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Transcript of RURAL BANK
Jinalyn Yambon Group six NON-STOCK SAVINGS AND LOAN ASSOCIATION what is
NON STOCK? CAPITALIZATION - All corporations whose capital stock is required or is permitted to be paid in by the stockholders in regular, equal periodical payment and whose purpose is to accumulate the savings of its stockholders. -It shall mean a non-stock, non-profit corporation engaged in the business of accumulating the savings of its members and using such accumulations for loans to members to service the needs of households by providing short and long term financing.
- Association shall refer only to non-stock savings and loan associations organized under the Revised Non-Stock Savings and Loan Association Act of 1997" Act and the Corporation Code of the Philippines REPUBLIC ACT NO. 8367
AN ACT PROVIDING FOR THE REGULATION OF THE ORGANIZATION AND OPERATION OF NON-STOCK SAVINGSAND LOAN ASSOCIATIONS SECTION 2:
It is hereby declared the policy of the State to:
a) encourage industry, frugality and the accumulation of savings, and judicious utilization of credit among the members of non-stock savings and loan associations;
b) regulate and supervise the activities of non-stock savings and loan associations in order to place their operations on a sound, stable, and efficient basis to the end that they may be able to better provide for the establishment of additional savings and credit facilities in a fair manner to their members and to curtail or prevent acts or practices of these Associations which are prejudicial to their members' interest;
c) lay down the minimum requirements and the standards under which non-stock savings and loan Associations may organize and operate; and
d) maximize the protection of members of non-stock savings and loan associations against misfeasance and malfeasance of the trustees and officersthereof.
May be converted into stock savings and loan association provided it has been operating for the last three (3) years. FORMS OF ORGANIZATION: CAPITALIZATION: LENDING OPERATIONS: Properly evidenced by a written note and must secured by:
a. A first mortgage or deed of trust on unencumbered real estate
b. The pledge to the association of shares of stock of the matured value of which is at least equal to the amount loaned. THANK YOU FOR WATCHING :) - It may also acquire real estate for subdivision into residential lots for sale or lease exclusively to their members. SECTION 3
For the purposes of implementing this Act, the following definitions shall apply:
a) Non-stock savings and loan association shall mean a non-stock, non-profit corporation engaged in the business of accumulating the savings of its members and using such accumulations for loans to members to service the needs of households by providing long term financing for home building and development and for personal finance;
b) Association shall refer only to non-stock savings and loan associations organized under this Act and the Corporation Code of the Philippines;
c) Monetary Board shall mean the Monetary Board of the Bangko Sentral ng Pilipinas; and
d) Bangko Sentral shall mean the Bangko Sentral ng Pilipinas. SECTION 12. Trustees. — Only members are eligible as trustees of an Association:Provided, That in the case of a merger or consolidation of Associations duly approved by the Monetary Board, the limitation on the maximum number of trustees in a corporation, as provided for in the Corporation Code, shall not be applied for a maximum period of three (3) years so that membership in the new board may include up to the total number of trustees provided for in the respective articles of incorporation of the merging or consolidating Associations. The Monetary Board may refuse to award the certificate of approval: - That the corporation is to be formed for any business other than the legitimate savings and loan business.
