Article 149Supplement v1, p. 149

COMMERCIAL LAWS SUPPLEMENT

nationals, may bid and take part in any sale of such land

as a consequence of such mortgage, avail of enforcement

proceedings, take possession, and transfer their rights to

qualified Philippine nationals for a period not exceeding

five (5) years from actual possession: Provided, further ,

That title to said land shall not be transferred to such

lending companies: Provided, finally , That investments of

a lending company shall be in accordance with the

provisions of the Constitution. (as amended by RA No

10881)

SEC. 7. Amount and Charges on Loans . - A lending

company

may

grant

loans

in

such

amounts

and

reasonable interest rates and charges as may be agreed

upon between the lending company and the debtor:

Provided , That the agreement shall be in compliance with

the provisions of Republic Act No. 3765, otherwise known

as the "Truth in Lending Act" and Republic Act 7394,

otherwise

known

as

the

"Consumer

Act

of

the

Philippines": Provided , further , That the Monetary Board,

in consultation with the SEC and the industry, may

prescribe such interest rate as may be warranted by

prevailing economic and social conditions.

SEC.

8.

Maintenance

of

Books

of

Accounts

and

Records . - Every lending company shall maintain books

of accounts and records as may be required by the SEC

and prescribed by the Bureau of Internal Revenue and

other government agencies. In case a lending company

engages in other businesses, it shall maintain separate

books of accounts for these businesses.

The Manual of Accounts prescribed by the BSP for

lending investors shall continue to be adopted by lending

companies for uniform recording and reporting of their

operations, until a new Manual of Accounts shall have

been prescribed by the SEC.

It shall issue the appropriate instruments and documents

to the parties concerned to evidence its lending and

borrowing transactions.

SEC. 9. Authority of the SEC . - The SEC is hereby

authorized to:

(a) Create a new division or bureau within its control to

regulate and supervise the operations and activities of

lending companies in the country;

(b)

Issue

rules

and

regulations

to

implement

the

provisions contained herein;

(c) Issue rules and regulations on, among other things,

minimum capitalization, uses of funds received, method

of marketing and distribution, maturity of funds received,

restrictions or outright prohibition of purchases or sales of

receivables with or without recourse basis;

(d) Require from lending companies reports of condition

and

such

other

reports

necessary

to

determine

compliance with the provisions of this Act;

(e)

Exercise

visitorial

powers

whenever

deemed

necessary; and

(f)

Impose

such

administrative

sanctions

including

suspension

or

revocation

of

the

lending

company's

authority to operate and the imposition of fines for

violations of this Act and regulations issued by the SEC in

pursuance thereto.

SEC. 10. Implementing Rules and Regulations . – Within

three months after the approval of this Act, the SEC shall

promulgate

the

necessary

rules

and

regulations

implementing the provisions of this Act.

SEC. 11. Delineation of Authority between SEC and the

BSP . - Lending companies shall be under the supervision

and

regulation

of

the SEC: Provided , however , That

lending companies which are subsidiaries and affiliates of

banks

and

quasi-banks

shall

be

subject

to

BSP

supervision and examination in accordance with Republic

Act No. 7653: Provider further, That the Monetary Board,

after being satisfied that there is reasonable ground to

believe that a lending company is being used as a

conduit by a bank, quasi-bank or their subsidiary/affiliate

to circumvent or violate BSP rules and regulations, may

order an examination of the lending company's books

and accounts.

SEC. 12. Penalty . - A fine of not less than Ten Thousand

Pesos (P10,000.00) and not more than Fifty thousand

pesos(P50,000.00) or imprisonment of not less than six

months but not more than ten (10) years or both, at the

discretion of the court, shall be imposed upon:

1. Any person who shall engage in the business of a

lending company without a validly subsisting authority to

operate from the SEC.

2. The president, treasurer and other officers of the

corporation, including the managing officer thereof, who

shall knowingly and willingly:

a. Engage in the business of a lending company without a

validly subsisting authority to operate from the SEC;

b. Hold themselves out to be a lending company, 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 a trade or firm name containing the words

"lending company" or "lending investor" or any other

designation that would give the public the impression

that it is engaged in the business of a lending company

as defined in this Act without authority; and

d. Violate the provisions of this Act.

3. Any officer, employee, or agent of a lending 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; and

b. Overvalue or aid in overvaluing any security for the

purpose of influencing in any way the action of the

company in any loan, or discounting line.

4. Any officer, employee or examiner of the SEC directly

charged with the implementation of this Act or of other

government agencies who shall commit, connive, aid, or

assist in the commission of acts enumerated under

Subsections 1 and 2 of this Section.

SEC.

13.

Matters

not

Covered

by

this

Act . – The

provisions of Republic Act No. 3765, otherwise known as

the "Truth in Lending Act", Republic Act No. 7394 or the

"Consumer Act of the Philippines" and other existing

laws, insofar as they are not in conflict with any provision

of

this

Act,

shall

apply

in

matters

not

otherwise

specifically provided in this Act.

SEC. 14. Repealing Clause . - All laws, executive orders,

letters of instruction, rules and regulations, or provisions

thereof which are inconsistent with the provisions of this

Act

are

hereby

repealed,

amended

or

modified

accordingly.

SEC. 15. Separability Clause . - If any portion hereof shall

be held invalid or unconstitutional, such invalidity or

unconstitutionality shall not affect the other provisions

which shall remain in full force and effect.

SEC. 16. Effectivity . - This Act shall take effect fifteen (15)

days

after

its

publication

in

at

least

two

national

newspapers of general circulation.

RA No 9505 | Personal Equity and

Retirement Account (PERA) Act of 2008

August 22, 2008

AN ACT ESTABLISHING A PROVIDENT PERSONAL

SAVINGS PLAN, KNOWN AS THE PERSONAL EQUITY

AND RETIREMENT ACCOUNT (PERA)

Be

it

enacted

by

the

Senate

and

House

of

Representatives

of

the

Philippines

in

Congress

assembled: :

© Compiled by RGL

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