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RA 337 Section 55

Section 55

SEC. 55. At least once a year the profits on all business transacted shall be determined by the board of directors and apportioned to all the shares in each series outstanding at the time of such apportionment on the basis of the actual value of such shares, as distinguished from their withdrawal value, but in determining the profits which may be so apportioned, there shall be deducted from the gross earnings of the association all expenses and losses incurred in conducting its business. Five per cent (5%) of the net earnings shall be credited to a reserved account until the reserve equals five per cent (5%) of the total assets of the association. The reserve shall be maintained at five per cent (5%) of the total assets and shall be available for meeting losses incurred by the association. The remainder of the net earnings shall be available for apportionment among the stockholders. In the event of the liquidation of a building and loan association there shall escheat to the State any part of the reserve remaining after charging off all losses and defraying all expenses of liquidation.

Read the full instrument → · Open the chapter this section belongs to: CHAPTER VI.—Building and Loan Associations →

Other provisions in CHAPTER VI.—Building and Loan Associations

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗ · Data as of 2026-07-04

CitationRA 337 Section 55 (LawPlayer, data as of 2026-07-04)

Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).

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