors or agents have violated, are
violating or about to violate any provisions of this Act or any order,
rule or instruction issued by the Corporation or any written condition
imposed by the Corporation in connection with any transaction with or
grant by the Corporation."
Sec. 6. Sec. 8 is hereby amended by adding a
new paragraph to be designated as paragraph twelfth. Paragraph eighth
is likewise amended. Paragraphs eighth and twelfth shall read as
follows:
"Eight — To conduct independent examinations of and to required
information and reports from bank, as provided in this Act, whenever
deemed necessary by the Board of Directors: provided, that to the
extent practicable, said examinations shall maximize the efficient use
of available relevant reports, information and findings, specifically
from the Central Bank. The Board of Directors shall prescribe such
regulations as may be necessary to ensure the special nature and
reasonable exercise of this power."
"Twelfth — To compromise, condone or release, in whole or in part, any
of claim or settled liability to the Corporation, regardless of the
amount involved, under such terms and conditions as may be imposed by
the Board of Directors to protect the interest of Corporation."
Sec. 7. Sec. 9, subsection (b) and (d) of the
same Act is hereby amended to read as follows:
"(b) The Board of Directors shall appoint examiners
who shall have power, on behalf of the Corporation to examine any
insured bank. Each such examiner shall have the power to make a through
examination of all the affairs of the bank and in doing so, he shall
have the power to administer oaths, to examine and take and preserve
the testimony of any the officers and agents thereof, and to compel the
presentation of books, documents, papers or records necessary in his
judgment to ascertain the facts relative to the condition of the bank:
and shall make a full and detailed report of the condition of the bank
to the Corporation. The Board of Directors in like manner shall appoint
claim agents who shall have the power to investigate and examine all
claims for insured deposits and transferred deposits. Each claim agent
shall have the power to administer oaths and examine under oath and
take and preserve testimony of any person relating to such claim."
"(d) The Corporation shall have access to reports of
examination made by, and reports of condition made to the Central Bank
of the Philippines or its appropriate supervising departments, and the
Central Bank of the Philippines shall also have access to reports of
examination made by, and reports of condition made to the Corporation:
provided, that the provisions of any law to the contrary
notwithstanding, the Corporation shall likewise have access to reports,
findings and any other information derived from any special or general
examination of inquiry conducted by the Central Bank in respect to bank
fraud or serious irregularity in an insured bank: provided, that, the
Corporation shall use such reports and findings under similar terms and
conditions prescribed by applicable laws on the Central Bank."
Sec. 8. Sec. 9, subsection (e) of the same Act
is hereby amended to read as follows:
(e) Personnel of the Corporation are hereby
prohibited from:
"(1) being an officer, director, consultant, employee
or stockholder, directly or indirectly, of any bank or banking
institution except as otherwise provided in this Act;
"(2) receiving any gift or thing of value from any
officer, director or employee thereof:
"(3) revealing in any manner, except under order of
the court or authorized herein in such condition or business of any
such institution. The prohibition shall not be held to apply to the
giving of information to the Board of Directors or to any person
authorized by neither of them in writing to receive such
information.
"Notwithstanding the provisions of this Section and Sec. 2, members
of the Board of Directors and other personnel of the Corporation may
become directors and officers of any bank and banking institution and
of any entity related to such institution in connection with financial
assistance extended by the Corporation to such institution and when in
the opinion of the Board it is appropriate to make such a designation
to protect the interest of the Corporation.
"Borrowing from any bank or banking institution by examiners and other
personnel of the examination departments of the corporation shall be
prohibited only with respect to the particular institution in which
they are assigned, or are conducting an examination. Personnel of other
departments, offices or units of the Corporation shall likewise be
prohibited from borrowing from any bank or banking institution during
the period of time that a transaction of such institution with the
corporation is being evaluated, processed or acted upon by such
personnel: provided, however, that the Board may, at its discretion,
indicate the position levels or functional groups to which the
prohibition is applicable.
"Borrowing by all full-time personnel of the corporation from any bank
or banking institution shall be secured and disclosed to the Board, and
shall be subject to such further rules and regulations as the Board may
prescribe."
