Section 124
SEC. 124. If losses have at any time been sustained by any such bank equal to or exceeding the undivided profits on hand, no dividend shall be made; and no dividend shall ever be made by any such bank while it continues in banking operations, to an amount greater than its net profits then on hand, deducting therefrom its losses and bad debts. All debts due to any bank, on which interest is past due and unpaid for a period of six months, unless the same are well secured, and in process of collection, shall be considered bad debts within the meaning of this section. SEC:. 125. Every such bank shall at all times have on hand, in lawful money of the Philippine Islands or of the United States, an amount equal to at least twenty per centum of the aggregate amount of its deposits in all respects. The term "lawful money of the Philippine Islands" shall include silver certificates issued under' authority of Act Numbered Nine hundred and thirty-eight, ordinarily called the "Gold Standard Act," and gold certificates should the issue thereof be authorized for the Philippine Islands by the Congress of the United States, and the term "lawful money of the United States" shall include gold and silver certificates of the United States and bank notes issued by national banks in the United States: Provided, however, That in case of a bank having branches as provided in section one hundred and twenty-eight of this Act the provision for a twenty per centum reserve shall be deemed to be complied with if the principal bank and its branches in the aggregate have on hand twenty per centum in lawful money of the aggregate amount of the deposits in the principal bank and all of its branches.