WHEREAS,
the Charter of the Philippine National Bank was amended by Presidential
Decrees Nos. 64 and 171 to incorporate certain changes and
modifications, particularly certain proposals recommended in the report
of an official banking survey commission;chanroblesvirtualawlibrary
WHEREAS, the Bank Charter needs further amendment and modification to
enable the Bank to carry out it assigned role in the economic
development of the country under the program of the New Society;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, Commander-in-Chief of all the
Armed Forces of the Philippines, pursuant to Proclamation No. 1081,
dated September 21, 1972, as amended, and in order to effect desire
changes and reforms in the social, economic and political structures of
our society, do hereby order and decree as follows:cralaw:red
Section 1. Section two, paragraph (i), of Republic
Act Numbered Thirteen Hundred, as amended, is further amended to read
as follows: chanroblesvirtualawlibrary
"Sec. 2. Corporate powers and duties. — The said
National Bank, upon organization, shall be a body corporate and shall
have power to.
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(i) With the approval of the President of the
Philippines, to issue either in the Philippines or externally, all
types of bonds, promissory notes, debentures, certificates of
indebtedness, or other debt instruments whether senior, unsecured or
subordinated obligations, including but not limited to capital notes
under such terms and conditions as may be determined by the Board of
Directors, which may be:cralaw:red
a. Secured by credits real estate or other assets of
the Bank but not in excess of 90% thereof, or without such security and
purely on an unsecured or subordinated basis;chanroblesvirtualawlibrary
b. Long-term, medium-term or short-term;chanroblesvirtualawlibrary
c. With fixed interest rate or floating interest rate;chanroblesvirtualawlibrary
d. Denominated either in the lawful legal tender of
the Philippines or in such foreign currencies which are eligible for
the foreign exchange reserves of the Central Bank of the Philippines;
and
e. With such other features and requirements which in
its discretion are deemed necessary.
These bond, debentures, promissory notes, certificates of indebtedness,
or other debt instruments shall be unconditionally guaranteed as to
principal and interest by the Republic of the Philippines: Provided,
however, that the Bank is also authorized to issue these instruments
without the guaranty of the Republic of the Philippines;chanroblesvirtualawlibrary
These bonds, debentures, promissory notes, certificates of
indebtedness, or other instruments, shall be exempt, both as to
principal and interest, from any and all taxes imposed by the
Government or any of its subdivision." chanroblesvirtualawlibrary
Section 2. Repealing clause. — All acts, executive
orders, administrative orders, proclamations, rules and regulations or
parts thereof inconsistent with any of the provision of this Act are
hereby repealed or modified accordingly.
Section 3. This Decree shall take effect
immediately. chanroblesvirtualawlibrary
Done in the City of Manila,
this 18th day of October, in the year of Our Lord, nineteen hundred and
seventy-three.
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