Section 13
SECTION 13. The Board of Directors shall have, among others, the following duties, powers and authority: To formulate policies necessary to carry out effectively the provisions of this Decree and adopt such by-laws, rules and regulations for the effective operation of the Bank, in conformity with this Decree and existing laws; To adopt an annual budget for the effective operation and administration of the Bank: Provided that the expenses for its personnel shall not exceed thirty per cent (30%) of the gross income of the Bank for the preceding calendar year, including all salaries, allowances, benefits and other emoluments of whatever kind and nature; To create, establish and operate a "Self-Insurance System" in order to offset possible damage or loss of cash-in-transit that the Bank may suffer on account of cash and check remittances to its branches and agencies and vice-versa, as well as those that may arise from irregular encashment or negotiation of checks, drafts, telegraphic transfers and similar instruments, or losses arising from other forms of fraud; To create and establish a "Provident Fund" which shall consist of contributions made both by the Bank and its officers or employees to a common fund for the payment of benefits to such officer or employee or his heirs under such terms and conditions as the Board of Directors may fix; In its discretion, to accept assignments of, or as payments, certificates of indebtedness of the Government or other such similar securities: Provided, however, that the authority herein granted shall not be used as regards backpay certificates: Provided, further, that if, for any reason whatever, the Bank is compelled by statute to accept assignments of, or as payment, certificates of indebtedness, bonds or other such similar Government securities, such certificates, bonds or securities can be used by the Bank in payment of any and all taxes; To compromise or release, in whole or in part, any claim or settled liability to the Bank regardless of the amount involved, under such terms and conditions it may impose to protect the interests of the Bank. This authority to compromise shall extend to claims against the Bank; To prescribe such terms and conditions for loans and credits as may be deemed necessary, consistent with the provisions of this Charter; To determine the procedure and requirement for the acquisition of properties necessary for the business of the Bank; To dispose of properties of the Bank, whether used in the conduct of its business or acquired as a result of its banking operations, by public bidding or private negotiated sale upon such terms and conditions as it may impose. PRESIDENT - POWERS AND DUTIES