Sec. 9. The same Act is hereby amended by adding
new sections after Sec. 9 thereof, to read as follows:
"Sec. 9.-A. The provisions of other laws, general or
special, to the contrary notwithstanding, whenever it shall be
appropriate for the Monetary Board of the Central Bank of the
Philippines to appoint a receiver of any banking institution pursuant
to existing laws, the Monetary Board shall give price notice and
appoint the Corporation as receiver.
"In addition to the powers of a receiver pursuant to existing laws, the
Corporation is empowered to bring suits to enforce liabilities to or
recoveries of the bank. Further, the Corporation may, upon its own
responsibility, in the discretion of its Board of Directors and upon
justifiable reasons, appoint and hire persons or entities of recognized
competence in banking or finance as its deputies and assistants.
"The Corporation, its directors, officers and employees shall not be
subject to any action, claim or demand for or in connection with any
act done or omitted to be done by them in good faith in the exercise of
their functions or in connection with the exercise of the powers under
this Section and Section s 9-b, 9-c and 12(c) of this Act.
"Sec. 9-B. Before any distribution of the assets of
the closed bank in accordance with the preferences established by law,
the Corporation shall periodically charge against said assets such
reasonable receivership expenses and subject to approval by the proper
court, such reasonable liquidation expenses, it has incurred as part of
the costs of receivership/liquidation proceedings and collect payment
therefore from available assets.
"Sec. 9-C. Cases not provided in Sec. 9-A above
including the filing of cases to modify, set aside or restrain any
action of the Corporation therein shall be governed by Sec. 29 of R.
A. 265, as amended."
SECTION 10. Section 10, subsections (a-1,) (c) and
(d) is hereby amended to read as follows:
"(a-1) The permanent insurance fund hereinabove
created is hereby increased to Three billion pesos (P3,000,000,000.00)
and for this purpose, such sum as may be necessary is hereby
appropriated from the General Fund: provided, that the maximum amount
of the insured deposit of any depositor is hereby increased to One
hundred thousand pesos (P100,000.00)."
"(c) Whenever an insured bank shall have been closed
on account of insolvency payment of the insured deposits in such shall
be made by the Corporation as soon as possible either (1) by cash or
(2) by making available to each depositor a transferred deposit in
another insured bank in an amount equal to the insured deposit of such
depositor: provided, however, that the corporation, in its discretion
may required proof of claims to be filed before paying the insured
deposits, and that it any case where the Corporation is not satisfied
as to the viability of a claim for an insured deposit, it may require
the final determination of a court of competent jurisdiction before
paying such claim: provided, further, that failure to settle the claim
within six (6) months from the date of filing of the claim for insured
deposit shall, upon conviction, subject the directors, officers or
employees of the corporation responsible for the delay, to imprisonment
from six (6) months to one (1) year: provided, however, that the period
shall not apply if the validity of the claim requires the resolution of
issues of facts and or law by another office, body or agency including
the case mentioned in the first proviso or by the Corporation together
with such other office, body or agency.
"(d) The Corporation, upon payment of any depositor
as provided for in subsection (c) of this Section , shall be subrogated
to all rights of the depositor against the closed bank to the extent of
such payment. Such subrogation shall include the right on the part of
the Corporation to receive the same dividends and payments from the
proceeds of the assets of such closed bank and recoveries on account of
stockholders liability as would have been payable to the depositor on a
claim for the insured deposits but, such depositor shall retain his
claim for any uninsured portion of his deposit. All payments by the
corporation of insured deposits in closed banks partake of the nature
of public funds, and as such, must be considered a preferred credit
similar to taxes due to the National Government in the order of
preference under Article 2244 of the New Civil Code: provided, further,
that this preference shall be likewise effective upon liquidation
proceedings already commenced and pending as of the approval of this
Act, where no distribution of assets has been made."
