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CA 459 Section 54

Section 54

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.

Read the full instrument → · Open the chapter this section belongs to: CHAPTER III.—Prohibition and Penalties →

Other provisions in CHAPTER III.—Prohibition and Penalties

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗ · Data as of July 4, 2026

CitationCA 459 Section 54 (LawPlayer, data as of July 4, 2026)

Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).

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