Professional Documents
Culture Documents
Bank of Amsterdam,
1609
O Privately-owned banks
O Lends out to cooperatives within reasonable terms
O Loans may be granted on security of land
O Organized to promote and expand the rural economy by
providing farmers and small businessmen with means of
facilitating and improving their productive facilities
Services Performed by Rural Banks
O Accept savings and time deposits
O Act as a correspondent bank for other financial institutions
O Act as a collection agent
O Act as Official depository of municipal, city or provincial
funds where it is located
O May act as trustee over estates or properties of farmers and
merchants
O Extend financial assistance to private and public employees
in accordance to Sec. 5 of R.A 3779
NOTE:
O All rural banks shall be exempted from the payments of
taxes or fees except corporate income tax and local taxes for
5yrs from the date of the commencement of operations
Land Bank of the Philippines,
Development Bank of the Philippines or
any government-controlled banks
O shall subscribe within 30 days to the capital stock of any rural bank an
amount equal to the total investment of the private share holders until a
rural bank has accumulated enough capital of its own has stimulated
economic development
Specialized Government Banks of the
Philippines
O Joint Account
O Opened by two or more individuals
O Joint and account all depositors have to affix their signatures in all
transactions with the bank
O Joint or account any one of the depositors is allowed to transact with the
bank
O Corporate Account
O Opened by corporations
O Fiduciary Account
O Opened by a trustee in behalf of another person
O a legal person authorized to take title to and administer properties for the benefit of
others.
O Informal trust self-appointed
O Formal trust appointed by a court order
O Unincorporated Group of Accounts
O Opened by associations, social clubs, civic organizations,
professional, charitable organizations
O Not registered with the Securities and Exchange Commission
Inactive deposit account (dormant
Account)
O Does not have any activity through deposits or withdrawals for
a certain period of time.
O if the deposit is below the minimum amount required, the bank
will charge a service fee
O if the deposit is more than minimum requirement, the bank will
not charge a service fee
O If the account is dormant for ten years, the deposit will be
transferred to the Philippines Treasury
b. Trust function
O A bank can be authorized to engage in the business of a trust company
O Trusteeship involves three parties:
O Trustor holds legal title to the funds or properties of a trust
O Beneficiary person for whose benefit the trust is created
O Trustee manages the property entrusted