CONSTITUTIONArt XII. Section 20. The Congress shall establish an independent central monetary authority, the members of whose governing board must be natural born Filipino citizens, of known probity, integrity and patriotism, the majority of whom shall dome from the private sector. They shall also be subject to such other qualifications and disabilities as may be prescribed by law. (1)The authority shall provide policy direction in the areas of money, banking and credit.(2) It shall have supervision over the operation of banks and (3) exercise such regulatory powers as may be provided by law over the operations of finance companies and other institutions performing similar functions. Until the Congress otherwise provides, the Central Bank of the Philippines, operating under existing laws, shall function as the central monetary authority. THE NEW CENTRAL BANK ACT SECTION 1. Declaration of Policy. — The State shall maintain a central monetary authority that shall function and operate as an independent and accountable body corporate in the discharge of its mandated responsibilities concerning money, banking and credit. In line with this policy, and considering its unique functions and responsibilities, the central monetary authority established under this Act, while being a government-owned corporation, shall enjoy fiscal and administrative autonomy. General Banking Law SECTION 3. Definition and Classification of Banks. — 3.1. "Banks" shall refer to entities engaged in the lending of funds obtained in the form of deposits. (2a) 3.2. Banks shall be classified into: (a) Universal banks; (b) C ommercial banks; (c) Thrift banks, composed of: (i) Savings and mortgage banks, (ii) Stock savings and loan associations, and (iii) Private development banks, as defined in Republic Act No. 7906 (hereafter the "Thrift Banks Act"); (d) R ural banks, as defined in Republic Act No. 7353 (hereafter the "Rural Banks Act"); (e) Cooperative banks, as defined in Republic Act No. 6938 (hereafter the "Cooperative Code"); (f) Islamic banks as defined in Republic Act No. 6848, otherwise known as the "Charter of Al Amanah Islamic Investment Bank of the Philippines"; and (g) O ther classifications of banks as determined by the Monetary Board of the Bangko Sentral ng Pilipinas. (6-Aa) (n) For this purpose. including those of the Bank for International Settlements (BIS). (n) The Bangko Sentral shall also have supervision over the operations of and exercise regulatory powers over quasi-banks. — The Bangko Sentral shall provide policy direction in the areas of money. the Monetary Board may prescribe ratios. limitations. The issuance of rules of conduct or the establishment of standards of operation for uniform application to all institutions or functions covered.6.5. trust entities and other financial institutions which under special laws are subject to Bangko Sentral supervision. banking and credit. Regular investigation which shall not be oftener than once a year from the last date of examination to determine whether an institution is conducting its business on a safe or sound basis:Provided.1. (2-Da) SECTION 5. Inquiring into the solvency and liquidity of the institution (2-D). (2-Ca) For the purposes of this Act. taking into consideration the distinctive character of the operations of institutions and the substantive similarities of specific functions to which such rules. conform to internationally accepted standards. 4. 4. 7653 (hereafter the "New Central Bank Act") for purposes of relending or purchasing of receivables and other obligations. Supervisory Powers. The conduct of examination to determine compliance with laws and regulations if the circumstances so warrant as determined by the Monetary Board. or 4. ceilings.2. Ratios.4. or other forms of regulation on the different types of accounts and practices of banks and quasi-banks which shall. "Supervision" shall include the following: 4. Ceilings and Limitations. 4.SECTION 4.3. ceilings and limitations. but not limited to exceptional cases or to enable a bank or quasi-bank under . Policy Direction. Enforcing prompt corrective action. That the deficiencies/irregularities found by or discovered by an audit shall be immediately addressed. endorsement or assignment with recourse or acceptance of deposit substitutes as defined in Section 95 of Republic Act No. to the extent feasible. "quasi-banks" shall refer to entities engaged in the borrowing of funds through the issuance. — The operations and activities of banks shall be subject to supervision of the Bangko Sentral. 4. Overseeing to ascertain that laws and regulations are complied with. The Monetary Board may exempt particular categories of transactions from such ratios. modes or standards are to be applied. . documents. examine. documents. (2-Ca) SECTION 6. when examining a bank. all such powers as may be necessary to carry on the business of commercial banking. The determination of whether a person or entity is performing banking or quasi-banking functions without Bangko Sentral authority shall be decided by the Monetary Board. (4a) SECTION 7. inspect or investigate the books and records of such person or entity. the powers of an investment house as provided in existing laws and the power to invest in non-allied enterprises as provided in this Act. Upon issuance of this authority. Powers of a Commercial Bank. suspended or annulled by the Bangko Sentral in accordance with this Act or other special laws. Powers of a Universal Bank. — No person or entity shall engage in banking operations or quasi-banking functions without authority from the Bangko Sentral: Provided. or director of any such entity and to compel the presentation or production of such books. such person or entity may commence to engage in banking operations or quasi-banking functions and shall continue to do so