Section 10
SEC. 10. The following general provisions are hereby inserted after section one hundred ninety and one-seventh of said Act Numbered Fourteen hundred and fifty-nine, as amended: PROVISIONS AFFECTING BANKING INSTITUTIONS IN GENERAL "SEC. 190 2/7. No savings and mortgage bank, commercial banking corporation, trust corporation, building and loan association, or any other banking institution subject to the supervision of the Bureau of Banking, shall enter directly or indirectly into any contract of guaranty or surety ship or shall guarantee the interest or principal of any obligation of any other person, firm, company, association, corporation or other entity. The provisions of this section shall not, however, be held to apply to the borrowing of money by any such institution through the re-discounting of its receivables or otherwise as may be permitted by law nor to the granting or guaranteeing of acceptance credits in the ordinary course of business of any such institution. Nor shall the provisions of this section apply to the certification of checks or to transactions involving the release of documents attached to items received for collection nor to any other transaction which may properly be regarded as coming within the common usage and practice of commercial banking institutions. "SEC. 190 3/7. No bank, banking institution, or building and loan association organized under the laws of the Philippine Islands shall hereafter open a branch or branches without first having obtained the written approval of the Bank Commissioner to the opening of such branch or branches, which written approval shall be given unless he has evidence to show that the establishment of the proposed branch or branches will be prejudicial to the interest of the public, in which case he shall state in writing his reasons for refusing to give the approval. In case of the refusal of the Bank Commissioner to give such approval, the parties applying therefor may appeal to the Secretary of Finance as provided by section one hundred ninety and six-sevenths hereof. "SEC. 190 4/7. After the date of the approval of this Act, no person, association or corporation not conducting the business of a savings and mortgage bank, commercial banking corporation, trust corporation or building and loan association as denned in this Act shall advertise or hold itself out as being engaged in the business of such an institution, or use in connection with its business title the word or words 'bank,' 'banking,' 'banker,' 'building and loan association,' 'trust corporation' or words of similar import, or solicit or receive deposits of money for deposit, disbursement, safe-keeping, or otherwise, or transact in any manner the business of any such institution without having first complied with the provisions of this Act in so far as it relates to sayings and mortgage banks, commercial banking corporations, trust corporations or building and loan associations, as the case may be. For any violation of the provisions of this section by a corporation, the officers and directors thereof shall be jointly and severally liable. Any violation of the provisions of this section shall be punished by a fine of five hundred pesos for each day during which such violation is permitted or repeated, and in default of the payment thereof by subsidiary imprisonment as prescribed by law. "Section one hundred thirty of Act Numbered One thousand four hundred fifty-nine, as amended, is hereby repealed. "SEC. 190 5/7. In the case of the voluntary liquidation of any bank, banking institution, or building and loan association incorporated under the laws of the Philippine Islands or of any Philippine branch of a foreign bank or banking institution, written notice of such liquidation shall be sent to the Bank Commissioner before such liquidation shall be undertaken, and the Bank Commissioner shall have the right to intervene and take such steps as may be necessary to protect the interests of the creditors. "SEC. 190 6/7. Any opinion, decision, ruling, or regulation made or issued by the Bank Commissioner under the provisions of this Act may be appealed to the Secretary of Finance who shall have the power and authority either to confirm, modify, or repeal such opinion, decision, ruling, or regulation made or issued as aforesaid; and the action of the Secretary of Finance in the premises shall be final, unless modified or reversed by the Governor-General."