Amendment to Section 13 of R.A. No. 720 (Rural Banks' Act)
Republic Act No. 1403, approved on September 9, 1955, amends Section 13 of Republic Act No. 720, which governs the creation and operation of rural banks in the Philippines. The amendment allows the Central Bank to rediscount loans made by rural banks to their customers, provided these loans can be liquidated within 270 days. This measure aims to enhance the financial liquidity of rural banks. The act took effect upon its approval and was published in the Official Gazette in October 1955.
Law Information
- Reference Number
- Republic Act No. 1403
- Date Enacted
- Category
- Statutes
- Subcategory
- Republic Acts
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
September 9, 1955
REPUBLIC ACT NO. 1403
AN ACT TO AMEND SECTION THIRTEEN OF REPUBLIC ACT NUMBERED SEVEN HUNDRED AND TWENTY, ENTITLED "AN ACT PROVIDING FOR THE CREATION, ORGANIZATION AND OPERATION OF RURAL BANKS, AND FOR OTHER PURPOSES"
SECTION 1. Section thirteen of Republic Act Numbered Seven hundred and twenty is hereby amended by adding a new paragraph thereof, to read as follows:
"In normal times, the Central Bank may rediscount against paper evidencing a loan granted by a rural bank to any of its customers which can be liquefied within a period of two hundred and seventy days."
SECTION 2. This Act shall take effect upon its approval.
Approved: September 9, 1955
Published in the Official Gazette, Vol. 51, No. 10, p. 4970 in October 1955
Cite This Law
Amendment to Section 13 of R.A. No. 720 (Rural Banks' Act), Republic Act No. 1403, Sep 9, 1955 (Philippines)
Amendment to Section 13 of R.A. No. 720 (Rural Banks' Act), Republic Act No. 1403 (Phil. 1955)
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