unless such authority is sooner surrendered. through the appropriate supervising and examining department of the Bangko Sentral. That an entity authorized by the Bangko Sentral to perform universal or commercial banking functions shall likewise have the authority to engage in quasi-banking functions. — A universal bank shall have the authority to exercise. SECTION 23. in addition to the powers authorized for a commercial bank in Section 29. employee. — A commercial bank shall have. — The Bangko Sentral shall. Examination by the Bangko Sentral. depositors and the general public. officer. papers or records within a reasonable time shall subject the persons responsible therefor to the penal sanctions provided under the New Central Bank Act. however. the Monetary Board may. To resolve such issue. have the authority to examine an enterprise which is wholly or majority-owned or controlled by the bank. Authority to Engage in Banking and Quasi-Banking Functions. (21-B) SECTION 29. Persons or entities found to be performing banking or quasi-banking functions without authority from the Bangko Sentral shall be subject to appropriate sanctions under the New Central Bank Act and other applicable laws.rehabilitation or during a merger or consolidation to continue in business with safety to its creditors. papers or records that are reasonably necessary to ascertain the facts relative to the true functions and operations of such person or entity. The department head and the examiners of the appropriate supervising and examining department are hereby authorized to administer oaths to any such person. Failure or refusal to comply with the required presentation or production of such books. revoked. in addition to the general powers incident to corporations. 83. the following definition of terms are hereby adopted: (a) "Underwriting" is the act or process of guaranteeing the distribution and sale of securities of any kind issued by another corporation. No Investment House shall engage in banking operations as defined in Section 2 of Republic Act No. acquiring marketable bonds and other debt securities. in an enterprise. and other evidences of debt. (2) Participate in a syndicate undertaking to purchase and sell. (3) Arrange to distribute or participate in a syndicate undertaking to purchase and sell on a best-efforts basis securities of other cdt cd i . as amended). accepting or creating demand deposits. (b) " Securities" are written evidences of ownership. however. Nothing in this Decree shall be understood to preclude other enterprises from engaging in the mere buying and selling of short-term securities of other persons or enterprises. These rules may include the determination of bonds and other debt securities eligible for investment. the maturities and aggregate amount of such investment. — Any enterprise which engages in the underwriting of securities of other corporations shall be considered an "Investment House" and shall be subject to the provisions of this Decree and of other pertinent laws. as defined in Section 2 of the Republic Act No. unless the context otherwise indicates. discounting and negotiating promissory notes. and extending credit. Prohibitions. subject to such rules as the Monetary Board may promulgate. That in no event can a person be authorized to be concurrently an officer of an Investment House and of a bank except where the majority or all of the equity of the Investment House is owned by the bank. as amended: Provided. buying and selling foreign exchange and gold or silver bullion. but is not limited to the instruments enumerated in Section 2 of the Securities Act (Commonwealth Act No. It includes. Scope. — Except as may be authorized by the Monetary Board. — In addition to the powers granted to corporations in general. interest. an Investment House is authorized to do the following: (1) Arrange to distribute on a guaranteed basis securities of other corporations and of the Government or its instrumentalities. receiving other types of deposits and deposit substitutes. casia SECTION 6. bills of exchange. no director or officer of an Investment House shall concurrently be a director or officer of a bank.such as accepting drafts and issuing letters of credit. distribute or arrange to distribute on a guaranteed basis securities of other corporations and of the Government or its instrumentalities. 337. Powers. drafts. or written evidences of indebtedness of a person or enterprise. SECTION 3. (21a) Investment Houses law SECTION 2. SECTION 7. 337. as amended. or participation. Definitions. — For the purpose of this Decree. sponsor. cdasia cdt acd Nothing in this section shall preclude other enterprises not covered by this Decree from engaging in the activities listed under subsection (3) to (11) of this section. deal in options. or exchange offering of securities. (11) Design pension.corporations and of the Government or its instrumentalities. engage in foreign exchange operations which the Monetary Board identified as directly related to an supportive of the activities specified under Subsection 8 of this section. (4) Participate as soliciting dealer or selling group member in tender offers. or broker. (8) Encourage companies to go public. hold. in which case the special law shall apply. FINANCING COMPANY ACT SECTION 3. (10) Acquire. profit-sharing and other employee benefits plans. subject to the provisions of Chapter VII of the General Banking Act. lease or obtain an interest in real and/or personal property as may be necessary or appropriate to carry on its objectives and purposes. and/or financial agent. the provisions of Chapter IV of the Central Bank Charter. (7) Act as portfolio manager. own. (9) Undertake or contract for researches. studies and surveys on such matters as business and economic conditions of various countries. the structure of financial markets. Section 3 of the same Act is hereby amended to read as . and such rules and regulations as may be issued by the Monetary Board. rights or warrants relating to securities and such other powers which a dealer may exercise under the Securities Act (Commonwealth Act No. projects and programs that contribute to the economy's development. (12) Such other activities or business ventures as are directly or indirectly related to the dealing in securities and other commercial papers. (6) Act as financial consultant. the institutional arrangements for mobilizing investments. 