Section 4
SEC. 4. Section 22 of the same Act is amended to read as follows: "SEC. 22. Allocation of Net Profits. — At the close of each calendar year, the Bank shall determine the result of its operations, in the determination of which, adequate allowances shall be made for probable losses, and the resulting net profits after taxes shall be distributed as follows: "(a) Twenty percent (20%) of such net profit shall accrue to the reserve account: Provided, That should the accumulated reserves equal the authorized capital of the Bank, the twenty percent (20%) herein authorized shall cease to accrue to the reserve account but shall be distributed pursuant to the subsection immediately following: "(b) From the remaining eighty percent (80%) of the net profit shall be deducted the guaranteed earnings of the preferred shares of stock owned by the individual veterans, their widows, orphans or compulsory heirs: Provided, That the share in the net profits corresponding to the Republic of the Philippines shall first be applied in payment of the Capital Stock subscription, until said shares shall have been fully paid. Thereafter, fifteen per centum (15%) of the net profit after deducting the guaranteed earnings of the preferred shares shall be paid in cash and be held strictly as Trust Fund by the Board of Trustees as hereinafter provided in Section 23 hereof and shall be available exclusively for 'grants-in-aid' to veterans, their widows, orphans or compulsory heirs, for educational, social, charitable, and rehabilitation purposes, to organizations doing services for the cause of the veterans, and for such other purposes beneficial to the veterans: Provided, however, That the equivalent of not to exceed five percent (5%) of every annual cash payment made to the Board of Trustees as aforesaid shall be available for expenses of administration, office equipment and supplies, actual and necessary expenses incurred by members of the Board of Trustees either in attendance upon meeting of the Board or upon other official business authorized by resolution thereof, and for fixed compensation of a Board Secretary and such other officials and employees of said Board of Trustees: Provided, further, That no amount of grants-in-aid exceeding Five Hundred Pesos (P500.00) shall be granted to any indigent veteran, widow, orphan or compulsory heir under such rules and regulations promulgated by the Board of Trustees: and Provided, furthermore, That any and all expenditures of said trust funds shall be subject to audit by the Auditor of the Department of National Defense in accordance with generally accepted accounting practices. The Auditor of the Department of National Defense shall serve as ex officio Auditor of the Board of Trustees. "After paying the share of the Board of Trustees of the veterans of World War II, such percentage of the net profits shall be paid in cash to the Veterans Federation of the Philippines as shall be deemed necessary to fund its operations and attain the objectives set forth in R.A. No. 2640: Provided, That any and all expenditures of said fund by the Veterans Federation of the Philippines shall be subject to audit by the Auditor of the Department of National Defense in accordance with the generally accepted accounting practices, and a report of such audit be submitted to the Secretary of National Defense. "The balance may be distributed as dividends to holders of common stocks: Provided, That no dividends shall be distributed until full payment of the subscribed common shares of stocks."