WHEREAS, in
line with the objectives of rapid economic growth, it is necessary for
the Government to provide massive credit financing for the development
and expansion of industry and agriculture; chanroblesvirtualawlibrary
WHEREAS, the Development Bank of the Philippines is one of the primary
agencies of the Government which provides credit facilities for
economic development;chanroblesvirtualawlibrary
WHEREAS, under its Charter (Republic Act No. 2081, as amended) the
Development Bank of the Philippines has an authorized capital of P2
billion fully subscribed by the Government of which only P408.7 million
has been paid;chanroblesvirtualawlibrary
WHEREAS, in accordance with the findings of the Performance Evaluation
Team which conducted an audit of the financial affairs and operations
of the Development Bank of the Philippines pursuant to Presidential
Memorandum Order No. 247, Series of 1971, it is desirable to increase
the capital stock and paid-up capital of the said Bank to enable it to
sustain the credit requirements of a rapidly expanding economy;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers in me vested by the Constitution as
Commander-in-Chief of all the Armed Forces of the Philippines, and
pursuant to Proclamation No. 1081, dated September 21, 1972 and General
Order No. 1 dated September 22, 1972 as amended, and in order to effect
the desired changes and reforms in the social, economic, and political
structure of our Society, do hereby order and decree the amendment of
Republic Act No. 2081, as amended, as follows:cralaw:red
Section 1. Section Three of R.A. 2081, as amended is
hereby amended to read as follows: chanroblesvirtualawlibrary
"Sec. 3. Capital Stock. — The capital stock of the
Bank shall be three billion pesos divided into three 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 the 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 of 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,
an 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." chanroblesvirtualawlibrary
(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 of 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 Central Bank of the Philippines including interest
thereon, rounded to the nearest thousand, and loans or advances made
under R.A. No. 265 and R.A. 2081, together with interest thereon,
rounded to the nearest thousand, shall be converted into paid-in
capital by the Government which shall 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. chanroblesvirtualawlibrary
Section 2. This Decree shall take effect immediately.
Done in the City of Manila,
this 19th day of May, in the year of Our Lord, nineteen hundred and
seventy-three.
|