83. whenever warranted. as amended). merger. consolidation. by providing assistance or participate in the form of debt or equity financing or through the extension of financial or technical advice or service. and (14) Act as trustee of a trust fund or trust property. reorganization. block sales. expansion or recapitalization of productive enterprises. or otherwise assist and implement ventures. and initiate and/or promote. investment adviser. unless otherwise governed or prohibited by special laws. (5) Promote. except as may otherwise be governed by special laws. the formation. (13) Subject to prior approval by the Monetary Board. " SECTION 10. by direct lending or by discounting or factoring commercial papers or accounts receivable. mortgage. above. savings and loan associations. cooperatives. Rights and Powers. machinery. appliances. exclusive of fees. leases. or to the other claims against. There is hereby inserted after Section 8 as renumbered. or by financial leasing of movable as well as immovable property. or for the delivery of. demand. . and any transaction or series of transactions having similar purpose or effect. investments houses. or other evidences of indebtedness. part of all or the price is payable subsequent to the making of such sale or contract. "(e) 'Purchase discount' is the difference between the value of the receivable purchased or credit assigned. charges. motor vehicles. lien or pledge. any obligation or claim arising out of the foregoing. and the net amount paid by the finance company for such purchases or assignment. or by buying and selling contracts. and other movable or immovable property in consideration of the periodic payment by the lessee of a fixed amount of money sufficient to amortize at least seventy (70%) of the purchase price or acquisition cost. services. 3. "(b) 'Securities and Exchange Commission' shall mean the office of the Securities and Exchange Commission of the Philippines. any contract. or agricultural enterprises. and "(d) 'Financial leasing' is a mode of extending credit through a non-cancelable lease contract under which the lessor purchases or acquires. either for present or future delivery. "(c) 'Credit' shall mean any loan. but with no obligation or option on his part to purchase the leased property from the owner-lessor at the end of the lease contract. or other acquisition of or any credit upon the security of. business and office machines. any conditional sales contract. advance or discount. insurance and preservation thereof. or sale or contract of sale of property or service. — As used in this Act. commercial. and other financial institutions organized or operating under other special laws. the term: "(a) 'Financing companies' hereinafter called companies. including any incidental expenses and a margin of profit over an obligatory period of not less than two (2) years during which the lessee has the right to hold and use the leased property with the right to expense the lease rentals paid to the lessor and bears the cost of repairs. maintenance.follows: "Sec. any purchase. 11. 12 and 13 to read as follows: SEC. "(f) 'Lease rentals' shall refer to the periodic payments made by the lessee to the lessor under Section 3(d). interest and other charges incident to the extension of credit. in addition to those granted by this Act and by other laws: "(a) Engage in quasi-banking and money market operations with the prior approval of the Bangko Sentral ng Pilipinas. which are primarily organized for the purpose of extending credit facilities to consumers and to industrial. are corporations. chattel mortgages. equipment. insurance companies. new Sections 9. financial lease. deed of trust. under which. property or money. 10. contract to sell. 9. at the instance of the lessee. — Financing companies shall have the following powers. "(b) Engage in trust operations subject to the provisions of the General Banking Act upon prior approval by the Bangko Sentral ng Pilipinas. any option. except banks. Definition of Terms. the Commission by order may extend such period of exemption for an additional period or periods. "(e) Participate in special loan or credit programs sponsored by or made available through government financial institutions. subject to existing laws and rules and regulations promulgated by the Bangko Sentral ng Pilipinas. Definition of investment company. "Nothing in this section shall be construed as precluding a financing company from performing such services or exercising such powers as may be granted by the Bangko Sentral ng Pilipinas or the Securities and Exchange Commission or as may be incidental to its activities as a corporation. and (b). (c) Notwithstanding subsection (a). or trading in securities. finds that the circumstances which gave rise to the issuance of an order granting an application under this paragraph no longer exist. upon its own motion or upon application. reinvesting. reinvesting. in a business or businesses other than that of investing. none of the following persons is an investment company within the meaning of this Act. Investment Company Act. "(d) Rediscount their paper with government financial institutions subject to relevant laws. (3) Any issuer all the outstanding securities