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Republic Act No.7353: An Act Providing for the Creation, Organization and Operation of Rural Banks, and for Other Purposes
An Act for the constitution of rural banks passed
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11 pages
This document articulates about the Act that was passed in the Republic of Philippines for the creation, organization, and operation of rural banks. It states that the objective of the Act was to encourage and assist the establishment of rural banking system that would make credit readily available in the rural areas on reasonable terms.
The document describes the different provisions and restrictive features of the Act. These include:
- Formulation of necessary regulations governing the establishment and operation of rural banks by the Monetary Board of the Central Bank of Philippines;
- Mandatory certificate of authority from the Monetary Board for rural banks to operate;
- Restrictions on bank to stand as guarantors or as surety for loans from the employee bank or any other banks;
- Purposes for which the loan application could be made, kinds of mortgages that were permissible against different loan amount;
- Powers of the Central Bank of Philippines with regard to the formulation of rules and regulations as well as for enforcement of bank related laws;
- Details about mergers and consolidation of rural banks in a given area and the incentives for the same.
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