Article 164Supplement v1, p. 164

COMMERCIAL LAWS SUPPLEMENT

restriction on the locations of such additional branches is

hereby lifted.

The existing Philippine branches of foreign banks shall

comply within one (1) year from the effectivity of this Act

with the minimum capital requirements as prescribed

under Section 4(ii) of this Act, unless otherwise extended

by the Monetary Board.

SECTION

10.

Transitory

Provisions .

—

Foreign

banks

operating through branches in the Philippines upon the

effectivity of this Act, shall be eligible for the privilege of

establishing up to six (6) additional branches under the

same terms and conditions required by Section 4 (n)

hereof: Provided , That for any branch additional to what is

existing at the time of the effectivity of this Act, the

prescribed

permanently

assigned

capital

shall

be

complied with immediately: Provided, further , That a

foreign bank may open three (3) branches in the location

of its choice and the next three (3) branches in locations

designated by the Monetary Board to insure balanced

economic development in all the regions.

The existing Philippine branches of foreign banks shall be

given one-and-a-half (1 1/2) years from the effectivity of

this

Act

to

comply

with

the

minimum

capital

requirements as prescribed under Section 4 (ii) of this Act.

SECTION 11. Separability Clause . — If any provision of this

Act is declared unconstitutional, the same shall not affect

the validity of the other provisions not affected thereby.

SECTION 12. Applicability of Other Banking Laws . — The

provisions of Republic Act No. 7653, otherwise known as

the New Central Bank Act and the provisions of Republic

Act No. 8791, otherwise known as The General Banking

Law of 2000′, insofar as they are applicable and not in

conflict with any provision of this Act, shall apply to banks

authorized pursuant to this Act. (as amended by RA No

10641)

SECTION 13. Rule-Making Powers of the Monetary Board

of the Bangko Sentral ng Pilipinas and Compliance

Reports. – The Monetary Board is hereby authorized to

issue such rules and regulations as may be needed to

implement "the provisions of this Act. On or before May

30 of each year, the Monetary Board shall file a written

report to Congress and its respective Banks Committees,

on the developments in the implementation of this Act.

The implementing rules and regulations of this Act shall

be published in at least two (2) newspapers of general

circulation. (as amended by RA No 10641)

SECTION 14. Amendment and Repeal of Inconsistent

Laws . — Sections 11, 12, 12-A, 12-B, 13, 14-A, 21-B, and 68 of

Republic Act No. 337 , as amended, otherwise known as

the General Banking Act ; Sections 4 and 5 of Republic Act

No. 7353 , otherwise known as the Rural Banks Act;

Sections 4 and 14 of Republic Act No. 3779 , as amended,

otherwise known as the Savings and Loan Association

Act; and Section 4 of Republic Act No. 4093 , as amended,

otherwise known as the Private Development Banks Act

insofar as they are inconsistent with this Act, are hereby

repealed or modified accordingly.

SECTION 15. Effectivity Clause . — This Act shall take effect

fifteen (15) days following its publication in the Official

Gazette or in two (2) national newspapers of general

circulation.

Approved: May 18, 1994

Published in Malaya and the Philippine Times Journal on

May 21, 1994.

RA No 9178 | Barangay Micro Business

Enterprises (BMBE's) Act of 2002

November 13, 2002

AN ACT TO PROMOTE THE ESTABLISHMENT OF

BARANGAY MICRO BUSINESS ENTERPRISES (BMBEs),

PROVIDING INCENTIVES AND BENEFITS THEREFOR,

AND FOR OTHER PURPOSES.

Be

it

enacted

by

the

Senate

and

House

of

Representatives

of

the

Philippines

in

Congress

assembled.

PRELIMINARY PROVISIONS

Section 1. Short Title – This Act shall be known as the

"Barangay Micro Business Enterprises (BMBE's) Act of

2002."

Section 2. Declaration of Policy – It is hereby declared to

be

the

policy

of the State to hasten the country's

economic development by encouraging the formation

and

growth

of

barangay micro business enterprises

which

effectively

serve

as

seedbeds

of

Filipino

entrepreneurial talents, and intergranting those in the

informal sector with the mainstream economy, through

the rationalization of bureaucratic restrictions, the active

granting

of

incentives

and

benefits

to

generate

much-needed employment and alleviate poverty.

Section 3. Definition of Terms – As used in this Act, the

following terms shall mean:

(a)

"Barangay

Micro

Business Enterprise," hereinafter

referred to as BMBE, refers to any business entity or

enterprise engaged in the production, processing or

manufacturing of products or commodities, including

agro-processing, trading and services, whose total assets

including those arising from loans but exclusive of the

land on which the particular business entity's office, plant

and equipment are situated, shall not be more than

Three Million Pesos (P3,000,000.00) The Above definition

shall be subjected to review and upward adjustment by

the SMED Council, as mandated under Republic Act No.

6977, as amended by Republic Act No. 8289.

For the purpose of this Act, "service" shall exclude those

rendered by any one, who is duly licensed government

after having passed a government licensure examination,

in connection with the exercise of one's profession.

(b) "Certificate of Authority" is the certificate issued

granting the authority to the registered BMBE to operate

and be entitled to the benefits and privileges accorded

thereto.

(c)

"Assets"

refers to all kinds of properties, real or

personal, owned by the BMBE and used for the conduct

of its business as defined by the SMED Council: Provided,

That for the purpose of exemption from taxes and fees

under

this

Act,

this

term

shall

mean

all

kinds

of

properties, real or personal, owned and/or used by the

BMBE for the conduct of its business as defined by the

SMED Council.

(d) "Registration" refers to the inclusion of BMBE in the

BMBE Registry of a city or municipality.

(e) "Financing" refers to all borrowings of the BMBE from

all sources after registration.

REGISTRATION AND OPERATION OF BMBE

Section 4. Registration and Fees - The Office of the

Treasurer of each city or municipality shall register the

BMBE's and issue a Certificate of Authority to enable the

BMBE to avail of the benefits under this Act. Any such

applications shall be processed within fifteen (15) working

days

upon

submission

of

complete

documents.

Otherwise, the BMBEs shall be deemed registered. The

Municipal

or

City

Mayor

may

appoint

a

BMBE

Registration Officer who shall be under the Office of the

Treasurer.

Local

government

units

(LGU's)

are

encouraged

to

establish

a

One-Stop-business

Registration Center to handle the efficient registration

and processing of permits/licenses of BMBEs. Likewise,

LGUs shall make a periodic evaluation of the BMBE's

financial status for monitoring and reporting purposes.

© Compiled by RGL

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