of which (other than shortterm paper and directors' qualifying shares) are directly or indirectly owned by a company excepted from the definition of investment company. none of the following persons is an investment company within the meaning of this Act: . in the business of investing. or proposes to engage primarily. reinvesting. cda (b) Notwithstanding subsection (a). (1) Any issuer primarily engaged. upon application by such issuer. Whenever the commission. For cause shown. directly or through a wholly-owned subsidiary or subsidiaries. or trading in securities either directly or (A) through majority-owned subsidiaries or (B) through controlled companies conducting similar types of business. the Commission shall by order revoke such order. — (a) when used in this Act "investment company" means any issuer which is or holds itself out as being engaged primarily. The filing of an application under this paragraph by an issuer other than a registered investment company shall exempt the applicant for a period of sixty days from all provisions of this Act applicable to investment companies as such. finds and by order declares to be primarily engaged in a business or businesses other than that of investing."(c) Issue bonds and other capital instruments subject to pertinent rules and regulations of the Bangko Sentral ng Pilipinas. and "(f) Provide foreign currency loans and leases to enterprises who earn foreign currency by exports or other means. (2) Any issuer which the Commission. sec 4 SECTION 4. rules and regulations. or trading in securities. gas. except that. the beneficial ownership shall be deemed to be that of the holders of such company's outstanding securities (other than short-term paper). homestead association. and to prospective purchasers of. (4) Any person substantially all of whose business is confined to industrial banking or similar business. or in one or more of such businesses (from which not less than forty per centum of such company's gross income during its last fiscal year was derived) together with an additional business or businesses other than investing. (7) Any company ninety per centum or more of the value of whose investment securities are represented by securities of a single issuer included within a class of persons enumerated in paragraphs (4). (3) Any bank or insurance company. open accounts receivable. (6) Any company primarily engaged. or guardian. For the purpose of this paragraph. or certificates of interest or participation in or . or any one or more of such activities. or (6). (5). wholesalers. or similar institution. specified merchandise. reinvesting. owning. (8) Any person substantially all of whose business consist of owning or holding oil. and other obligations representing part or all of the sales price of merchandise. if such company owns ten per centum or more of the outstanding voting securities of the issuer.(1) Any issuer whose outstanding securities (other than short-term paper) are beneficially owned by not more than twenty-five persons and which is not making and does not presently propose to make a public offering of its securities. selling securities to customers. (2) Any person primarily engaged in the business of underwriting and distributing securities issued by other persons. insurance. or any receiver. insurance. acceptances. liquidating agent. in one or more of the businesses described in paragraphs (3). whose gross income normally is derived principally from such business and related activities. liquidator. administrator. and services. or fractional interests therein. holding or trading in securities. and acting as broker. or other mineral royalties or leases. or similar official or person thereof or therefor. drafts. and service. any common trust fund or similar fund maintained by a bank exclusively for the collective investment and reinvestment of moneys contributed thereto by the bank in its capacity as a trustee. any savings and loan association. conservator. (4) and (5). building and loan association. cooperative bank. (5) Any person who is primarily engaged in one or more of the following business: (A) Purchasing or otherwise acquiring notes. directly or through majorityowned subsidiaries. executor. (B) making loans to manufacturers. and (C) purchasing or otherwise acquiring mortgages and other liens on and interests in real estate. and retailers of. beneficial ownership by a company shall be deemed to be beneficial ownership by one person. drafts. leases. chattel mortgage. benevolent. charitable. in commercial papers and accounts receivables. or in financing for home building and home development. pension. That the thrift bank has net assets of at least Twenty million pesos (P20. private development banks. (b) " Monetary Board" shall mean the Monetary Board of the Bangko Sentral ng Pilipinas.000. (11) Any voting trust the assets of which consist exclusively of securities of a single issuer which is not an investment company. (12) Any security holders' protective committee or similar issuer having outstanding and issuing no securities other than certificates of deposit and short-term paper. (b) Open current or checking accounts: Provided. Powers of Thrift Banks. services. (9) Any company organized and operated exclusively for religious. bills of exchange. and stock savings and loans associations organized under existing laws. together with capital loans secured by bonds. — For purposes of implementing this Act. acceptances or notes arising out of commercial transactions. or fractional interests. or profit.sharing trust. and (3) Providing diversified financial and allied services for its chosen market and constituencies specially for small and medium enterprises and individuals. or reformatory purposes. and in such other investments and loans which the Monetary Board may determine as