SECTION 11. Section 11, subsection (d) of the same
Act is hereby amended to read as follows:
"(d) If, after the Corporation have given at least
three (3) months notice to the depositor by mailing a copy thereof to
his last known address appearing on the records of the closed bank, the
depositor in the closed bank shall fail to file a claim for his insured
deposit from the Corporation within eighteen (18) months after the
Monetary Board of the Central Bank of the Philippines shall have
ordered the closure of said bank, pursuant to Sec. 29 of R.A. 265 as
amended, all rights of the depositor against the Corporation with
respect to the insured deposit shall be barred, and all rights of the
depositor against the closed bank and its shareholders or the
receivership estate to which the Corporation may have become subrogated
shall thereupon revert to the depositor: provided, that the claimant
shall enforce his duly-filed claim against the Corporation within one
(1) year after the eighteen-month period heretofore mentioned.
Thereafter, the Corporation shall be discharged from any liability on
the insured deposit without prejudice to the rights of the claimants
against the closed bank and its shareholders or the receivership
estate: provided, further, that when practicable, the Board of
Directors may adopt other adequate means of notice to the
depositor."
SECTION 12. Section 12, subsection (c) of the same
Act is hereby amended to read as follows:
"(c) When the Corporation has determined that an
insured bank is in danger of closing, in order to prevent such closing,
the Corporation, in the discretion of its Board of Directors, is
authorized to make loans to, or purchase the assets of, or assume
liabilities of, or make deposits in, such insured bank, upon such terms
and conditions as the Board of Directors may prescribe, when in the
opinion of the Board of Directors, the continued operation of such bank
in essential to provide adequate banking service in the community or
maintain financial stability in the economy.
"The authority of the Corporation under the foregoing paragraph to
extend financial assistance to, assume liabilities of, purchase the
assets of an insured bank may also be exercised in the case of a closed
insured bank if the Corporation finds that the resumption of operations
of such bank is vital to the interest of the community or, a severe
financial climate exists which threatens the stability of a number of
banks possessing significant resources: provided, that the reopening
and resumption of operations of the closed bank shall be subject to the
prior approval of the Monetary Board.
"The Corporation may provide any Corporation acquiring control of,
merging or consolidating with or acquiring the assets of an insured
bank in danger of closing in order to prevent such closing or of a
closed insured bank in order to restore to normal operations, with such
financial assistance as it could provide an insured bank under this
subsection: provided, that, within sixty (60) days from a date of
assistance the Corporation shall submit a report thereof to the
Monetary Board.
"In all case, however, the Corporation, prior to the exercise of this
power, shall determine that actual payoff and liquidation thereof will
be more expensive than the exercise of this power. Finally, the
Corporation may not use its authority under this subsection to purchase
the voting or common stock of an insured bank but it can enter into and
enforce agreements that it determines to be necessary to protect its
financial interests."
SECTION 13. Section 13 of the same Act is hereby
amended to read as follows:
"The Corporation is authorized to borrow from the Central Bank of the
Philippines and the Central Bank is authorized to lend the Corporation
on such terms as may be agreed upon by the Corporation and the Central
Bank, such funds as in the judgment of the Board of Directors of the
Corporation are from time to time required for insurance purposes
including those provided for in Section 12(c) of this Act: provided,
that any such loan as may be granted by the Central Bank shall be
consistent with monetary policy; and provided further, that the rate of
interest thereon shall be fixed by the Monetary Board but shall not
exceed the treasury bill rate.
"When in the judgment to the board of Directors the funds of the
Corporation are not sufficient to provide for an emergency or urgent
need to attain the purposes of this Act, the Corporation is likewise
authorized to borrow money, obtain loans or arrange credit lines or
other credit accommodations from any bank designated as depository or
fiscal agent of the Philippine Government: provided, that such loan
shall be of short term duration."
SECTION 14. Section 16, subsections (a), (d), (e) and
(f) of the same Act is hereby amended to read as follows:
"(a) Every insured bank shall display at each place
of business maintained by it a sign or signs, and shall include a
statement to the effect that its deposits are insured by the
Corporation in all its advertisements: provided, that the Board of
Directors may exempt from this requirement advertisements which do not
relate to deposits or when it is impractical to include such statement
therein. The Board of Directors shall prescribe by regulations the
forms of such signs and the manner of use. For each day an insured bank
continues to violate any provisions of this subsection or any lawful
provisions of said regulations, it shall be subject to a penalty of not
more than One thousand pesos (P1,000) which the Corporation may recover
for its use: provided, however, that the penalty of imprisonment for
not more than one (1) year or a fine of not exceeding Twenty thousand
pesos (P20,000.00) or both, in the discretion of the insured under the
provisions of this Act which shall in any manner, advertise or hold
itself out as having insured status for the purpose of making it appear
that its deposits are insured with the Corporation."
