Be it enacted by the Senate and House of Representatives of the Philippines in Legislature assembled and by the authority of the same:

SECTION 1. Section eighty-three of the Administrative Code is hereby amended to read as follows:

"SEC. 83. Bureaus and offices under the Department of Finance.—The Department of Finance shall have executive supervision over the Bureau of Customs, the Bureau of Internal Revenue, the Bureau of the Treasury, the Bureau of Banking, and the Bureau of Printing. It shall also have the general supervision over banks, banking transactions, coinage, currency, and except as otherwise specially provided over all funds the investment of which may be authorized by law."

SEC. 2. Section sixteen hundred and three of the Administrative Code is hereby amended to read as follows:

"SEC. 1603. Functions of Bureau of Treasury.—The Bureau of the Treasury shall be charged with the safekeeping of governmental funds, the supervision of the currency, and generally with the administration of the laws of the United States and of the Philippine Islands relating to coinage and currency in said Islands, and any other laws or parts of laws that may be expressly placed within its jurisdiction."

SEC. 3. Article VIII of chapter forty-one of the Administrative Code and sections sixteen hundred and twenty-eight, sixteen hundred and twenty-nine, sixteen hundred and thirty, sixteen hundred and thirty-one, sixteen hundred and thirty-two, sixteen hundred and thirty-three, sixteen hundred and thirty-four, sixteen hundred and thirty-five, and sixteen hundred and thirty-six thereunder are hereby repealed.

SEC. 4. Article IX of chapter forty-one of the Administrative Code and sections sixteen hundred and thirty-seven, sixteen hundred and thirty-eight, sixteen hundred and thirty-nine, sixteen hundred and forty, sixteen hundred and forty-one and sixteen hundred and forty-two thereunder shall hereinafter be designated as Article VIII and sections sixteen hundred and twenty-eight, sixteen hundred and twenty-nine, sixteen hundred and thirty, sixteen hundred and thirty-one, sixteen hundred and thirty.-two and sixteen hundred and thirty-three, respectively.

SEC. 5. The said Administrative Code is further amended by inserting immediately after chapter forty-one a new chapter to be known as "Chapter 41-A, Bureau of Banking" which shall contain the following provisions:

"SEC. 1634. Chief official of the Bureau of Banking; his duties, powers and jurisdiction.—The Bureau of Banking shall have one chief to be known as Bank Commissioner and shall be charged with the supervision and inspection of banks and banking institutions. The terms 'bank' and 'banking institution' as used in this chapter shall include banker, banks, mortgage banks, savings banks, commercial banks, trust companies, building and loan associations, and all other corporations, companies, partnerships, and associations performing banking functions.

"It shall be the duty of the Bank Commissioner to perform the duties imposed upon him by this chapter and see that all laws relating to banking and to banking institutions are duty executed. He shall have authority to issue such orders, instructions, and regulations as he may consider necessary to carry out the provisions of the law governing banking institutions and the supervision thereof, and to forbid a banking institution to transact business which is unlawful or, in his opinion, prejudicial to the creditors of such institution, and to require any banking institution to conduct its business in a lawful and safe manner, but all regulations of a general character must first be approved by the Secretary of Finance. Any banking institution may appeal from any order or instruction issued by the Bank Commissioner to the Secretary of Finance in accordance with section 79 (C) of the Administrative Code and may appeal from the decision of the Secretary of Finance to the Governor-General.

"The Bank Commissioner and the examiners of the Bureau of Banking are hereby authorized to administer oaths to any director, officer, or employee of any banking institution and to compel the presentation of all books, documents, papers or records necessary in his or their judgment to ascertain the facts relative to the true condition of any banking institution.

"SEC. 1635. Prohibitions.—The Bank Commissioner and all employees of the Bureau of Banking are hereby prohibited from:

"(a) Being an officer, director, employee, or stockholder, directly or indirectly of any banking institution subject to supervision or inspection by the bureau;

"(b) Receiving, except with the written approval of the Secretary of Finance, any loan, advance, gift, or thing of value from any such banking institution or from any officer, director, or employee thereof;

"(c) Revealing in any manner, except under orders of the court, information relating to the condition or business of any such banking institution. This prohibition shall not be held to apply to the giving of information to the Secretary of Finance, the Governor-General, or to any person authorized by either of them in writing to receive such information.

"SEC. 1636. Quarterly report of certain institutions to Bank Commissioner.—Every bank and banking institution engaged in business in the Philippine Islands shall on or before the fifteenth day of January, April, July, and October of each year, make a report to the Bank Commissioner. This quarterly report shall contain such information relative to the business of the person or institution making the report as may be generally-prescribed in the regulations of the Bureau of Banking or as may be called for by the Bank Commissioner in special inquiries.

