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ate Issued: 11.26.1992 | Number: 001369 | CBP CIRCULAR NO. 1369
Series of 1992Pursuant to Republic Act No. 7353, otherwise known as the Rural Banks Act of 1992, the Monetary Board Resolution No. 991 dated October 23, 1992, the following guidelines are hereby issued in the implementation of the pertinent provisions thereof. A. EXEMPTION FROM OWNERSHIP CEILING (SECTION 4)Stockholdings in a rural bank shall be exempt from any ownership ceiling for a period of ten (10) years effective as of April 2, 1992, the date of Approval of R.A No. 7353 (Rural Banks Act of 1992), subject to the following:1. The rural bank shall submit to the Monetary Board for approval, through the appropriate supervising and examining department of the Central Bank, any stock transfer and/or new subscription that will exceed the previous prescribed ceilings under Section 12-D of R.A. 337, as amended, on individual/family group/corporate stockholdings in accordance with the required report on stock transactions (format attached).2. Stockholdings in excess of the ceilings prescribed by law may be retained by the stockholders concerned after the lapse of the ten (10) year period, provided, however, that the same shall not further increase, and once reduced, may not be increased beyond the limits prescribed, except as may otherwise be approved by the Monetary Board. In cases where shares of the unsubscribed capital stock are sold to any person other than the existing stockholders, the bank's corporate secretary shall execute a certificate under oath that all the pertinent requirements of the Corporation Code on a valid stock transfer/subscriptions have been complied with.3. Stockholders of rural banks availing themselves of the provisions of Section 8 of R.A. No. 7353, particularly the conversion scheme of arrearages into Government equity which has to be matched with private equity within a period

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