Appendix 26

ILLUSTRATIONS WHEN A DIRECTOR, OFFICER AND STOCKHOLDER (DOS) SHALL WAIVE THE SECRECY OF DEPOSITS
(Appendix to Sec. 347)

A. When the loan is obtained from a bank that is a subsidiary of a holding company of which both the borrower’s bank and the lending bank are subsidiaries.

Thus, if Mr. A, who is a director of Z Bank borrows from Y Bank, he should waive the secrecy of deposits of whatever nature in all banks in the Philippines since both Y Bank and Z bank are subsidiaries of X Holding Company.

B. When the loan is from a bank in which a controlling proportion of the shares is owned by the same interest that owns a controlling proportion of the shares of his bank.

Lending bank’s Equity Structure

Borrower’s bank Equity Structure

In illustration above, the controlling shares in both banks belong to the “same interest”, Owner A.