necessary in the furtherance of national economic objectives.000) subject to such guidelines as may be established by the Monetary Board. — In addition to powers granted it by this Act and existing laws. mortgages in real estate and insured improvements thereon. medium-and long-term financing. (c) "Bangko Sentral" shall refer to the Bangko Sentral ng Pilipinas created under Republic Act No. bonds and other forms of security or in loans for personal or household finance. educational. (10) Any employees' stock bonus. cda cd SECTION 10. and shall . and any banking corporation that may be organized for the following purposes: (1) Accumulating the savings of depositors and investing them. fraternal. no part of the net earnings of which inures to the benefit of any private shareholders or individual. any thrift bank may: (a) Accept savings and time deposits. Definition of Terms. the following definitions shall apply: (a) "Thrift banks" shall include savings and mortgage banks. SECTION 3. (2)providing short-term working capital.investment contracts relative to such royalties. whether secured or unsecured. industry and housing. in readily marketable and debt securities. to businesses engaged in agriculture. 7653. the Bureau of Internal Revenue. in any prepayment of loans which mortgage or chattel mortgage debtors may wish to make: Provided. buy and sell them for its own account or for the account of others. city or province where the thrift bank is located. (j) Open domestic letters of credit. or accept and receive them in payment or as amortization of its loan. conservation. (i) Engage in quasi-banking and money market operations. That the date of maturity of the certificates is not later than the date on which the payment would otherwise become due. (2) the refinancing of similar loans and mortgages. (e) Act as official depository of national agencies and of municipal. That in the case of a borrower who is a permanent employee or wage earner. the Land Bank of the Philippines.be allowed to directly clear its demand deposit operations with the Bangko Sentral and the Philippine Clearing House Corporation. (c) Act as correspondent for other financial institutions. and (3) such other purposes as may be authorized by the Monetary Board. Social Security System. cashier or paymaster of the office employing him is authorized. The bank shall accept its own certificates at least at the actual price of issue. (h) P urchase. Said institutions shall specify the nature of paper deemed acceptable for rediscount. the treasurer. notwithstanding the provisions of any existing law. city or provincial funds in the municipality. 337. as well as rediscounting rate to be charged by any of these institutions. Such mortgage and chattel mortgage certificates shall be issued exclusively in national currency and exclusively for the financing of equipment loans. and other government-owned or -controlled corporations. A thrift bank shall coordinate the amounts and maturities of its certificates with those of its loans. rules and regulations to the contrary. (k) Extend credit facilities to private and government employees: Provided. and the Bureau of Customs. acquisition. to make deductions cda . including but not limited to. expansion or improvement of rural and urban properties. the Development Bank of the Philippines. enlargement or improvement of productive properties and real estate mortgage loans for: (1) the construction. and (g) Issue mortgage and chattel mortgage certificates. (d) A ct as collection agent for government entities. hold and convey real estate under the same conditions as those governing commercial banks as specified under Section 25 of Republic Act No. subject to such guidelines as may be established by the Monetary Board. in the absence of the aforesaid prepayment. mortgage loans for the acquisition of machinery and other fixed installations. (f) Rediscount paper with the Philippine National Bank. so as to ensure adequate cash receipts for the payment of principal and interest at the time they become due. Cdasia Rural Bank Act SECTION 2. In furtherance of this policy. Purposes of Cooperatives. cTCaEA . or from operating under an expanded banking authority. 337 and Republic Act No. wage or income pursuant to the terms of his loan. (e). whenever applicable and not inconsistent with the provisions of this Act and Bangko Sentral regulations. a sustained increase in the amount of goods and services produced by the nation for the benefit of the people. precious stones and articles of similar nature. as amended. and to supervise the operation of such banks. 6426. Thrift banks may perform the services under subsections (b). and in expanding productivity as a key to raising the quality of life for all. (l) Extend credit against the security of jewelry. — A cooperative may be organized and registered for any or all of the following purposes: "(1) To encourage thrift and savings mobilization among the members. especially the underprivileged. the State hereby encourages and assists in the establishment of a rural banking system designed to make needed credit available and readily accessible in the rural areas on reasonable terms. income and wealth. "(3) To encourage among members systematic production and marketing. (d). and (m) Offer other banking services as provided in Section 72 of Republic Act No. (g) and (i) only upon prior approval of the Monetary Board. "(4) To provide goods and services and other requirements to the members. subject to such rules and regulations as the Monetary Board may prescribe. The State hereby recognizes the need to promote comprehensive rural development with the end in view of attaining a more equitable distribution of opportunities. to the people of the rural communities. nor from exercising. Towards these ends. "(5) To develop expertise and skills among its members. or to cooperatives of such farmers and merchants and. the Monetary Board of the Central Bank of the Philippines shall formulate the necessary rules and regulations governing the establishment and operation of rural banks for the purpose of providing adequate credit facilities to farmers and merchants. and such other powers incident to a corporation. in general.from his salary. SECTION 3. Cooperative Code of the Philippines "ART. Nothing in this Section shall be construed as precluding a thrift bank from performing. to remit deductions to the thrift bank concerned. and collect such reasonable fee for his services. "(2) To generate funds and extend credit to the members for productive and provident purposes. 