"When made by a corporation doing business in the Philippine Islands as a branch of a principal institution in another country, such report shall specifically state all the details of the business conducted during the preceding quarter in the Philippine branch thereof, and shall also report the financial condition of its principal at the latest practicable period prior to the date of such report.

"Forms of reports shall be supplied by the Bank Commissioner to all institutions of which reports are required in the Islands, and it shall be the duty of the Bank Commissioner therein to require the statement of such matter, as nearly as may be, as in the United States is required to be stated in the reports by national banks to the Comptroller of the currency under the laws and regulations therein prevailing.

"SEC. 1637. Examinations into condition of institutions.—It shall be the duty of the Bank Commissioner, personally or by deputy, at least once in every twelve months, and at such other times as he may deem expedient, to make an examination of the books of every institution within the purview of this chapter in order to ascertain its cash and available assets in the Philippine Islands, and its general condition and method of doing business, and to make report of the same to the Secretary of Finance, who will transmit a copy of said report to the Governor-General.

"Every such institution shall afford to the Bank Commissioner, and to his authorized deputy, full opportunity to examine its books, its cash, its available assets, and general condition, at any time when requested so to do by the Commissioner: Provided, however, That none of the reports and other papers relative to the examination of banking institutions shall be open to inspection by the public except insofar as such publicity shall be incidental to the proceedings hereinafter authorized or necessary for the prosecution of violations in connection with the business of the bank.

"The total annual expenses of the Bureau of Banking shall be reimbursed annually to the Government to the extent of one-half by assessment levied upon all banking institutions subject to inspection by the Bank Commissioner. The proportion of expenses of the Bureau of Banking to be assessed against each such banking institution shall be the same as the proportion which its average total assets bear to the average total assets of all such banking institutions during the year in which the expenses were incurred, but the one-half of the total expenses of the Bureau of Banking assessed against all banking institutions in any one year shall not exceed sixty thousand pesos.    The Bank Commissioner shall by regulation prescribe the form, manner, and time for the levying and payment of the assessment.

"SEC. 1638. Proceedings to suspend operation of offend-ing institutions—Petition of Attorney-General.—When the owner, agent, manager, or other responsible officer in charge of any institution within the purview of this chapter shall wilfully refuse to file a report hereinabove required or to permit an examination of its affairs, as specified in the next preceding section hereof, it shall be the duty of the Bank Commissioner forthwith to give written information of such delinquency to the Attorney-General, whose duty it shall be to address a petition to the Secretary of Finance praying that the offending institution be forbidden to continue the doing of business in the Philippine Islands, and also to institute criminal proceedings against the offending party.

"Upon receiving such petition, it shall be the duty of the Secretary of Finance to investigate the facts set forth in said petition by hearing upon due notice to the institution in question, and if he finds them to be true, he may, with the approval of the Governor-General, forthwith forbid it to continue to do business in the Islands and direct the Bank Commissioner to take charge of its affairs, liquidate its assets, and settle its obligations in the order of their legal priority.

"The certificate of the Secretary of Finance to the effect that he finds the facts set forth in such petition to be true, and has directed the Bank Commissioner to perform the duties prescribed above, shall be a sufficient warrant and justification for the Bank Commissioner in performing all the duties therein prescribed.

"SEC. 1639. Proceedings upon insolvency—Authority of Bank Commissioner to take charge of assets.—When upon examination by the Bank Commissioner or his examiners or agents into the condition of any such institution it shall be disclosed to him that the condition of the same is one of insolvency, or that its continuance in business will involve probable loss to depositors or patrons, it shall be the duty of the Bank Commissioner forthwith, in writing, to inform the Secretary of Finance of the facts, and if the Secretary of Finance finds the statements of the Bank Commissioner to be true, he shall, with the approval of the Governor-General, forthwith forbid the institution to do business in the Islands and shall direct the Bank Commissioner to take charge of its assets and proceed according to law.

"The Bank Commissioner shall thereupon determine within thirty days whether the institution may be reorganized or otherwise placed in such a condition so that it may be permitted to resume business with safety to its creditors and shall prescribe the conditions under which such resumption of business shall take place. In such case the reasonable expenses, fees, and commissions of the Bureau of Banking in the administration of the banking institution shall be determined by the Secretary of Finance and shall be paid out of the assets of the banking institution.

"At any time within ten days after the Bank Commissioner has taken charge of the assets of any banking institution, such banking institution may apply to the court of first instance for an order requiring the Bank Commissioner to show cause why he should not be enjoined from continuing such charge of its assets and the court may direct the Bank Commissioner to refrain from further proceedings and to surrender charge of its assets.

"If the Bank Commissioner shall determine that the banking institution cannot resume business with safety to its creditors, he shall forthwith by the Attorney-General file a petition in the court of first instance reciting the proceedings which have been taken and praying the assistance and supervision of the court in the liquidation of the affairs of the same. The Bank Commissioner shall thereafter, under the supervision of the court and with all convenient speed, reduce the assets of the banking institution to money.

