SEC. 53. No officer or employee of the Agricultural and Industrial Bank nor any Government official who may exercise executive or supervisory authority over the said Bank, either directly or indirectly, shall borrow money from the Bank, nor shall he become a guarantor, indorser, or surety for loans from the said Bank to others, or in any manner be an obligor for moneys borrowed of the said Bank or loaned by it. Any such officer or employee who knowingly violates the provisions of this section shall immediately be removed by competent authority and said officer or employee shall be punished by imprisonment not exceeding five years and by a fine of not less than one thousand nor more than five thousand pesos.
SEC. 54. No loan shall be granted by the Agricultural and Industrial Bank to a corporation, partnership, or company wherein any member of its Board of Directors is a shareholder, agent or employee in any manner, except by the unanimous vote of the members of the Board, excluding the member interested. The total liabilities to the Agricultural and Industrial Bank of any corporation wherein any of the members of the Board of Directors is a shareholder, agent, or employee in any manner, shall at no time exceed five per centum of the paid-up capital of the Bank. Any director of the Agricultural and Industrial Bank who knowingly violates the provisions of this section shall immediately be removed by the President of the Philippines and he shall, furthermore, be punished as provided in the next preceding section.
SEC. 55. No fee, commission, gift, or charge of any kind shall be exacted, demanded, or paid, for obtaining loans from the Agricultural and Industrial Bank and any officer, employee, or agent of the Agricultural and Industrial Bank exacting, demanding, or receiving any fee for service in obtaining a loan, shall be punished by a fine of not less than one hundred nor more than six thousand pesos or imprisonment for not less than one month nor more than three years, or both, at the discretion of the court.
SEC. 56.. Anyone who, for the purpose of obtaining, renewing, or increasing a loan or the extension of the period thereof in his own or another's behalf, should give out any false information with regard to the identity, situation, production, or value of the security, or with regard to a point which would affect the granting or denial of the loan, whether the latter has been consummated or not, and every officer or employee of the Agricultural and Industrial Bank, who, through connivance or negligence, should allow by action or omission such false information to pass unnoticed, thereby causing damage to the Bank or exposing the latter to the danger of suffering such damage, shall be punished with imprisonment for not less than three months nor more than three years, and a fine not less than the amount of the loan obtained or desired nor more than three times such amount.
SEC. 57. Any officer or employee of the Agricultural and Industrial Bank who knowingly violates, or permits any of the officers, agents, or servants of said Bank or any other person to violate any of the provisions of this Act not specially punished in the preceding sections, and any person violating any provision of this Act or aiding and abetting the violation thereof, shall be punished with a fine not to exceed ten thousand pesos or with imprisonment not to exceed five years, or both, at the discretion of the court.
SEC. 58. This Act shall take effect upon its approval. APPROVED, June 9, 1939.
Annotations: The Agricultural and Industrial Bank subsequently became the Rehabilitation Finance Corporation (R.A. No. 85 as amended), and is now known as the Development Bank of the Philippines. (As amended by R.A. Nos. 2081, 3147, 3517.)
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
