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PRESIDENTIAL DECREE NO. 1074
PRESIDENTIAL DECREE NO. 1074 -
CREATING THE EXPORT DEVELOPMENT CORPORATION OF THE PHILIPPINES,
DEFINING ITS POWERS AND FUNCTIONS AND FOR OTHER PURPOSES
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WHEREAS,
there is an immediate need to increase the country's foreign exchange
resources and to this end, it is necessary to expand foreign trade
through the promotion and diversification of the country's export
products and services, especially construction and engineering
services; chanroblesvirtualawlibrary
WHEREAS, a number of producers and exporters, including those engaged
in non-tradition products, has been found to be economically viable in
the export trade but unable to expand operations due to the inadequacy
of existing credit facilities;chanroblesvirtualawlibrary
WHEREAS, there is a need to improve, supplement and expand existing
credit facilities so as to adequately meet credit requirements for
exports, particularly non-traditional products and services; and
WHEREAS, to attain these ends, it is desirable and necessary that the
Government, in a joint venture with the private sector, establish an
implementing body corporate.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers in me vested by the Constitution, do hereby
order and decree:cralaw:red
Section 1. Corporate Body. — There is hereby created
a body corporate to be known
as the "Export Development Corporation of the Philippines" hereinafter
referred to as the Corporation.
Section 2. Principal Place of Business. — The
Corporation shall have its principal place of business in Metropolitan
Manila.
Section 3. Corporate Existence. — The Corporation
shall a have corporate existence for a period of fifty (50) years from
the date of this Decree. chanroblesvirtualawlibrary
Section 4. Purposes and Powers. — The Corporation is
hereby vested with the following purposes and powers:cralaw:red
a) To help, promote, develop and diversify exports,
particularly non-traditional products and services by providing
adequate financial and technical assistance in project promotion and
execution.
b) Without completing or supplanting but rather
supplementing and complementing the pending operations of existing
credit institutions, to provide financial assistance to producers and
exporters of the Philippine products with high priority, especially the
small and medium-scale industries which cannot meet the collateral
requirements of lending institutions and to this end, engage in:cralaw:red
1) Providing refinancing facilities to commercial
banks against export bills and other documents related primarily with
exports of Philippines products and services;chanroblesvirtualawlibrary
2) Discounting bills of other instruments
representing the credits that such producers and exporters grant to
foreign buyers;chanroblesvirtualawlibrary
3) Endorsing export credit instruments, and, in
general guaranteeing export credit;chanroblesvirtualawlibrary
4) Granting credits for export promotion activities
designed to open up new foreign markets and consolidating and expanding
existing ones;chanroblesvirtualawlibrary
5) Making advances for the payment of freight,
insurance, customs duties, storage fees, bidding and bonding fees and
other charges on export goods and services; chanroblesvirtualawlibrary
6) Providing credit for the production of export
goods in fulfillment of orders or contracts;chanroblesvirtualawlibrary
7) Buying, endorsing, selling and discounting export
bills and other documents issued in connection with export transactions;chanroblesvirtualawlibrary
8) Serving as intermediary, agent or broker for
export credits granted by international or regional financial
institutions;chanroblesvirtualawlibrary
9) Financing other activities that may be necessary
for the promotion, development and diversification of export products
and services;chanroblesvirtualawlibrary
10) Lending money against personal security or
against securities consisting of persons and real properties; and
11) Conducting all activities necessary to insure
that producers, exporters and service contractors are adequately
provided with comparable credit facilities available to foreign
competitors.
