A
collection of Philippine laws, statutes and codes
not
included or cited in the main
indices
of
the
Chan Robles Virtual Law Library
PRESIDENTIAL DECREE NO. 1461
|
PRESIDENTIAL DECREE NO. 1461
- FURTHER AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 85, AS
AMENDED OTHERWISE KNOWN AS THE DBP CHARTER
|
chanroblesvirtualawlibrary
WHEREAS,
the Development Bank of the Philippines is the Government Agency
entrusted with the task of providing credit facilities for the
rehabilitation, development and expansion of the country's agriculture
and industry, the reconstruction of property damaged by war, the
broadening and diversification of the national economy and the
promotion and establishment of private development banks in the
provinces and cities; and
WHEREAS, there is need to amend the charter of the DBP to update its
powers and functions and thus make it more relevant and adaptable to
present circumstances and changing times;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
order and decree the following:cralaw:red
"Section 2. Corporation Powers. — The Development
Bank of the Philippines shall have the power:cralaw:red
(a) To grant loans for home building or home
financing projects and for the rehabilitation, the establishment or
development of any agricultural and/or industrial enterprise, including
public utilities, mining, livestock industry and fishing; whether
offshore or inland;chanroblesvirtualawlibrary
(b) To purchase preferred redeemable shares of stock
securities other than shares of stock, and obligations of, and to grant
loans to, any agricultural and industrial enterprise mentioned in
paragraph (a), to finance their fixed and operating capital
requirements. All purchases of preferred redeemable shares, securities
and obligations and all loans shall be of such sound value or so
secured, as reasonably to assure retirement of such shares, securities
or obligations or repayment of the loan; and shall be granted only
under such terms, conditions and restrictions as the bank shall
determine;chanroblesvirtualawlibrary
(c) To grant loans to provincial, city and municipal
governments for the rehabilitation, construction or reconstruction of
public markets, waterworks, tall bridges, slaughterhouses, for
cadastral surveys and other self-liquidating or income-producing
services, or the purchase and acquisition of municipal electric power
plant to agencies and corporations owned or controlled by the
Government of the Republic of the Philippines for the production and
distribution of electric power, for the purchase and subdivision of
rural and urban estates, for housing projects and for irrigation and
water-works systems;chanroblesvirtualawlibrary
(d) To grant loans to cooperative associations to
facilitate production, the marketing of crops, and the acquisition of
essential commodities;chanroblesvirtualawlibrary
(e) To grant loans to individual employees in a
government-owned or controlled corporation or private corporation
engaged in the development and/or expansion of agriculture or industry,
for the purpose of buying shares of stock directly from such
corporation for the purpose of enabling them to participate in the
ownership and to share in the profits thereof: Provided, That the
yearly amortization of such loan shall not exceed ten per cent of the
total annual salary and wages of the borrower; Provided, Further, That
such loans shall be payable in full within a period of not exceeding
ten years; Provided, finally, That if the borrower should sell any
share of stock acquired by him from the proceeds of such loans, the
corporation that issued said share of stock shall have preference to
purchase the same;chanroblesvirtualawlibrary
(f) To underwrite, purchase, own, sell, mortgage or
otherwise dispose of stocks, bonds, debentures, securities and other
evidence of indebtedness issued for or in connection with any project
or enterprise referred to in the preceding paragraphs; chanroblesvirtualawlibrary
(g) To accept and manage trust funds and properties
and carry on the business of a trust corporation. All loans outstanding
as of the date of this Decree granted by the Bank at the instance of
the government are hereby deemed to have been undertaken as a trust
function and the corresponding funds thereof shall be provided by the
government;chanroblesvirtualawlibrary
(h) To organize, establish and operate subsidiary
corporations whenever necessary to better achieve the purposes of its
creation;chanroblesvirtualawlibrary
(i) To issue bonds, debentures, securities,
collaterals and other obligations and/or the renewal or the refunding
of the same upon recommendation of the Secretary of Finance and with
the approval of the President, but in no case to exceed at any one time
an aggregate amount equivalent to ten times of its paid-in capital and
surplus. These bonds and other obligations shall be redeemable at the
option of the Bank at or before maturity and in such manner as many be
stipulated therein and shall bear such rate of interest as may be fixed
by the Bank. Such obligations shall be secured by the assets of the
Bank including the stocks, bonds, debentures, and other securities
underwritten, purchased or held by it under the provisions of this Act.
