Capital.
Section 123
SEC. 123. Capital.— The Philippine National Cooperative Bank shall have an authorized capital of ten million pesos (P10,000,000) divided into shares of one hundred pesos par value each. The shares shall be divided into two groups marked series "A" and series "B". Series "A" shall comprise of five million pesos (P5,000,000) to be subscribed for by the Government of the Philippines. On registration of the Philippine National Co-operative Bank, the Philippine Government shall pay towards subscription of the said amount, one million pesos (P1,000,000) and the balance shall be paid in each year on a fund-matching basis with the owned capital of the Philippine National Cooperative Bank. The owned capital shall include share capital under clause (b) of this section, reserve fund and other funds set apart in accordance with this Act and excludes payments received from the Philippine Government under this clause. The shares held by the Philippine Government shall not be entitled to any interest or votes. Series "B" shall comprise of five million pesos (P5,000,000) to be subscribed for by the affiliated co-operatives and individual members. If the Philippine National Co-operative Bank does not have sufficient owned capital to receive further payments towards capital by the Philippine Government on fund-matching basis under clause (a) of this section, the Government of the Philippines may authorize the said bank to issue debentures under subsection (2) of section seventy-seven of this Act. Each provincial co-operative bank shall have an initial authorized capital of one million pesos (P1,000,000) divided into shares of one hundred pesos par value each. The shares shall be divided into two groups marked series "A" and series "B". Series "A" shall comprise of five hundred thousand pesos (P500,000) to be subscribed for by the Government of the Philippines. On registration of each provincial co-operative bank, the Government shall pay towards subscription of the said amount one hundred thousand pesos (Pl00,000) and the balance shall be paid in each year on the fund-matching basis with the owned capital of the provincial co-operative bank. The owned capital shall be as mentioned in clause (a) of subsection (1). The Government may provide its share of capital contribution under this clause by directing the Central Bank of the Philippines to extend the same benefits as are extended to the rural banks under the Rural Bank Act, without contravening the co-operative basis or the provisions of this Act. The shares held by the Government shall not be entitled to any interest or votes while contribution towards shares if paid in under the Rural Bank Act shall be entitled only to interest as provided under the Rural Bank Act. Series "B" shall comprise of five hundred thousand pesos (P500,000) to be subscribed for by the affiliated co-operatives and individual members. The by-laws of every co-operative bank shall specify a percentage of each loan borrowed by affiliated cooperatives to be invested as share capital in the lending co-operative bank.