"SEC. 1640. Proceedings upon violation of laws, regulations, instructions, etc.—Whenever a banking institution is persisting in the violation of its charter or by-laws or any law, or the orders, instructions, and regulations legally issued by the Bank Commissioner, or, whenever such institution is persisting in carrying on its business in an unlawful or unsafe manner, the Bank Commissioner shall, by the Attorney-General, file a petition in the court of first instance praying the assistance of the court to compel the banking institution to discontinue the violations or practices objected to in the petition of the Bank Commissioner. The Bank Commissioner may with the approval of the court take such action as the court may deem necessary to compel the banking institution complained against to discontinue said violations or practices as set forth in the Bank Commissioner's petition, and, if necessary, the Bank Commissioner may, under order of the court, proceed to liquidate the business of the institution.

"SEC. 1641. Distribution of assets.—In the case of the liquidation of a bank or banking institution, after payment of the costs of the proceedings, including reasonable expenses, commissions and fees of the Bank Commissioner, to be allowed by the court, the Bank Commissioner shall pay the debts of the institution, under decree of the court in the order of their legal priority.

"SEC. 1642. Disposition of fees and commissions.—All costs, fees, and commissions earned by the Bank Commissioner and his deputies in winding up the affairs and administering the assets of an institution under this chapter shall be used to pay the salaries of the clerks and other employees whose employment is rendered necessary in the discharge of the trust, together with other additional expenses caused thereby. The balance of commissions, fees, and costs earned, after the payment of all expenses, shall be available for meeting the ordinary expenses of the Bureau of Banking."

SEC. 6. Section twenty-seven hundred and forty-three of the Administrative Code is hereby amended to read as follows:

"SEC. 2743. Refusal to make report or permit examination.—Any agent, officer, or other persons in charge of any society or association within the purview of article eight of chapter forty-one of this code who, being thereunto required by the Insular Treasurer in writing, shall contrary to the provision of said article, willfully refuse to file the required initial or annual report or permit any lawful examination into the affairs of such society or association, shall be punished by a fine of not more than five hundred pesos or by imprisonment for not more than six months, or both."

SEC. 7. The said Administrative Code is further amended by inserting immediately after Article XIII of chapter sixty-six a new article to be known as  "ARTICLE XIII-A. Offenses connected with administration of the Bureau of Banking," which shall contain the following provisions:

"SEC. 2743-A. Refusal to make report or permit examination.—Any owner, agent, manager, or other officer in charge of any institution within the purview of Chapter 41-A of the Administrative Code, who, being thereunto required by the Bank Commissioner in writing, shall contrary to the provisions of said chapter, willfully refuse to file the required report or permit any lawful examination into the affairs of such institution shall be punished by a fine of not more than ten thousand pesos or by imprisonment for not more than one year, or both, in the discretion of the court.

"SEC. 2743-B. Statutory offenses by officers and employees.—The violation of the provisions of section sixteen hundred and thirty-five of Chapter 41-A of the Administrative Code shall be punished by a fine not to exceed five thousand pesos or by imprisonment for a term not to exceed five years, or by both, in the discretion of the court.

"SEC. 2473-C. False statement.—The willful making of a false statement under oath to the Bank Commissioner or to his examiners shall be punished by a fine not to exceed five thousand pesos or by imprisonment for a term not to exceed five years, or by both, in the discretion of the court.

"SEC. 8. The Bank Commissioner shall receive an annual salary of seven thousand two hundred pesos: Provided, however, That during the first three years from the date of the approval of this Act, the Governor-General may, whenever in his judgment the public interest so requires, employ a specially trained and experienced person to act as Bank Commissioner and to pay such person such additional compensation as in his judgment may be necessary. Such additional compensation shall be paid from the funds now at the disposal of the Governor-General under the provisions of Act Numbered Thirty-four hundred and thirty-one for the employment under contract of technical personnel and civilian assistants.

SEC. 9. The examiners and employees of the Bureau of '" Banking shall be appointed in accordance with the laws and regulations governing the appointment of Civil Service employees.

SEC. 10. The sum of thirty thousand pesos is hereby appropriated out of any funds in the Insular Treasury not otherwise appropriated, for salaries and wages, sundry expenses and equipment of the Bureau of Banking for the fiscal year nineteen hundred and twenty-nine. In addition to said sum the funds appropriated in the Appropriation Act of nineteen hundred and twenty-nine for the inspection and examination of banks, as may be determined by the Secretary of Finance, shall be transferred from the Bureau of the Treasury to the Bureau of Banking.

SEC. 11. This Act shall take effect upon its approval.

Approved, February 20, 1929.