6. commercial banking services. with prior approval of the Monetary Board. lease or operate cooperative banks. operating under the provisions of Republic Act No. "(10) To coordinate and facilitate the activities of cooperatives. "(11) To advocate for the cause of the cooperative movement. and public markets. and promote among themselves equitable distribution of net surplus through maximum utilization of economies of scale. investments. the BSP may prescribe appropriate guidelines. cost-sharing and risk-sharing. "(b) Provide optimum social and economic benefits to its members. 100. any cooperative bank may perform any or all of the banking services offered by other types of banks subject to the prior approval of the BSP. "The powers and functions of a cooperative bank shall be subject to such rules and regulations as may be promulgated by the BSP. 7. — A cooperative bank shall primarily provide financial. "(9) To establish. ART. "(13) To encourage and promote self-help or self-employment as an engine for economic growth and poverty alleviation. the cooperative shall aim to: "(a) Provide goods and services to its members to enable them to attain increased income. social and educational status of the members. Purpose and Domicile. Objectives and Goals of a Cooperative. other cooperatives and people-oriented organizations to further the attainment of any of the foregoing objectives. "(8) To promote and advance the economic. banking and credit services to cooperative organizations and their members. "(c) Teach them efficient ways of doing things in a cooperative manner. as amended. hereinafter called the Bank. Name. However. cooperative wholesale and retail complexes. Towards this end. "(12) To ensure the viability of cooperatives through the utilization of new technologies. and purchasing power. — The primary objective of every cooperative is to help improve the quality of life of its members. insurance and agricultural/industrial processing enterprises. REVISED CHARTER OF THE DEVELOPMENT BANK OF THE PHILIPPINES SECTION 2. savings. and "(14) To undertake any and all other activities for the effective and efficient implementation of the provisions of this Code. shall henceforth operate under the . "(7) To insure against losses of the members. productivity. own. Functions and Allied Undertakings of Cooperative Banks. and "(f) Cooperate with the government. Powers. ceilings and conditions on borrowings of a cooperative organization from a cooperative bank. "In addition to the powers granted by this Code and other existing laws."(6) To acquire lands and provide housing benefits for the members. — The Development Bank of the Philippines. 85. STcADa "ART. "(e) Allow the lower income and less privileged groups to increase their ownership in the wealth of the nation. "(d) Propagate cooperative practices and new ideas in business and management. to adopt. assign. (b) T o grant loans for the establishment. Provided.provisions of this 1986 Revised Charter. and Provided. that unless otherwise provided herein. and (g) To adopt. alter and use a seal. branches. SECTION 3. that the pursuit of these objectives shall be undertake within the context of a financially viable and stable banking institution. — The Development Bank of the Philippines shall have the power. savings. (e) To acquire. the Bank may perform all other functions of a thrift bank. (d) To act as official government depository with authority to maintain deposits of the government. (f) To enter into such contracts of guaranty or suretyship as are generally allowed domestic banking institutions under the General Banking Act. but not limited to demand. development or expansion of any agricultural or industrial enterprise. further. to sue and be sued. amend. or otherwise dispose of marketable securities and other debt instruments which are essential to the effective conduct of its general banking activities. subject to such rules and regulations as the Monetary Board may prescribe. with the prior approval of the Monetary Board of the Central Bank of the Philippines. (a) To accept such deposits as are allowed thrift banks under existing law and Central Bank regulations. its subdivisions. and of government-owned or controlled corporations. also known as Metro Manila. The Bank's principal office and place of business shall be in the National Capital Region. and time deposits. the exercise of the abovementioned powers on banking shall be subject to applicable law. The Bank shall be a body corporate and shall exist for a period of fifty years. as well as regulations . to make contracts. (c) To accept and manage trust funds and properties and carry on the business of a trust corporation. insofar as such powers are not inconsistent or incompatible with the provisions of this Charter. and instrumentalities. particularly in the countryside and preferably for small and medium scale enterprises. Unless otherwise provided in this Charter. and to exercise the general powers of a corporation mentioned in the Corporation Code of the Philippines. that the Bank shall continue to be classified as a development bank. Corporate Powers. agencies or other offices at such places in the Philippines as its Board of Directors may deem advisable. including. Provided. and of a thrift bank under the General Banking Act. The primary purposes of the Bank shall be to provide banking services principally to service the medium and long term needs of agricultural and industrial enterprises. finally. however. or change its By-laws. It may open and maintain branches. 