Article 148Supplement v1, p. 148

COMMERCIAL LAWS SUPPLEMENT

(4) Name of lessee;

(5) Date of lease agreement or schedule;

(6) Date of expiry of lease; and

(7) Date of entry in lease registry.

(Financing Company Act of 1998, Republic Act No. 8556,

[February 26, 1998])

Section 14. Penalty. A fine of not less than Ten thousand

pesos (P10,000.00) and not more than One hundred

thousand pesos (P100,000.00) or imprisonment for not

more than six (6) months or both, at the discretion of the

court, shall be imposed upon:

(1) Persons, associations, partnerships or corporations,

including the managing officer thereof, that shall:

(a) Engage in the business of a financing company

without authority from the Securities and Exchange

Commission;

(b) Hold themselves out to be financing companies,

either through advertisement in whatever form, whether

in its stationery, commercial paper or other document, or

through other representations without authority;

(c) Make use of trade or firm name containing the words

'Financing Company' or 'Leasing Company' or 'Finance

and

Leasing

Company

or

'Finance

and

Investment

Company' or any other designation that would give the

public the impression that it is engaged in the business of

a financing company or leasing company as defined in

this Act without authority; and

(d) Violate the provisions of this Act.

(2)

Any

officer,

employee,

or

agent

of

a

financing

company who shall:

(a) Knowingly and willingly make any statement in any

application, report or document required to be filed

under this Act, which statement is false or misleading

with respect to any material fact; or

(b) Overvalue or aid in overvaluing any securities for the

purpose of influencing in any way the action of the

company on any loan, or discounting line.

(3) Any officer, employee or examiner of the Securities

and Exchange Commission directly charged with the

implementation of this Act who shall commit, connive,

aid or assist in the commission of acts enumerated under

subsections 1 and 2 of this section.

(Financing Company Act of 1998, Republic Act No. 8556,

[February 26, 1998]) (10a)

Section 15. Separability of Clause. If any provision or

section of this Act or the application thereof to any

person

or

circumstances

is

held

invalid,

the

other

provisions or sections hereof and the application of such

provisions or sections to other persons or circumstances

shall not be affected thereby. (11a)

Section 16. Repealing Clause. All Acts inconsistent with

this Act are hereby repealed. (12a)

Section 13. Effectivity. This Act shall take effect upon its

approval.

SECTION 13. Effectivity . — This Act shall take effect fifteen

(15) days following the completion of its publication in the

Official

Gazette

or

in

two

newspapers

of

general

circulation.

Approved: August 4, 1969

RA No 9474 | Lending Company

Regulation Act of 2007

May 22, 2007

AN ACT GOVERNING THE ESTABLISHMENT, OPERATION

AND REGULATION OF LENDING COMPANIES

Be

it

enacted

by

the

Senate

and

the

House

of

Representatives

of

the

Philippines

in

Congress

assembled :

SECTION 1. Title . - This Act shall be known as the

"" Lending Company Regulation Act of 2007 "".

SEC. 2. Declaration of Policy . - It is hereby declared the

policy of the State to regulate the establishment of

lending companies and to place their operation on a

sound,

efficient

and

stable

condition

to

derive

the

optimum advantages from them as an additional source

of credit; to prevent and mitigate, as far as practicable,

practices prejudicial to public interest; and to lay down

the minimum requirements and standards under which

they may be established and do business.

SEC.

3.

Definition

of

Terms .

-

For

purposes

of

implementing this Act, the following definitions shall

apply:

(a) Lending Company shall refer to a corporation engaged

in granting loans from its own capital funds or from

funds sourced from not more than nineteen (19) persons.

It shall not be deemed to include banking institutions,

investment

houses,

savings

and

loan

associations,

financing companies, pawnshops, insurance companies,

cooperatives

and

other

credit

institutions

already

regulated by law. The term shall be synonymous with

lending investors.

(b) Debtor shall refer to a borrower or person granted a

loan by the lending company.

(c)

Quasi-Bank

shall

refer

to

a

non-bank

financial

institution

authorized

by

the

BSP

to

engage

in

quasi-banking functions and to borrow funds from more

than

nineteen

(19)

lenders

through

the

issuance,

endorsement or assignment with recourse or acceptance

of deposit substitutes as defined in Section 95 of Republic

Act No. 7653 (the ":New Central Bank Act":) for purposes of

relending

or

purchasing

of

receivables

and

other

obligations.

(d) Subsidiary shall refer to a corporation more than fifty

percent (50%) of the voting stock of which is owned by a

bank or quasi-bank.

(e) Affiliate shall refer to a corporation, the voting stock of

which, to the extent of fifty percent (50%) or less, is owned

by a bank or quasi-bank which is related or linked to such

institution through common stockholders or such other

factors as may be determined by the Monetary Board of

the BSP.

(f)

SEC

shall

refer

to

the

Securities

and

Exchange

Commission.

(g) BSP shall refer to the Bangko Sentral ng Pilipinas.

SEC. 4. Form of Organization . - A lending company shall

be

established only as a corporation: Provided That

existing

lending

investors

organized

as

single

proprietorships or partnerships shall be disallowed from

engaging in the business of granting loans to the public

one year after the date of effectivity of this Act.

No

lending

company

shall

conduct business unless

granted an authority to operate by the SEC.

SEC. 5. Capital . - The minimum paid in capital of any

lending company which may be established after the

effectivity

of

this

Act

shall

be

One

million

pesos

(P1,000,000.00):

Provided ,

however ,

That

lending

companies established and in operation prior thereto

shall comply with the minimum capitalization required

under the provisions of this Section within such time as

may be prescribed by the SEC which time shall, in no

case, be less than three years from the date of effectivity

of this Act and: Provided , further , That the SEC may

prescribe a higher minimum capitalization if warranted

by circumstances.

SEC. 6. Citizenship Requirements . - A lending company

may be owned up to one hundred percent (100%) by

foreign nationals: Provided, however , That where the loan

is secured by land, a lending company, more than forty

percent (40%) of whose capital is owned by foreign

© Compiled by RGL

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