Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails.・Read the official text ↗
SEC. 68. In the case of a foreign bank which has more than one branch or agency in the Philippines, all such branches and agencies shall be treated as a unit for the purpose of this Act, and all references to Philippine branches and agencies of foreign banks shall be held to refer to such units.
SEC. 69. In the case of Philippine branches of foreign banks, the provisions of this section shall replace those of sections twenty-two and thirty of this Act, except insofar as is specified to the contrary in the last paragraph of this section. In order to provide effective protection of the interests of the depositors and other creditors of Philippine branches of foreign banks, the head office of such branches shall fully guarantee the prompt payment of all liabilities of its Philippine branch. The Monetary Board shall from time to time direct the Superintendent of banks to make such investigations as it may deem necessary to ascertain that the aforesaid guarantee by the head office represents effective protection of the depositors and other creditors of the branch. Should the investigations of the Superintendent of banks indicate that said guarantee is in adequate, the Monetary Board may take such measures as it is authorized to take in the case of capital deficiencies, under the provisions of the third paragraph of section twenty-two of this Act. The Board may, further, as long as the guarantee of the head office is deemed inadequate, require the head office to assign to its Philippine branch an amount of capital sufficient to meet the minimum capital requirement established in section twenty-two of this Act. Nothing in this section shall be held to prevent a branch of a foreign bank from assignment capital to its Philippine branch, and from being governed by the provisions of section twenty-two or thirty, as the case may be, instead of by the provisions of this section. In such cases, the term "capital accounts" shall be held to include all net amounts due by the branch to its head office and to other branches thereof outside the Philippines.
SEC. 70. In the case of Philippine branches of foreign banks, the present section shall replace sections twenty-three and thirty-two of this Act. Except as the Monetary Board may otherwise provide, the total liabilities of any person, or of any company, corporation, or firm, to the Philippine branch of a foreign bank for money borrowed, with the exception of money borrowed against obligations of the Central Bank or of the Philippine Government, or borrowed with the full guarantee by the Government of payment of principal and interest, shall at no time exceed fifteen per cent (15%) of the sum of: The net amount due by such branch to the head office and branches outside the Philippines, and The total capital accounts, if any, representing funds definitely assigned to the branch by the head office. The liabilities of any borrower may amount to a further fifteen per cent (15%) of the two items mentioned in subsections (a) and (6) of this section, provided the additional liabilities are adequately secured by shipping documents, warehouse receipts or other similar documents transferring or securing title covering readily marketable, nonperishable staples, which staples must be fully covered by insurance, and must have a market value equal to at least one hundred and twenty-five per cent (125%) of such additional liabilities.nona The term "liabilities" as used herein, shall mean the direct liability of the maker or acceptor of paper discounted with or sold to such bank and the liability of the indorser, drawer, or guarantor who obtains a loan from or discounts paper with or sells paper under his guaranty to such bank and shall include in the case of liabilities of a copartnership or association the liabilities of the several members thereof and shall include in the case of liabilities of a corporation of all subsidiaries thereof in which such corporation owns or controls a majority interest. But the discount of bills of exchange drawn in good faith against actually existing values, and the discount of commercial or business paper actually owned by the person negotiating the same, shall not be considered as money borrowed, for the purposes of this section. Whenever, and to the extent that, the head office of a Philippine branch of a foreign bank guarantees the repayment of liabilities of its branch, the limitation established in this section shall not apply. Moreover, nothing in this Act shall be construed as restricting in any manner loans made by the Philippine branch of a foreign bank for the account of, and with funds supplied by, its head office or branches outside the Philippines, but the Monetary Board may require that all such loans be reported to it in accordance with such rules and regulations as it may issue on the subject.
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).