R.A. 3147

REPUBLIC ACT No. 3147

AN ACT TO FURTHER AMEND REPUBLIC ACT NUMBERED EIGHTY-FIVE, AS AMENDED BY REPUBLIC ACT NUMBERED TWO THOUSAND EIGHTY-ONE, CREATING THE DEVELOPMENT BANK OF THE PHILIPPINES.

Section 1. Section two of Republic Act Numbered Eighty-five, as amended by Republic Act Numbered two thousand eighty-one, is further amended to read as follows:

"Sec. 2. Corporate power. The Development Bank of the Philippines shall have the power:

Section 2. Section four of said Act, as amended, is further amended to read as follows:

"Sec. 4. Loans. The Bank may grant loans against security of real estate and/or other acceptable assets including, subject to the provision of existing laws, leasehold rights and permits from the government: Provided, That not more than forty-five per cent of its authorized capital stock shall be available for industrial loans, not more than thirty-five per cent of such capital stock shall be available for agricultural loans and not more than twenty per cent of such capital stock shall be available for miscellaneous loans including loans for home building or home financing projects: Provided, further, That the same proportion hereinabove stated shall be observed in the granting of loans for industrial, agricultural and miscellaneous purposes: Provided, further, That of the amount available for agricultural loans, not more than twenty per cent thereof shall be made available for any agricultural crop and that of the latter amount not more than five per cent thereof shall be loaned to any individual, association or corporation: Provided, further, That no person shall be granted a loan for home building in excess of thirty thousand pesos: Provided, further, That when the interest of the national economy so requires and upon approval of the President of the Philippines for a specified and limited period, the proportions hereinabove stated need not be observed in the granting of loans: Provided, further, That any provision of law to the contrary notwithstanding, the bank is authorized to grant loans on the security of real estate without torrens title if the real estate has been declared for purposes of taxation continuously for at least ten years and the applicant for loan and his predecessors in interest have been in continuous and uninterrupted possession thereof in the concept of owner for at least ten years, such possession to be established by affidavits of the owners of all the properties adjoining such real estate and other evidences that the Board of Governors may deem necessary: Provided, finally, That the bank may invest funds for the purchase of such mortgage bonds as the Philippine National Bank shall issue for the grant of medium and long-term development loans, which bonds must be guaranteed by the government both as to principal and interest."

Section 3. Section twenty-three of said Act, as amended, is further amended to read as follows:

"Sec. 23. No officer or employee of the bank nor any government official who may exercise executive or supervisory authority over the said bank, either directly, or indirectly, for himself or as the representative or agent of others shall, except when the same shall be in the form of advances appropriated or set aside by the bank itself in order to provide for housing for the benefit of its officials and employees, borrow money from the bank, nor shall become a guarantor, indorser, or surety for loans from the said bank to others, or in any manner be an obligor for moneys borrowed from said bank. Any such officer or employee who violates the provisions of this section shall be immediately removed by competent authority and said officer or employee shall be punished by imprisonment of not less than one year nor exceeding five years and by a fine of not less than one thousand nor more than five pesos."

Section 4. This Act shall take effect upon its approval.

Approved: June 17, 1961