Section 1
SECTION 1. Section 3 (b) of Republic Act Numbered Thirty-Five Hundred Eighteen is amended to read as follows: "(b) At least fifty-one percent (51%) of the capital stock of the Veterans Bank shall be divided into common shares which shall be fully subscribed by the Government of the Republic of the Philippines for and in behalf of the veterans, their widows, orphans or compulsory heirs as defined and determined under Section 4, Subsection (c) of this Act, and shall be initially paid from the Veterans Trust Fund provided for in Section 2, Subsection (d) of Republic Act Numbered Seventeen Hundred and Eighty-Nine, as amended, and from out of earnings, dividends or profits from the operations of the Veterans Bank and for the payment of said subscription, all the available cash deposits with the Philippine National Bank and/or any other banks to the credit of the Veterans Trust Fund shall be transferred immediately to the Veterans Bank: Provided, That after the approval of this Act and notwithstanding the provisions of any existing law and/or executive orders, rules and regulations to the contrary every and all additional cash payments on account of the said Veterans Trust Fund shall be remitted and paid directly and exclusively to the said Veterans Bank to be applied as additional paid-up payments of the aforesaid common shares subscription: Provided, further, That the Reparations Commission shall remit in full to the Veterans Bank the balance of Twenty Million Dollars Veterans Trust Fund, and if the accumulated proceeds of the said fund should be insufficient to cover in full the said balance, the Reparations Commission is hereby authorized to cover the deficiency from any funds under its custody: Provided, furthermore, That nothing shall be transferred to, or received by, the said Veterans Bank representing any portion of the proceeds of the aforesaid Veterans Trust Fund except cash payments of the peso equivalent thereof at the prevailing rate of exchange at the time the Reparations Commission received such funds from the source. The shares shall be divided equally among the veterans at the rate of one share of one hundred pesos for each veteran or fraction thereof. The balance of about forty-nine (49%) percent shall be divided into preferred shares which shall be opened for subscription by any recognized veteran, widow, orphans or compulsory heirs of said veterans at the rate of one (1) preferred share per veteran: Provided, That in case of failure of any particular veteran to subscribe to any preferred share of stock so offered to him as herein provided, within thirty (30) days from date of receipt of notice, said share of stock shall be available for subscription to other veterans in accordance with such rules or regulations as may be promulgated by the Board of Directors. Any share of stock corresponding to the capital stock subscribed and paid by the Republic of the Philippines in the manner aforementioned, shall be issued in the name of the Republic of the Philippines, in trust for the benefit of veterans, their widows, orphans or compulsory heirs as determined in this Act, and any share of stock subscribed and paid by individual Veteran shall be issued in the name of the individual veteran, his widow, orphan or compulsory heir. The sale or transfer of a share of stock of a veteran, widow, orphan or compulsory heir of a veteran shall not be allowed under any circumstances. Any share may be sold or transferred to the Bank which shall issue the same to the stockholders who are veterans, their widows, orphan or compulsory heir: Provided, That no veteran, widow, orphan or compulsory heir shall be issued a total of more than one hundred shares."