The Bank shall provide for appropriate reserves for the redemption or
retirement of said obligations. Such obligations may be issued and
offered for sale at such price or prices as the Bank may determine, and
shall be exempt from taxation both as to principal and interest. The
said obligations guaranteed both as to principal and interest by the
Government of the Republic of the Philippines and such guaranty shall
be expressed on the face thereof;chanroblesvirtualawlibrary
In the event that the Bank shall be unable to pay debentures, bonds,
collaterals, notes or other such obligations issued by it, the
Secretary of Finance shall pay the amount thereof, which is hereby
appropriated out of any moneys in the National Treasury not otherwise
appropriated, and thereupon, to the extent of the amount so paid, the
Government of the Republic of the Philippines shall succeed to all the
rights of the holders of such bonds, notes, debentures, collaterals, or
other obligations.
Subject to the above provisions, the Bank is also authorized to issue
"Rehabilitation and development bonds" in denominations of not less
than fifty pesos nor more than one thousand pesos redeemable by the
Bank on demand at the option of the holder of said bonds, which may be
of the following types: (1) rehabilitation and development bonds at
progressive staggered interest and cumulative face value; and (2)
rehabilitation and development bonds bearing interest as may be
determined by the Board of Governors with the advice and consent of the
Secretary of Finance and upon approval by the Monetary Board, said
interest to become due and payable semi-annually and payment thereof to
be annotated on the back of each bond certificate. Maturity of both
types of bond shall be fixed by the Board of Governors but in no case
to exceed ten years.
The Board of Governors shall have the power to prescribe rules and
regulations for the issuance, reissuance, servicing, placement and
redemption of the herein authorized to be issued by the Bank as well as
the registration of such bonds at the request of the holders thereof,
with the approval of the Monetary Board of the Philippines;chanroblesvirtualawlibrary
(j) To adopt, alter, and use a corporate seal which
shall be judicially noticed; to make contracts; to borrow money; to
issue or own real and personal property; and to sell, mortgage, or
otherwise dispose of the same, to sue and be sued; to employ such
officers and personal as may be necessary to carry out the business of
the Bank; and otherwise to do and perform any and all things that may
be necessary or proper to carry out the purposes of the Bank;chanroblesvirtualawlibrary
(k) To subscribe out of its funds to the capital
stock of private provincial and city development banks created pursuant
to the provisions of Republic Act Numbered Four Thousand Ninety Three;chanroblesvirtualawlibrary
(l) The provisions of any law to the contrary
notwithstanding, to guarantee acceptance credits, loans, transactions,
or obligation of any person, co-partnership, association of corporation
in favor of any financing or banking institution, whether foreign or
domestic: Provided, That the proceeds of such acceptance credits, loans
transactions or obligations have been utilized or are earmarked for the
development and/or expansion of agriculture or industry;chanroblesvirtualawlibrary
(m) To issue performance bonds or guarantee to
secure the performance of contracts funded in foreign currency by
international financial institutions, provided such contractors are
domestic entities, enterprises or corporations the majority of the
capital of which is owned by citizens of the Philippines.
To guarantee or counter-guarantee performance bonds or guarantees
issued by Philippine or foreign banking and financial institutions, for
approved contracts abroad, or for foreign currency funded domestic
contracts, in favor of Philippine contractors, provided such
contractors are domestic entities, enterprises or corporations majority
of the capital of which is owned by citizens of the Philippines; and
(n) The provisions of any law to the contrary
notwithstanding the total liabilities of any person, company,
corporation or firm, or political subdivision of the government with
the exception of money borrowed against obligations of the Central Bank
or the Philippine Government, or borrowed with the full guarantee by
the Government of payment of principal and interest, shall exclusive of
guarantee under paragraph "1" of Section 2 hereof, at no time exceed
thirty (30%) percent of the paid-in capital and surplus of the
Bank". chanroblesvirtualawlibrary
Section 2. Section Three of Republic Act No. 85 as
amended, is hereby further amended to read as follows:cralaw:red
"Sec. 3. Capital Stock. — The capital stock of the
Bank shall be FIVE Billion pesos divided into FIVE million shares
having a par value of one thousand pesos each. The said capital stock
shall be fully subscribed by the government of the Republic of the
Philippines and payment of said subscription shall be as follows:cralaw:red
(a) At least fifty per centum (50%) of the surplus
account of the Bank as of June 30, 1962 and at least twenty per centum
(20%) of the net profits that may hereafter be realized as well as
profits that may be assigned as dividends to the shares of the
government shall be automatically applied to the payment of the
subscribed capital stock of the Government until the said capital stock
shall have been fully paid for, in which case the said profits shall be
utilized for such purposes as may be authorized by the Board of
Governors.
