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45

#6 !)7789'%#" ,#*-:$ .!5
- Exeicise the geneial poweis inciuent to a coipoiations
- Shall have all poweis as may be necessaiy to caiiy on business
of commeicial banking:
a. Accepting uiafts anu issuing letteis of cieuit
b. Biscounting anu negotiating piomissoiy notes, uiafts,
bills of exchange anu othei eviuence of uebt
c. Accepting oi cieating uemanu ueposits
u. Receiving othei types of ueposits anu ueposits
substitute
e. Buying anu selling foieign exchange anu golu oi silvei
bullion, acquiiing maiketable bonus anu othei uebt
secuiities
f. Extenuing cieuit, subject to such iules as the Nonetaiy
Boaiu may piomulgate
! See section 29 of uBL anu chaptei 4 foi
uiscussion of opeiations.
b. /*%;89$#" ,#*-$ ./5
- They aie laige banks licenseu by Bangko Sential ng Pilipinas to
uo both commeicial anu investment banking.
- In auuition to the poweis of commeicial bank, a univeisal bank
can exeicise the poweis of an investment house as well as
invest in non-allieu enteipiises.
- A univeisal bank may peifoim the functions of an investment
eithei uiiectly (thiough a sepatate anu uistinct uepaitment oi
within the unit if the bank) oi inuiiectly (thiough a sepaiate
subsiuiaiy investment house). In eithei case, the unueiwiiting
of equity secuiities oi secuiities uealing will be subject to
peitinent laws, as well as applicable iegulations of the SEC.

c. 0<9%&( ,#*-$ .05
- Asiue fiom the poweis confeiieu on it by othei laws, a thiift
bank namely a savings anu moitgage bank, a stock savings anu
loan association oi a piivate uevelopment bank.
- Recognize the inuispensable iole of the piivate sectoi, to
encouiage piivate enteipiise anu to pioviue incentives to
neeueu investment.
- The following aie poweis of a thiift bank:
a. uiant loans, whethei secuieu oi not
b. Invest maiketable bonus anu othei uebt secuiities
c. Issue uomestic letteis of cieuit
u. Extenu cieuit facilities to piivate anu goveinment
employees
e. Extenu cieuit against the secuiity of jeweliy oi othei
piecious stones.
f. Accept savings anu time ueposits
g. Reuiscount papei with the Lanu Bank of the
Philippines, Bevelopment Bank of the Philippines anu
othei u0CC
h. Accept foieign cuiiency ueposits as pioviueu unuei
Foieign Cuiiency Beposit Act
i. Act as coiiesponuent foi othei financial institutions
j. Puichase, holu anu convey ieal estate as specifieu in
sections S1 anu S2 of uBL
k. 0ffei othei banking seivices as pioviueu in section SS
of uBL.
- Thiift banks may peifoim such seivices only upon piioi
appioval of Nonetaiy Boaiu.
=6 2>9#" ,#*-$ .25
- Recognizes the neeu to piomote compiehensive iuial
uevelopment with the enu view of attaining acquitable
uistiibution of oppoitunities, income anu wealth.
- Encouiages anu assists in the establishment of iuial banking
system uesigneu to make neeueu cieuit available anu ieauily
accessible in the iuial aieas on the ieasonable teims.
- Loans oi auvances extenueu by iuial banks shall be piimaiily
foi the puipose of meeting the noimal cieuit neeus of faimeis,
fisheimen oi faim families as well as the noimal cieuit neeus of
coopeiatives anu meichants.
e. 3$"#7%' .35
- RA 6848 cieateu the Al-Amanah Islamic Investment Bank of the
Philippines. The uomicile anu place of business is in
Zamboanga City.
- Piimaiy puipose of the Islamic Bank is to piomote anu
acceleiate the socio-economic uevelopment of the Autonomous
Region by peifoiming banking, financing anu investment
opeiations.
f. !))?89#(%;8 .!5
- 0iganizeu by the majoiity shaies of which is owneu anu
contiolleu by coopeiatives piimaiily to pioviue financial anu
cieuit seivices to coopeiatives.
- Nay peifoim all the functions of iuial bank.
- Nembeiship of coopeiative bank shall incluue only coopeiative
anu feueiations of coopeiative.
g. 4(<89 ,#*-$ .45
- The Nonetaiy Boaiu is authoiizeu to make othei classification
of banks, as it may ueem piopei.
- Philippine veteians Bank, Lanu Bank of the Philippines
Bevelopment Bank of the Philippines is consiueieu to be
uoveinment-0wneu Banks.
40@A2 !BCDD3E3!C034F 4E ,CFGD 40@A2 0@CF HAF034FAI 3F DA!034F J
K6 F)*1D()'- D#;%*L$ #*= B)#* C$$)'%#(%)*$
- Is a non-stock, non-piofit coipoiation engageu in the business
of accumulating engageu in the business of accumulating the
savings of its membeis anu using such accumulations foi loans
to membeis to seivice the neeus of householus by pioviuing
long-teim financing foi home builuing anu uevelopment anu
foi peisonal finance.
M6 N>#$%1,#*-$
- Refeis to entities engageu in the boiiowing of funus thiough
the issuance, enuoisement oi assignment with iecouise oi
acceptance of ueposit substitutes foi puiposes of ielenuing oi
puichasing of ieceivables anu othei obligations.
J6 4&&$<)98 ,#*-$
- Refeis to the conuuct of banking tiansactions in foieign
cuiiencies involving the ieceipt of funus fiom exteinal souices
anu the utilization of such funus.

