RA 720: Rural Banks' Act

Section 22. A fine of not more than two thousand pesos or imprisonment for not more than one year, or both, at the discretion of the court, shall be imposed upon:

  1. Any officer, employee, or agent of a Rural Bank who shall —

    1. make false entries in any bank report or statement thereby affecting the financial interest of, or causing damage to, the bank or any person; or

    2. without order of a court of competent jurisdiction disclose any information relative to the funds or properties in the custody of the bank belonging to private individuals, corporations, or any other entity; or

    3. accept gifts, fees or commission or any other form of remuneration in connection with the approval of a loan from said bank; or

    4. overvalue or aid in overvaluing any security for the purpose of influencing in any way the action of the bank on any loan; or

    5. appear and sign as guarantor, indorser or surety for loans granted by the bank.

  2. Any applicant for a loan from, or borrower of a Rural Bank who shall —

    1. misuse, misapply, or divert the proceeds of the loan obtained by him from its declared purpose; or

    2. fraudulently overvalue property offered as security for a loan from the said bank; or

    3. give out or furnish false or willful misrepresentation of material facts for the purpose of obtaining, renewing, or increasing a loan or extending the period thereof; or

    4. attempt to defraud the said bank in the event of court action to recover a loan; or

    5. offer any officer, employee or agent of a Rural Bank a gift, fee, commission or other form of compensation in order to influence such bank personnel into approving a loan application; or

    6. dispose or encumber the property or the crops offered as security for the loan.

  3. Any examiner, or officer or employee of the Central Bank of the Philippines or of any department, bureau, office, branch or agency of the Government who is assigned to examine, supervise, assist or render technical service to Rural Banks and who shall commit any of the acts enumerated in paragraph one of this section or connive or aid in the commission of the same.