The House of Representatives approved on second reading House Bill 6598 imposing stiffer penalties against officers and trustees of non-stock savings and loan associations who commit unscrupulous activities.
The bill aims to protect members of such associations by amending Section 15 of Republic Act No. 8367 or “The Revised Non-Stock Savings and Loan Associations Act of 1997’ to Foster the Industries’ Frugality and the Accumulation of Savings to Promote Judicious Utilization of Credit Among the Members of Non-Stock Savings and Loan Associations, Providing Still Penalties and Sanctions, and For Other Purposes,” which is principally authored by Rep. Michael Romero (Party-list, 1-PACMAN).
The amendment on the “limitations on lending authority” provision provides that the terms of transactions of all trustees-officers with the associations shall not be under terms more favorable than those transacted with other members.
The office of any trustee or trustee-officer of an Association who violates the provisions of this subsection shall immediately become vacant and the trustees or officers shall be punished by imprisonment of not less than two years nor more than 10 years and by a fine of not less than P50,000, the amendment said.
RA No. 8367 or the “Revised Non-Stock Savings and Loan Association Act of 1997” defines ‘non-stock savings and loan associations’ as “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.”
Under the current law, the punishment imposed against the officers and trustees of such association is imprisonment of not less than one year nor more than 10 years and a fine of P5,000 to P50,000.
HB 6598 also amends subsection D, E, and F of Section 23, “Penalties,” of RA No. 8367 as follows:
“d) Whenever any officer, employee, or agent of an Association accepts gifts, fees of commissions or any other form of remuneration in connection with the approval of a loan from said Association; or overvalues or aids in overvaluing any security for the purpose of influencing in any way the action of the Association on any loan, such officer, employee or agent shall be punished by a fine of not less than P50,000 or three times the loan amount involved, whichever is higher, or imprisonment for not less than one year, at the discretion of the court.
e) Whenever any applicant for a loan, or borrower of an Association fraudulently overvalues property offered as security for loan from the said Association; or furnishes false, or makes willful misrepresentation of material facts for the purpose of obtaining, renewing, or increasing a loan or extending the period thereof; or attempts to defraud the said Association in the event of a court action to recover a loan; or offers any officer, employee or agent of an Association any gift, fee, commission, or other form of compensation in order to influence such Association personnel into approving a loan application; such applicant or borrower shall be punished by a fine of not less than P50,000 or three times the loan amount involved, whichever is higher, or imprisonment for not less than one year, at the discretion of the court.
f) Whenever any examiner, officer or employee of the Bangko Sentral, who is assigned to examine, assist or render technical service to an Association, overvalues or aids in overvaluing any security for the purpose of influencing in any way the action of the Association on any loan or connives or aids in the commission of the same, he shall be punished by a fine of not less than P50,000 or three times the loan amount involved, whichever is higher, or imprisonment for not less than one year, at the discretion of the court.”
Currently, the punishment imposed under subsections D and E, Section 23 of RA No. 8367 is a fine of not more than P5,000 or imprisonment of not more than one year.
Moreover, under subsection F, Section 23 of the present law, the penalty imposed is not more than P10,000 or imprisonment of not more than one year. (CONGRESS-PR)