(b) The provisions of Section Three of Republic Act
Numbered Seventeen Hundred Eighty-Nine to the contrary notwithstanding,
and amount equivalent to fifty per cent of the proceeds from the sale
of reparations goods and services for fifteen years following the
approval of this Act, is hereby appropriated to cover the payment of
the unpaid subscription of the government to the capital stock of the
Bank: Provided, That seventy-five million pesos of such amount shall be
set aside as a trust fund for the purpose ofding the establishment of
private provincial and city development banks as provided in this Act.
(c) The portion of the stabilization tax allocated
for deposit to a Special Account with the Development Bank of the
Philippines, pursuant to Section 4 (c) of Republic Act Numbered Six
Thousand One Hundred Twenty Five, as amended, otherwise known as the
stabilization Tax Law, shall be automatically applied to the payment of
the Government's subscription to the Capital Stock of the Bank
effective as of the date or receipt thereof.
(d) The obligations of the Development Bank of the
Philippines as of April 30, 1973 represented by bonds issued by said
Bank and held by the Central Bank of the Philippines including interest
thereon rounded to the nearest thousand, and loans or advances made
under R.A. No. 625 and R.A. No. 2081, together with interest thereon,
rounded to the nearest thousand, shall be converted into paid-in
capital by the Government which shall be assume said obligations; and
for this purpose, the President of the Philippines, upon recommendation
of the Secretary of Finance, shall issue in favor of the Central Bank
of the Philippines treasury bonds notes or securities, in such amounts
as may be necessary for the settlement of said obligations and under
such terms and conditions as shall be recommended by the Secretary of
Finance in consultation with the Monetary Board.
(e) The Secretary of Finance is hereby authorized to
program and pay the unpaid subscription of the government corresponding
to the increase of the Bank's authorized capital stock from Three
Billion Pesos to Five Billion Pesos out of any funds in the National
Treasury not otherwise appropriated be they collections from any or all
taxes accruing to the general fund of proceeds from loans, the issuance
of bonds, treasury bills or notes which are hereby authorized to be
incurred or issued for the purpose."
Section 3. Section Four of Republic Act No. 85 as
amended, is hereby further amended to read as follows:cralaw:red
"Sec. 4. Loans. — The Bank may grant loans against
security of real estate and/or other acceptable assets including,
subject to the provision of existing laws, leasehold rights and permits
from the government: Provided, That any provision of law to the
contrary notwithstanding, the bank is authorized to grant loans on the
security of real estate without torrens title if the real estate has
been declared for purposes of taxation continuously for at least ten
years and applicant for loan and his predecessors in interest have been
in continuous and uninterrupted possession thereof in the concept of
owner for at least ten years, such possession to be established by
affidavits of the owners of all the properties adjoining such real
estate and other evidence that the Board of Governors may be deemed
necessary."
