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LOAN FUNCTION
Purpose: Stated. If not used for the said purpose, terminate the
loan and demand for immediate repayment.
controlled
financial institutions.
For sometime now, usury has been legally non-inexistent and that
interest can now be charged as lender and borrower may agree
upon.
there is no reference rate set either by it or by the central bank, leaving the
determination thereof to the sole will and control of the lender bank is
invalid.
Basic Function of Banks
DEPOSIT FUNCTION
entities that only extend loans but do not accept deposits from the
public is not considered performing banking business.
Nature of Deposit
Bank as Debtor
KYC Policy
and
submit annually a certification that there is monitoring of
Deposits are not preferred credits Central Bank v. Morfe, 63 SCRA 114
(1975)
A contrary rule or practice would be productive of injustice, mischief and
confusion. To recognize such judgments as entitled to priority would mean
that depositors in insolvent banks, after learning that the bank is insolvent
as shown by the fact that it can no longer pay withdrawals or that it has
closed its doors or has been enjoined by the Monetary Board from doing
business, would rush to the courts to secure judgments for the payment of
their deposits.
Bank as Debtor
Capacity of Depositors
Minors Sec. 1, Presidential Decree No. 734; Sec. 22, Thrift Banks Act
Married Women Sec. 5, Republic Act No. 7192
Corporations: Through signatories designated by Board of Directors
Sec. 23, Corporation Code
Bank Officers and Employees: GR: Prohibited from maintaining demand
deposits or current accounts in banking office where they are assigned
Sec. X204, MRB
Prohibited Acts
Insurance business Sec. 54, GBL; Sec. 2, Insurance Code