c) To provide technical assistance to producers and
exporters through acceleration and development of export-oriented
projects and project promotion and execution;chanroblesvirtualawlibrary
d) To search for areas where contribution of finance
or effort is of catalytic importance;chanroblesvirtualawlibrary
e) To borrow, raise, or obtain funds to support or
carry out its objects and purposes and/or to arrange financing or
equipment credit or any kind of financial technical assistance for its
own account or for the producers, exporters, service contractors from
private or governmental sources or from international lending
institutions and to secure any or all of the same, to the extent that
may be required, by any lawful guaranteed or counter-guarantee, by
pledge, mortgage or deed of trust, or by creating or suffering to exist
a charge or encumbrance, general or special, upon its revenue and/or
assets, and likewise, by similar guarantees, pledges, mortgages, liens
and other security arrangements to secure the performance by the
Corporation of any obligation or liability it may undertake for itself
or for the producers, exporters and service contractors;chanroblesvirtualawlibrary
f) To acquire by purchase, subscription, exchange,
assignment, give or otherwise, and to sell, assign, transfer, exchange,
mortgage, pledge, and deal in and otherwise to enjoy and dispose of,
any bonds, debenture, promissory notes, shares of capital stock and/or
other securities and/or obligation, created, negotiated or issued by
any corporation, or other entity foreign or domestic, and while the
owner thereof, to exercise all the rights, powers and privileges of
ownership, including the right to receive, collect and dispose of, any
and all dividends, interest and income derived therefrom, and the right
to vote on any shares of the capital stock, and upon bonds, debentures
and/or other securities, having voting power so owned;chanroblesvirtualawlibrary
g) To invest and deal with the funds of the
Corporation in such manner as may be deemed necessary and proper to
attain the objectives and purposes for which the Corporation has been
organized;chanroblesvirtualawlibrary
h) To sue and be sued; chanroblesvirtualawlibrary
i) To purchase, hold convey, sell, lease, let,
mortgage, encumber and otherwise deal with such real and personal
property as the purpose of the Corporation may require;chanroblesvirtualawlibrary
j) To establish and operate branches of offices in
the Philippines or abroad for the transaction of business for itself,
or in behalf of producers, exporters, and service contractors; and
k) To do all such other things and to transact all
business as may be directly or indirectly incidental or conducive to
the attainment of the above objectives.
Section 5. Capital Structures and Commencement of
Operations. — The Corporation shall have an authorized capital stock of
ONE BILLION PESOS (P1,000,000,000.00) derived into TEN MILLION
(P10,000,000) common shares with a par value of ONE HUNDRED PESOS
(P100.00) per share.
The capital stock shall be subscribed and paid-up as follows:cralaw:red
a) Forty percent (40%) thereof of FOUR HUNDRED
MILLION PESOS (P400,000,000.00) represented by FOUR MILLION
(P4,000,000) shares shall be offered for subscription to the private
sector, provided that at least TWENTY MILLION PESOS (P20,000,000,00)
represented TWO HUNDRED THOUSAND (200,000) shares shall be paid up;
and chanroblesvirtualawlibrary
b) Sixty per cent (60%) there of or SIX HUNDRED
MILLION PESOS (P600,000,000.00) represented by SIX MILLION (6,000,000)
shares shall be subscribed by the Republic of the Philippines and paid
as follows:cralaw:red
1) THIRTY MILLION PESOS (P30,000,000.00) represented
by THREE HUNDRED THOUSAND (300,000) shares upon the effectivity of this
Decree. For this purpose, the sum of THIRTY MILLION PESOS
(P30,000,000,00) is hereby set aside and appropriated out of the
General Fund no otherwise appropriated; and
2) payments for the unpaid subscription of the
Government shall be made proportionately from time to time as
additional payments on the capital stock subscribed by the private
sector are made to maintain the 60-40 equity ratio between the
Government and the private sector.
c) Subscription by foreign institutional or
individual investigation to the capital stock earmarked for the private
sector may be allowed, subject to existing laws and regulations.
The Corporation shall commence operations upon the organization of its
Board of Directors and the release by the Budget Commissioner of the
THIRTY MILLION PESOS (P30,000,000.00) representing the initial payment
for the subscription of the Government to the capital stock.
Section 6. Board of Directors. — The powers and
functions of the Corporation shall be exercised by a Board of
Directors, hereinafter referred to as the Board which shall be composed
of nine (9) members as follows: chanroblesvirtualawlibrary
a) The Chairman, Philippine Export Council, who
shall act as the Chairman of the Board;chanroblesvirtualawlibrary
b) The President of the Corporation, who shall act
as Vice-Chairman;chanroblesvirtualawlibrary
c) The Governor, Central Bank of the Philippines or
his authorized representative;chanroblesvirtualawlibrary
d) The Secretary of Trade or his authorized
representative;chanroblesvirtualawlibrary
e) The Chairman, Board of Investments or his
authorized representative;chanroblesvirtualawlibrary
f) The Secretary, Department of Finance of his
authorized representative; and
g) Three (3) members to be appointed by the
President of the Philippines representing the private sector for a term
of six (6) years, Provided, That the first appointees shall have terms
of office of two (2), four (4) and six (6) years respectively.
