Section 70
SEC. 70. In the case of Philippine branches of foreign banks, the present section shall replace sections twenty-three and thirty-two of this Act. Except as the Monetary Board may otherwise provide, the total liabilities of any person, or of any company, corporation, or firm, to the Philippine branch of a foreign bank for money borrowed, with the exception of money borrowed against obligations of the Central Bank or of the Philippine Government, or borrowed with the full guarantee by the Government of payment of principal and interest, shall at no time exceed fifteen per cent (15%) of the sum of: The net amount due by such branch to the head office and branches outside the Philippines, and The total capital accounts, if any, representing funds definitely assigned to the branch by the head office. The liabilities of any borrower may amount to a further fifteen per cent (15%) of the two items mentioned in subsections (a) and (6) of this section, provided the additional liabilities are adequately secured by shipping documents, warehouse receipts or other similar documents transferring or securing title covering readily marketable, nonperishable staples, which staples must be fully covered by insurance, and must have a market value equal to at least one hundred and twenty-five per cent (125%) of such additional liabilities.nona The term "liabilities" as used herein, shall mean the direct liability of the maker or acceptor of paper discounted with or sold to such bank and the liability of the indorser, drawer, or guarantor who obtains a loan from or discounts paper with or sells paper under his guaranty to such bank and shall include in the case of liabilities of a copartnership or association the liabilities of the several members thereof and shall include in the case of liabilities of a corporation 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 purposes of this section. Whenever, and to the extent that, the head office of a Philippine branch of a foreign bank guarantees the repayment of liabilities of its branch, the limitation established in this section shall not apply. Moreover, nothing in this Act shall be construed as restricting in any manner loans made by the Philippine branch of a foreign bank for the account of, and with funds supplied by, its head office or branches outside the Philippines, but the Monetary Board may require that all such loans be reported to it in accordance with such rules and regulations as it may issue on the subject.