"(d) The Corporation may require an insured bank to
provide protection and indemnity against burglary, defalcation, losses
arising from discharge of duties by, or particular acts of defaults of
its directors, officers, or employees, and other similar insurable
losses. The Board of Directors in consultation with the Central Bank,
shall determine the bonding requirement as it referred to directors,
officers and employers of the insured bank as well as the form and
amount of the bond. Whenever any insured bank refuses to comply with
any such requirement the Corporation may contract for such protection
and add the cost thereof to the assessment otherwise payable by such
bank."
"(e) Any assessment payable by an insured bank under
this Act shall be subject to payment of interest computed from the date
such assessment became due and payable and at the legal rate for loans
as prescribed by law or appropriate authority and in case of willful
failure or refusal to pay such assessment and interest thereon, there
shall be added a penalty equivalent to twice the amount of interest
payable as computed herein for each day such violations continue, which
the interest and penalty the Corporation may recover for its use:
provided, that the penalty shall not be applicable under the
circumstances stated in the provisions of subsection (b) of this
Section ."
"(f) The Board of Directors is hereby authorized at
its discretion to impose upon insured banks, their directors, and/or
officers, for any willful delay in the submission of reports as
required by law, rules and regulations; any refusal to permit
examination in the affairs of the institution; any willful making of a
false statement to the Corporation; any willful failure or refusal to
comply with, or violation of any provision of this Act, or any order,
instruction, or regulations issued by the Corporation or any commission
of irregularities, and/or conducting business in an unsafe or unsound
manner as may be determined by the Board of Directors, a fine not
exceeding One thousand pesos (P1,000.00) a day for each type of
violation, the imposition of which shall be final and executory until
reversed, modified or lifted by the Board of Directors."
SECTION 15. Transitory Provisions. — a) Authority to
Reorganize. — In view of the new powers and functions herein provided,
a reorganization of the Corporation is hereby authorized including
adopting a new staffing pattern for effective and efficient exercise
and performance of such powers and function.
The formulation of the program of reorganization shall be completed as
soon as possible and the implementation of such program within eighteen
(18) months after approval of this Act.
b) Implementing Details. — Organization and Staffing
of the Corporation. — Upon effectivity of this Act, the Secretary of
Finance, the incumbent President of the Corporation and the Governor of
the Central Bank shall constitute the Chairman and members of the Board
provided hereof. The President is hereby authorized subject to the
approval of the Board of Directors as appropriate, to issue such
orders, rules and regulations as may be necessary to implement the
reorganization authorized under the preceding section which will
involve the determination and adoption of (1) a new internal structure
of the Corporation as reorganized down to the divisional, section or
lowest reorganization levels; (2) a new staffing pattern including
appropriate salary rates.
The provisions of any law to the contrary notwithstanding, in the
implementation of the reorganization herein, and in appointments to
appropriate positions in the new staffing pattern of the Corporation,
no preferential or priority rights shall be given to or enjoyed by any
officer or personnel of the Corporation for appointment to any position
in the new staffing pattern not shall any officer or personnel be
considered as having prior or vested rights with respect to retention
in the Corporation or in any position as may have been created in its
new staffing pattern, even if he should be the incumbent of a similar
position therein.
Pending the completion of the personnel actions above provided and the
issuance of the appropriate implementing orders, all incumbent shall
continue to exercise their mutual functions, duties and
responsibilities.
SECTION 16. Any amount appropriated under the General
Appropriations Act or any other appropriation or supplemental
appropriation act shall be regularly released in accordance with the
allotment system established under existing law.
SECTION 17. All acts or parts of act, presidential
decrees, executive orders, administrative orders or parts thereof which
are inconsistent with the provisions of this Act are hereby repealed.
SECTION 18. This Act shall take effect upon its
approval.
Approved: April 13,
1992
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