The Board of Directors shall convene as frequently is necessary to
discharge its responsibilities but shall meet at least once every two
weeks. The members of the Board or their respective substitute, except
the President shall receive a per diem for every board meeting
attended. The Philippines but may not exceed FOUR HUNDRED PESOS
(P400.0) nor the sum of FOUR THOUSAND PESOS (P4,000.00) PESOS for any
single month.
Section 7. Powers and Functions of the Board. — The
Board shall be the governing body which shall have full power and
authority to administer the affairs of the Corporation including but
not limited to the following: chanroblesvirtualawlibrary
a) To adopt by-laws, rules and regulations as may be
necessary to carry out the objectives and purposes of the Corporation;chanroblesvirtualawlibrary
b) To appoint all officers and employees of the
Corporation; to fix their salaries, wages and other conditions of
employment; and to discipline or remove them;chanroblesvirtualawlibrary
c) To approve the annual budget and authorized such
expenditures as are in the interest of the effective administration and
operations of the Corporation;chanroblesvirtualawlibrary
d) To exercise such other powers as may be necessary
for the achievements of the purposes for which the corporation was
organized.
Section 8. The President. — The President shall be
the Chief Executive of the Corporation and shall be appointed by the
President of the Philippines, preferably from the private sector, for
at a term six (6) years. He must be a person of unquestionable
integrity and responsibility with considerable finance and trade. His
compensation, allowances and emoluments shall be fixed by the Board of
the Directors of the Corporation with the approval of the President of
the Philippines.
Section 9. Borrowing Powers. — The Corporation is
authorized to borrow from domestic and foreign private and government
financial institutions, including the Central Bank of the Philippines
which is hereby authorized to extend financial assistance to the
Corporation, and from international and regional financial
institutions, such funds as are from time to time required for the
operations of the Corporation. No part of the proceeds of domestic
and/or foreign borrowings shall be used for administrative operating
expenses.
Notwithstanding the provisions of any special or general law to the
contrary, the Corporation is hereby authorized to secure foreign loans
or credits in an amount not exceeding, in the aggregate at any one
time, the sum of ONE BILLION UNITED STATES DOLLARS ($1,000,000,000.00),
subject to prior approval by the Central Bank of the Philippines, on
such terms and conditions as it shall deem appropriate for the
accomplishment of its purpose and to enter into and execute agreements
and other documents specifying such terms and conditions. Provided,
That whenever conditions warrant, the President of the Philippines may
increase the ceiling prescribed herein upon the recommendation of the
Board of Directors of the Corporation, the Secretary of Finance, and
the Monetary Board.
Section 10. Guaranty of National Government. — The
government shall guarantee the payment of both the principal and
interest of domestic and foreign loans contracted under the preceding
section, with the approval of the President of the Philippines, upon
the recommendation of the Secretary of Finance.
Section 11. Advisory Committee. — In the performance
of its functions, the board of Directors shall be assisted by an
Advisory Committee the members of which shall be drawn from the
nominees of the private sector.
Section 12. The Exemptions. — Notwithstanding the
provisions of any general or special law to the contrary, the
Corporation, its assets, property, income and transactions, shall be
exempt from the payment of all forms of taxes, duties, fees, appeal,
bonds, superseding bonds, in any court of administrative proceedings.
Section 13. Applicability of the Corporation Law. —
The provisions of the Corporation Law shall apply to the Corporation
insofar as they are not inconsistent with the provisions of this Decree.
Section 14. Repealing Clause. — All laws and
executive orders and parts thereof inconsistent herewith are hereby
repealed. chanroblesvirtualawlibrary
Section 15. Effectivity. — This Decree shall take
effect immediately.
Done in the City of Manila,
this 25th day of January, in the year of Our Lord, nineteen hundred and
seventy-seven.
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