Section 4. Section Nine of Republic Act No. 85 as
amended, is hereby amended to read as follows:cralaw:red
"Sec. 9. A private development bank shall be
organized in the form of a stock corporation and its paid-up capital
stock shall not be less than four million pesos for Class A, two
million pesos for Class C: Provided, That at least seventy percent of
the capital stock subscribed by the private shareholders by the private
sector shall be owned and held by citizens of the Philippines:
Provided, Further, That if said subscription of private shareholders to
the capital stock of a private development bank cannot be secured or is
not available, the Bank or representation of the said private
shareholders and with the approval of its Board of Governors shall,
within thirty days from date of said approval by the Board of
Governors, subscribe to the capital stock of such development banks,
which shall be paid in full at the time of subscription out of the
trust fund hereinabove mentioned, in an amount equal to the fully paid
subscribed capital of the private stockholders: Provided, Further, That
such shares of stock subscribed by the bank shall be preferred shares
entitled to cumulative dividends at a rate of one per cent during the
first five years, two per cent during the following five years, and
three percent thereafter shall be preferred against common and other
preferred stockholders in the distribution of assets in the event of
liquidation, and shall be entitled to voting privileges; Provided,
Further, That additional subscriptions shall be entitled to dividend
rate to be determined by the bank; Provided, Further, That such
preferred shares of the bank may be sold at any time at par to private
individuals who are citizens of the Philippines and in the sale thereof
the qualified registered stockholders shall have the right of
pre-emption within one year from the date of offer in proportion of
their respective holdings, but in the absence of such buyers,
preference shall be given to residents of the province or city where
the development bank is located; Provided, Further, That such preferred
shares of stock shall be automatically converted to common shares when
sold to private individuals: Provided, Finally, That all members of the
Board of Directors of the private development banks shall be citizens
of the Philippines;"
Section 5. Section Twelve of Republic Act No. 85 as
amended, is hereby further amended to read as follows:cralaw:red
"Sec. 12. The trust fund shall be used by the Bank
in assisting private development banks as follows:cralaw:red
(a) To pay for its subscription to preferred shares
of stock in said private development banks in the manner and subject to
the terms and conditions prescribed in section nine hereof;chanroblesvirtualawlibrary
(b) To rediscount promissory notes and other credit
instruments held by the private development bank under the following
conditions and limitations.
(1) It charges such rediscount or interest rates as
it may determine taking into account that the main objective of the
private development banks is to engage in medium-and long-term loans
for economic development. The determination of such rediscount or
interest rates acceptable to the bank for purposes of this provision
shall be made by the said bank upon or immediately after the
commencement of operations of a private development bank;chanroblesvirtualawlibrary
(2) Funds so acquired shall be used only to finance
the establishment and operation of projects within the program of the
Bank, or along such projects and activities as the Bank may, from time
to time, approve."
"Sec. 14. Board of Governors. — The affairs and
business of the Bank shall be directed, its powers exercised, and its
property managed and preserved by a Board of Governors consisting of
the Chairman and eight other members to be appointed by the President
of the Philippines. The Chairman and four members of the Board to be
designated by the President shall render full time service to the Bank.
The term of office of the Chairman and other members of the Board shall
be seven years, except that of the first members which shall be one,
two, three, four, five, six and seven years and which shall be
specified in their respective appointments. The compensation of the
Chairman and other members of the Board shall be fixed by the President
of the Philippines who may remove any of them for cause.
The President may designate as Vice-Chairman one of the eight members
of the Board. In the absence or temporary incapacity of the Chairman,
the Vice-Chairman shall exercise the powers and functions of the
Chairman.
No person shall be appointed chairman or member of the Board of
Governors unless he be of good moral character and unquestionable
integrity and be of recognized competence in economics, agriculture,
industry, finance and/or banking.
* Section 7. The same Act is amended by adding after
Section Thirty thereof the following new Section to be denominated
Section Thirty One thereof:cralaw:red
"Sec. 31. The provision of any law to the contrary
notwithstanding all income of the Bank derived from its operations and
the exercise of its function shall be free from all past and future
assessment whatsoever except under Section 24 of the National Internal
Revenue Code. Taxes due to the National Government on income of the
bank under Section 24 of the National Internal Revenue Code shall,
beginning with taxes due on income for calendar year 1978, be
automatically applied to the payment of the subscribed capital stock of
the Government in the Bank."
Section 8. Repealing Clause. — The provisions of
laws, decrees, orders, rules and regulations or parts thereof which are
inconsistent with the provisions of this Decree are hereby repealed
accordingly.
Section 9. Effectivity. — This decree shall take
effect immediately.
Done in the City of Manila,
this 11th day of June, in the year of Our Lord, nineteen hundred and
seventy-eight.
* Copied verbatim from documents obtained directly
from Malacañang Records (missing Section 6).
|
Back
to Home
- Back
to Main
chanroblesvirtuallawlibrary
Since 19.07.98
|