4. To prescribe. industrial. acquire and own real and personal property. To finance and/or guarantee the acquisition. hold. — The bank shall have the power. as well as the purchase of the landholding by the agricultural lessee from the landowner. 5. marketing of crops and acquisition of essential commodities. dispose or otherwise invest or reinvest in stocks. 2. Before undertaking any such credit operation. LANDBANK OF THE PHILIPPINES SECTION 74. and to sell. hereinafter called the "Bank". repeal and alter its own by-laws to determine its operating policies. All loans from foreign sources shall be subject to approval by the President of the Philippines and shall be fully guaranteed by the Philippine Government. purchase. 8. shall request the opinion. and to issue such rules and regulations as may be necessary. bonds. debentures. there is hereby established a body corporate to be known as the "Land Bank of the Philippines". 7. make contracts. Powers in General. through the Secretary of Finance. the Bank. introduce necessary improvements thereon to enhance and develop their social and economic values. renewable for another fifty (50) years. in writing. SECTION 75. medium and long term loans and advances against security of real estate and/or other acceptable assets for the establishment. mortgage. The legal existence of the Bank is extended for a period of fifty (50) years from the expiration of its original term on 08 August 2013.promulgated by the Central Bank of the Philippines. Creation. which shall have its principal place of business in Manila. development or expansion of agricultural. To adopt. To grant short. mortgage or otherwise dispose of the same. acquire. home building or home financing projects and other productive enterprises. securities and other evidences of indebtedness of other corporations and of the . alter and use a corporate seal. 27 dated October 21. 1972. of the Monetary Board on the monetary implications of the contemplated action. 3. To grant loans to farmers' cooperatives/associations to facilitate production. purchase. — To finance the acquisition by the Government of landed estates for division and resale to small landholders. under Presidential Decree No. 6. own. To hold. To sue and be sued. 1. To underwrite. sell. The Bank shall be subject to such rules and regulations as the Central Bank may from time to time promulgate. 85 dated December 25. of farm lots transferred to tenant-farmers pursuant to Presidential Decree No. negotiate and secure loans from both local and foreign sources. 1972. to act as an official government depository with full authority to maintain deposits of the government. 9. The rate of interest to be charged and the conditions on such obligations or borrowings shall be subject to the rules and regulations of the Monetary Board. 13. agencies or other offices at such places in the Philippines or abroad subject to the laws.government or its instrumentalities which are issued for or in connection with any project or enterprise. loans. transactions or obligations of any person. credits. Al-Amanah Islamic Investment Bank of the Philippines SECTION 2. whether foreign or domestic: Provided. to establish a national marketing umbrella for farmers and fisheries cooperatives to attract massive capital formation from savings deposits of the cooperative members nationwide. To exercise the general powers mentioned in the Corporation Law and the General Banking Act. subdivisions and instrumentalities. its branches. All business dealings and activities of the Islamic Bank shall be subject to the basic principles and rulings of Islamic Shari'a within the purview of the aforementioned declared policy. Domicile and Place of Business. That the proceeds of such acceptances. 11. — The primary purpose of the Islamic Bank shall be to promote and accelerate the socio-economic development of the Autonomous Region by performing banking. which shall be hereinafter called the Islamic Bank. Its principal domicile and place of business shall be in Zamboanga City. SECTION 3. rules and regulations of the Central Bank. co-partnership. 10. financing and investment operations and to establish and participate in agricultural. bills of exchange and other commercial papers with. to guarantee acceptance(s). The provision of any law to the contrary notwithstanding. transactions or obligations are utilized or earmarked for the development and/or expansion of agriculture and industry. and of government-owned or -controlled corporations which deposits shall be subject to liquidity floor and/or reserve requirements as may be imposed by the Monetary Board upon other commercial banks. To borrow from. To act as trustee. Purpose and Basis. commercial and industrial ventures based on the Islamic concept of banking. 