Lending Limits.
Section 5
SEC. 5. Lending Limits. — Said Amanah Bank shall observe the following limits in its lending operations: the total liabilities of any person, company, corporation or firm, excluding loans or credits prescribed by law or by the Monetary Board as non-risk assets, shall at no time exceed fifteen percent (15%) of the unimpaired capital and surplus of the Bank. The total liabilities of any borrower may amount to a further fifteen percent (15%) of the unimpaired capital and surplus of the Bank provided that the additional liabilities are adequately secured by shipping documents, warehouse receipts or other similar documents transferring or securing title covering readily marketable, non-perishable staples which staples must be fully covered by insurance, and must have a market value equal to at least one hundred and twenty-five percent (125%) of" such additional liabilities. The term liabilities as used herein shall mean the direct liability of the maker or the acceptor of paper discounted with or sold to the Bank and the liability of the indorser, drawer or guarantor who obtains a loan from or discounts paper with or sells papers under the guaranty to the Bank and shall include in the case of the liabilities of a co-partnership or association the liabilities of the several members thereof and shall include in the case of the liabilities of a corporation all liabilities of all subsidiaries thereof in which such corporation owns or controls a majority interest. But the discount of bills of exchange drawn in good faith against actually existing values, and the discount of commercial or business paper actually owned by the person negotiating the same, shall not be considered as money borrowed, for the purpose of this Section. Loan accommodations granted by the Amanah Bank to any other bank licensed to do business in the Philippines, shall be subject to the loan limit to any single borrower as herein prescribed. no director or officer of the Bank shall, either directly or indirectly, for himself or as the representative or agent of others, borrow any of the deposits or funds of the Bank, nor shall he become a guarantor, indorser, or surety for loans from the Bank to others, or in any manner to be an obligor for money borrowed from the Bank or loaned by it, except with the written approval of the majority of the directors of the Bank, excluding the director concerned. The credit accommodation to such director or officer of this Bank which the Board of Directors may authorize shall in no case exceed his outstanding deposits or the book value of his paid-in capital in the Bank. Any such approval shall be entered upon the records of the Bank and a copy of such entry shall be transmitted forthwith to the appropriate supervising department of the Central Bank of the Philippines. The office of any director or officer of the Bank who violates the provisions of this Section shall immediately become vacant and the director or officer shall be subject to criminal prosecution and suffer the penalties provided by law; the outstanding credit accommodation which the Bank may extend to stockholders, other than the Government of the Republic of the Philippines, its agencies and instrumentalities, owning more than two percent (2%) or more of the subscribed capital stock of the Bank, shall be limited to an amount equivalent to their outstanding deposits and book value of their paid-in capital contribution in the Bank. OFFICERS AND EMPLOYEES