Section 7
SEC. 7. Section nine of the Republic Act Numbered Thirteen hundred, as amended, is further amended to read as follows: "BOARD OF DIRECTORS" "SEC. 9. The Board of Directors shall have, among other duties, powers and authority: "(a) To formulate policies necessary to carry out effectively the provisions of this Act and adopt such by-laws, rules and regulations for the effective operation of the Bank, in conformity with this Act and existing laws; "(b) To establish branches or agencies in other countries and at such points within the Philippines as it may deem advisable, which shall perform functions as may be delegated to them by the Board of Directors: Provided, however, That there shall be established branch banks or agencies in every provincial capital. AND PROVIDED, FINALLY, THAT THE BANK SHALL NOT OPEN BRANCHES, AGENCIES OR EXTENSION OFFICES WITHOUT PRIOR APPROVALOF THE MONETARY BOARD OF THE CENTRAL BANK OF THE PHILIPPINES. "With the authorization of the proper department Secretary first had, the Board of Directors may appoint as agents of said Bank, the provincial or municipal treasurers, who shall receive such additional compensation as the Board may determine." "(c) To adopt an annual budget for the effective operation and administration of the Bank, the expenses for personnel of which shall not exceed thirty (30%) per cent of the gross income of the Bank for the preceding calendar year, including all salaries, allowances, benefits and other emoluments of whatever kind or nature."