12. insofar as they are not inconsistent or incompatible with this Decree. — There is hereby created the Al-Amanah Islamic Investment Bank of the Philippines. the Central Bank. or administer any trust or hold property in trust in accordance with the provisions of law governing trust corporations. for the strengthening of the capital base of the bank. It may establish branches. credits. association or corporation in favor of any financing or banking institution. or rediscount notes. loans. Name. Any zakat or "tithe" paid by the Islamic Bank cda . as amended. and 14. and such correspondent offices in other areas in the country or abroad as may be necessary to carry on its Islamic banking business. as may be necessary to carry Islamic banking business. . particularly where Muslims are predominantly located.on behalf of its shareholders and depositors shall be considered as part of compliance by the Islamic Bank with its obligation to appropriate said zakat fund and to disburse it in legitimate channels to be ascertained first by the Shari'a Advisory Council. and to sell. SECTION 5. (5) T o employ such officers and personnel. upon its organization. SECTION 4. SECTION 6. selected from among Islamic scholars and jurists of comparative law. subject to the provisions of Section 2 hereof. but it shall not directly involve itself in the operations of the Bank. to own real or personal property and introduce improvements thereon. (3) T o make contracts. (2) T o adopt. Any member of the Shari'a Advisory Council may be invited to sit in the regular or special meetings of the Board of Directors of the Islamic Bank to expound his views on matters of the Islamic Shari'a affecting a particular transaction but he shall not be entitled to vote on the question presented before the board meetings. — There is hereby created a Shari'a Advisory Council of the Islamic Bank which shall be composed of not more than five (5) members. mortgage or otherwise dispose of the same. (7) To perform the following banking services: (a) Open current or checking accounts. shall be a body corporate and shall have the power: (1) T o prescribe its bylaws and its operating policies. (4) T o borrow money. alter and use a corporate seal. Functions of the Shari'a Advisory Council. to sue and be sued. Shari'a Advisory Council. The Board is hereby authorized to select the members of the first Shari'a Advisory Council and to determine their remunerations. Islamic Bank's Powers. — The Al-Amanah Islamic Investment Bank of the Philippines. preferably from the qualified Muslim sector. The members shall be elected at a general shareholders meeting of the Islamic Bank every three (3) years from a list of nominees prepared by the Board of Directors of the Islamic Bank. — The functions of the Shari'a Advisory Council shall be to offer advice and undertake reviews pertaining to the application of the principles and rulings of the Islamic Shari'a to the Islamic Bank's transactions. (6) To establish such branches and agencies in provinces and cities in the Philippines. (8) T o act as an official government depository. muquaradah (noninterest-bearing bonds). or its branches. (10) T o carry out financing and joint investment operations by way of mudarabah partnership. (l) Undertake various investments in all transactions allowed by Islamic Shari'a in such a way that shall not permit the haram (forbidden). (e) Buy and sell foreign exchange. (k) Issue shares for the account of institutions and companies assisted by the Bank in meeting subscription calls or augmenting their capital and/or fund requirements as may be allowed by law. and to invest funds directly in various projects or through the use of funds whose owners desire to invest jointly with other resources available to the Islamic Bank on a joint mudarabah basis. to be used by the Bank in its financing operations for projects that will promote the economic development primarily of the Autonomous Region. (f) Act as correspondent of banks and institutions to handle remittances or any fund transfers. including foreign governments. (c) Accept investment account placements and invest the same for a term with the Islamic Bank's funds in Islamically permissible transactions on participation basis. (9) T o issue investment participation certificates. (i) Provide financing with or without collateral by way of leasing. debentures. cd i . collaterals and/or the renewal or refinancing of the same. negotiate notes and bills of exchange and other evidence of indebtedness under the universally accepted Islamic financial instruments. (11) T o invest in equities of the following allied undertakings: (a) Warehousing companies. (b) L easing companies. nor forbid the halal (permissible). (h) Act as collection agent insofar as the payment orders. musharaka joint venture or by decreasing participation. subdivisions and instrumentalities and of government-owned or controlled corporations. organizations and individuals. bills of exchange or other commercial documents are exclusive of riba or interest prohibitions. companies. or cost plus profit sales arrangement. (g) A ccept drafts and issue letters of credit or letters of guarantee. (j) Handle storage operations for goods or commodity financing secured by warehouse receipts presented to the Bank.(b) Open savings accounts for safekeeping or custody with no participation in profit and losses except unless otherwise authorized by the account holders to be invested. murabaha purchasing for others on a cost-plus financing arrangement. (d) Accept foreign currency deposits from banks. particularly those doing business in the autonomous region. sale and leaseback. with the approval of the Monetary Board of the Central Bank of the Philippines. subject to existing limitations imposed by law. and to exercise further the general powers mentioned in the Corporation Law and the General Banking Act. (12) T o exercise the powers granted under this Charter and such incidental powers as may be necessary to carry on its business. insofar as they are not inconsistent or incompatible with the provisions of this Charter. and (f) Such other similar activities as the Monetary Board of the Central Bank of the Philippines has declared or may declare as appropriate from time to time.(c) Storage companies. (e) Companies engaged in the management of mutual funds but not in the mutual funds themselves. (d) S afe deposit box companies. .