- That the associations financial program is unsound; and
- That the area where the association is to be located is adequately served by one or more existing associations. POWERS:
. LIMITATIONS ON INVESTMENT: RESERVES: Is required to create a withdrawable share reserve will consist of 3% of the aggregate capital contributions of the members. Section 39 of R.A No. 337
organized in the formed of corporation BATAS PAMBANSA BLG. 68 Any or all of the shares or series of shares may have a par value or have no par value as may be provided for in the articles of incorporation: Provided, however,
That banks, trust companies, insurance companies, public utilities, and building and loan associations shall not be permitted to issue no par value shares of stock (Section 6). The capital stock is to be divided into shares of the matured or par value of P200 each. Payments by the stockholders to the subscribed capital stock are in regular, equal periodical payments known as dues, at such times and in such amounts as may be provided in the by-laws of the association. Association is authorized to charge: 1.Membership or Entrance fee not exceeding one peso on each share of stock issued. 2.Transfer fee not exceeding twenty centavos on each share transferred. Shares which have not been pledged as security for the payment of a loan may refer as “free shares”. Shares which have been so pledged may be called “pledged shares”. Shares which have been so pledged may be called “pledged shares”. END OF NON-STOCK SAVINGS AND LOAN ASSOCIATION
BUILDING AND LOAN ASSOCIATION
JOURNEY ! OTHER MATTERS: Acquisition of real estate is subject to the following requirements:
a.Each association is not to invest more than 25% of its paid-in capital and surplus;
b.A member of such association is prohibited to acquire more than one residential lot, subdivided accordingly;
c.Two-thirds of all the members of the board of directors must approve the acquisition, resale, or lease of real estate. Karen Turay
Margie Fuentes SECTION 13. Bond of officers and employees. — All officers and employees of an Association who, in the regular discharge of their duties have access to money or negotiable securities shall, before entering upon such duties, furnish to the employing Association a good and sufficient bond, the form and amount of which shall be prescribed by the Monetary Board, and providing for indemnity to the Association against the loss of money or securities, by reason of their dishonesty. and BUILDING AND LOAN ASSOCIATION What is a savings and loan association? Republic Act No. 3779, as amended, otherwise known as SAVINGS AND LOAN ASSOCIATION ACT.
- Is any corporation engaged in the business of accumulating the savings to its members.
-Is not authorized to transact business with the general public, but accepts deposits from, and grant loans to its member-depositors.
- a corporation organized primarily for mutual self-help and common interest of its members who must belong to a well-defined group and shall not transact business with the general public. A savings and loan association (S&L) is a financial institution that specializes in savings deposits and mortgage loans, and has become one of the primary sources of mortgage loans for homebuyers today. It offers mortgage services to people from the savings and deposits received from private investors. Depositors and borrowers are members with voting rights and have the ability to direct the financial and managerial goals of the organization. Characteristics of savings and loan associations: Privately or locally managed financial institutions
Uses individuals’ deposits to make long-term amortized loans to home buyers.
Disperses loans for home repairs, construction, and refinancing A non savings stock corporation is a corporation organized primarily for mutual self-help and common interest of its members who must belong to a well-defined group and shall not transact business with the general public 1.Grant Loans;
Not more than Five (5) years, except:
a.Loans on the security of encumbered real estate
b.Medium or long term loans to finance agricultural projects. 2.To charge interest within the limits allowed by law. 3.To discount with recourse commercial papers and accounts receivable. 4.To invest its funds in any sound non-speculative enterprise. 5.To allow member-depositors to participate in the profits of the association.
6.To borrow money or incur such obligations from any Public and Private Institution. 7.To maintain deposits with the banks 1.It cannot invest in bonds and securities an aggregate amount in excess of 10%. 2.It cannot invest in real property an aggregate amount in excess of 5%. 2.It cannot invest in real property an aggregate amount in excess of 5%. 3.It cannot invest in furniture, fixture, furnishing and equipment and leasehold improvement for its offices, more than 10% of its aggregate paid-up capital. 4.It cannot make investment in real estate and improvements, thereon, including equipment, in aggregate amount in excess of 50% of its net worth. All corporations whose capital stock is required or is permitted to be paid in by the stockholders in regular, equal, periodical payments and whose purpose is to accumulate the savings of its stockholders, to repay to said stockholders their accumulated savings and profits upon surrender of their shares, to encourage industry, frugality, and home building among its stockholders, and to loan its funds, and funds borrowed for the purpose, to stockholders on the security of unencumbered real estate and with the pledge of shares of the capital stock owned by such stockholders as collateral security, shall be known as building and loan associations, and the words "mutual building and loan association" shall form part of the name of every such association. It shall be unlawful for any building and loan association to make any loan upon property that is suitable for use only as theater, public hall, church, convent, school, club, hotel, garage, or other public buildings: Provided, however, That to facilitate the investment of the idle funds of a building and loan association, the Monetary Board may, in special instances, waive the provisions of this paragraph, in cases of public hall, school, hotel and other public buildings. With the approval of the Monetary Board, a building and loan association may also invest such of its funds as may otherwise remain idle, in bonds and obligations of the Republic of the Philippines, or of any of its political subdivisions, or of any government-owned or controlled corporation, including the Central Bank.