SEC. 36. The affairs and business of the Agricultural and Industrial Bank shall be directed and its property managed and preserved, unless otherwise provided in this Act, by a Board of Directors consisting of seven members to be appointed by the President of the Philippines, with the consent of the Commisison on Appointments of the National Assembly. If they are not officers or employees of the Government receiving a fixed compensation or salary from public funds, they shall be paid a per diem in no case to exceed twenty-five pesos for each session of the said Board of Directors attended by them.
SEC. 37. No director or employee of any private bank shall be eligible as member of the Board of Directors of the Agricultural and Industrial Bank.
SEC. 38. Within the first twenty days after the approval of this Act, and annually on the first Tuesday after the first Monday of March, beginning with the year nineteen hundred and forty, the President of the Philippines shall appoint the members of the Board of Directors. Immediately after their appointment, the Directors shall organize as such and elect from among themselves a Chairman and a Vice-Chairman. The latter shall assist the Chairman and act in his stead in the case of his absence or incapacity.
DUTIES AND POWERS OF THE BOARD OF DIRECTORS
SEC. 39. The Board of Directors shall have the following powers and duties.
(a) To fix, from time to time, the rate of interest to be charged by said Agricultural and Industrial Bank and have the same published in the central office;
(b) To fix different rates of interest on loans in accordance with the different classes of securities herein specified;
(c) To establish branches and agencies of the Bank in the provincial capitals and in those municipalities in which, in their judgment, industrial or agricultural needs may require it;
(d) To provide adequate personnel so as to deter mine promptly and at the least expense possible to the borrower the validity and sufficiency of the securities offered to guaranty the payment of the loans applied for.
SEC. 40. The branches and agencies of the Agricultural and Industrial Bank shall be authorized to exercise the powers conferred upon them by the Board of Directors and shall submit detailed reports of their operations as may be required by the central office at Manila.
SEC. 41. The officers, agents, and employees of said branches and agencies shall be appointed and may be removed in accordance with the provisions of sections forty-seven and forty-eight of this Act.
SEC. 42. With the authorization of the proper Department Secretary first had, the Board of Directors may appoint as agents, cashiers, or tellers of said Agricultural and Industrial Bank, the provincial or municipal treasurers, who shall receive such additional compensation as the Agricultural and Industrial Bank may determine, and shall be removable from office, not only as such agents, cashiers, or tellers, but also as such provincial and municipal treasurers by the President of the Philippines tor violation of the provisions of this Act or of by the by-laws of the Agricultural and Industrial Bank, or of any instruction received by them from said Bank.
GENERAL MANAGER AND ASSISTANT GENERAL MANAGERS
SEC. 43. The orders and resolutions of the Board of Directors shall be carried out by a General Manager, who shall be the chief executive of the Agricultural and Industrial Bank, and one or more Assistant General Managers, who shall assist the General Manager. Said officers shall be paid salaries to be fixed by the Board of Directors with the approval of the President of the Philippines. In the event of the absence of the General Manager or of his incapacity to act, the Board of Directors shall designate the Assistant General Manager who shall take his place. The General Manager and the Assistant General Managers shall be appointed by the Board of Directors, with the approval of the President of the Philippines, and may be removed in like manner.
DUTIES AND POWERS OF THE GENERAL MANAGER
SEC. 44. The General Manager of the Bank shall, among others, have the following powers and duties:
(a) To grant long term loans for agricultural or industrial purposes for periods of time not to exceed five years and in sums not exceeding fifty thousand pesos to any one person, company, corporation, or firm, but he is required to submit a report on each loan to the Board of Directors at its next succeeding session;
(b) To make, with the advice and consent of the Board of Directors, all contracts on behalf of the said Agricultural and Industrial Bank and to incur all necessary obligations by this Act required or permitted;
(c) To report weekly to the Board of Directors the main facts concerning the operations of the Agricultural and Industrial Bank during the preceding week and to suggest changes in rates of interest or of policy which may to him seem best;
(d) To furnish, upon request of the President of the Philippines, or the Secretary of Finance, any information in his possession regarding the operations of said Agricultural and Industrial Bank.
AUDITOR
SEC. 45. The Auditor-General shall be ex-officio auditor of the Agricultural and Industrial Bank and shall appoint and fix the salary of a representative who shall be the auditor in charge of the auditing office of the Agricultural and Industrial Bank. The Auditor-General shall, upon the recommendation of the Auditor of the Agricultural and Industrial Bank, appoint and fix the salaries of or remove the personnel of the Auditing Office. The operating expenses of the Auditing Office and the salaries and traveling expenses of the officers and employees thereof shall be payable by the Agricultural and Industrial Bank, and the Board of Directors shall make the necessary appropriation therefor. The representative of the Auditor-General shall make a quarterly report on the condition of the Bank to the President of the Philippines, through the Secretary of Finance, to the Speaker of the National Assembly, to the Auditor-General and to the Board of Directors of said Bank. The report shall contain, among other things, a statement of the resources and liabilities, including earnings and expenses, the amount of capital stock, dividends paid, surplus, reserve, and undivided profits, as well as the losses, bad debts, and suspended and overdue paper carried in the Bank's assets as of the date on which the statements are compiled.
LEGAL COUNSEL
SEC. 46. The Secretary of Justice shall be ex-officio attorney for said Agricultural and Industrial Bank and may, whenever he may deem it proper, in specific cases delegate his duties to the Solicitor-General, the Fiscal of the City of Manila, or any provincial fiscal. The Board of Directors of said Bank, with the approval of the Secretary of Justice, shall have the power to employ such additional attorney as may be necessary.
OTHER OFFICERS AND EMPLOYEES
SEC. 47. All the other officers and employees of the Agricultural and Industrial Bank shall be appointed and removed by the Board of Directors, on recommendation of the General Manager.
SEC. 48. Said officers and employees shall not be subject to the Civil Service Law, and their duties and compensation shall be fixed by the General Manager, with the approval of the Board of Directors.
FIDELITY INSURANCE OF OFFICERS
AND EMPLOYEES
SEC. 49. The officers and employees of the Agricultural and Industrial Bank, including those of its branches and agencies, whose duties require the custody of funds or property for which they are accountable, shall be bonded and their fidelity insured in accordance with the provisions of the Public Bonding Law.
LIFE INSURANCE OF OFFICERS AND EMPLOYEES
SEC. 50. The regular and permanent officers and employees of the Agricultural and Industrial Bank and of its branches and agencies in the Philippines shall be regular members of the Government Insurance System.
EXAMINATION OF THE BANK
SEC. 51. The Bank Commissioner shall exercise supervisory powers over the Agricultural and Industrial Bank in accordance with the provisions of the Administrative Code.
CONFIDENTIAL INFORMATION
SEC. 52. The Auditor-General and the other officers designated by him or by the President to inspect or investigate the condition of the Agricultural and Industrial Bank, shall not reveal to any person other than the President, the Secretary of Finance, and the Board of Directors the details of such inspection or investigation, nor shall they give any information relative to the funds or properties in its custody belonging to private individuals, corporations, or any other entity except by order of a court of competent jurisdiction.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