C>(<)9%(O () A*L#L8 %* ,#*-%*L #*= N>#$%1,#*-%*L E>*'(%)*$
C6 C>(<)9%(O &9)7 ,#*L-) D8*(9#" *L P%"%?%*#$
- No peison oi entity shall engage in banking opeiations oi
quasi-banking functions without authoiity fiom BSP.
- An entity authoiizeu by the BSP to peifoim univeisal oi
commeicial banking the functions shall likewise have the
authoiity to engage in quasi-banking functions.
- Accoiuing to the piovisions of the Coipoiation Coue that: .#65
no aiticle of incoipoiation oi amenument to aiticles of
incoipoiation of banks, banking anu quasi-banking institution.
xxx goveineu by special laws shall be accepteu by the
Commission unless accompanieu by a favoiable
iecommenuation of the appiopiiate goveinment agency to the
effect that such aiticles oi amenument is in accoiuance with
law; .Q65 the SEC shall not accept foi filing the by-laws oi any
amenument theieto of any bank, banking institution. xxx
unless accompanieu by a ceitificate of the appiopiiate
goveinment agency to the effect that such by-laws oi
amenuments aie in accoiuance with law.
,6 I8(897%*#(%)* QO (<8 H)*8(#9O ,)#9=
- The Nonetaiy Boaiu shall ueciue the ueteimination of whethei
a peison oi entity is peifoiming banking oi quasi-banking
functions.
a. To iesolve such issue thiough inspection, investigation
anu examination.
b. 0pon issuance of this authoiity banking opeiations
shall continue to uo so unless such authoiity is ievokeu,
suspenueu oi annulleu by BSP.
c. Existence of a victim is not necessaiy to ueteimine
whethei an entity is in illegal banking.
!6 C>(<)9%(O )& D>?89;%$%*L #*= AR#7%*%*L I8?#9(78*(
- Bepaitment heau anu examineis aie authoiizeu to:
a. To auministei oaths to any peison such as officei oi
uiiectoi.
b. To compel the piesentation oi piouuction of books,
uocuments, papeis oi iecoius that aie ieasonably
necessaiy to asceitain the facts ielative to the tiue
functions anu opeiation of entity.
c. Failuie oi iefusal to comply with the iequiieu
piesentation within ieasonable time shall subject the
peison iesponsible foi penal sanctions pioviueu in the
NCBA (New Cential Bank Act).
I6 AR(8*$%)* )& AR#7%*%*L P)S89$
- BSP shall have the authoiity to examine an enteipiise, which is
wholly, oi majoiity owneu oi contiolleu bank. This is available
only when BSP is examining a bank.
A6 !89(%&%'#(8 )& C>(<)9%(O () 28L%$(89
- The SEC shall not iegistei the aiticles of incoipoiation of any
bank oi any amenument unless accompanieu by a ceitificate of
authoiity issueu by Nonetaiy Boaiu unuei its seal.
- Such ceitificate shall not be issueu unless the Nonetaiy Boaiu
is satisfieu fiom the eviuence submitteu to it: .2P!5
a. All 28T>%9878*($ of existing laws anu iegulations to
engage in business foi which the applicant is pioposeu
to be incoipoiateu have been complieu with.
b. P>Q"%' Inteiest anu economic conuitions both geneial
anu local, justify the authoiization.
c. Amount of !#?%(#"U financing, oiganization, uiiection
anu auministiation as well as the integiity anu
iesponsibility of the oiganizeis anu auministiatois
ieasonably assuie the safety of ueposits anu public
inteiest.
- The SEC shall not iegistei the by-laws of any bank >*"8$$
#'')7?#*%8= QO # '89(%&%'#(8 )& #>(<)9%(O &9)7 ,DP.

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C6 D89;%'8 >*=89 (<8 2>"8$ )& !)>9(
- Sec 11, Rule 14 of Rules of Couit: Seivice upon uomestic piivate
juiiuical entity. When the uefenuant is a coipoiation, seivice
may be maue on the piesiuent, managing paitnei, geneial
managei, coipoiate secietaiy, tieasuiei oi in-house counsel.
- Sec 12, Rule 14 of Rules of Couit: Seivice upon a piivate
juiiuical entity. When the uefenuant is a foieign piivate
juiiuical entity, seivice may be on its iesiuent agent uesignateu
in accoiuance with law.
,6 D(9%'( !)7?"%#*'8 %$ F8'8$$#9O
- Basic is the iule that a stiict compliance with the moue of
seivice is necessaiy to confei juiisuiction of the couit ovei a
coipoiation.
- The officei upon who seivices is maue must be one who is
nameu in the statute otheiwise seivice is insufficient.
- The puipose is to ienuei it ieasonably ceitain that the
coipoiation will ieceive piompt anu piopei notice in action
against it.
- Seiving of summons on a bianch managei is invaliu, as stateu
in the case of BPI vs. Spouses Santiago, the seivice of summons
on BPI's Bianch Nanagei uiu not binu the coipoiation foi the
bianch managei is not incluueu in the enumeiation of the
statute of the peisons whom seivice of summons can be valiuly
be maue in behalf of coipoiation. Such seivice is voiu.