Article 166Supplement v1, p. 166

COMMERCIAL LAWS SUPPLEMENT

ninety

(90)

days

after

its

approval.

The

rules

and

regulations issued pursuant to this section shall take

effect fifteen (15) days after its publication in a newspaper

of general circulation.

Section 16. Separably Clause - If any provision or part

hereof, is held invalid or unconstitutional, the remainder

of the law or the provision not otherwise affected shall

remain valid and subsisting.

Section 17. Repealing Clause – Existing laws, presidential

decrees,

executive

orders,

proclamations

or

administrative regulations that are inconsistent with the

provisions of this Act are hereby amended, modified,

superseded or repealed accordingly.

Section 18. Effectivity – This Act shall take effect fifteen

(15) days after its publication in the Office Gazette or in at

least two (2) newspaper of general circulation.

RA No 8367 | Revised Non-Stock Savings

and Loan Association Act of 1997

October 21, 1997

AN ACT PROVIDING FOR THE REGULATION OF THE

ORGANIZATION AND OPERATION OF NON-STOCK

SAVINGS AND LOAN ASSOCIATIONS

Be

it

enacted

by

the

Senate

and

House

of

Representatives

of

the

Philippines

in

Congress

assembled: :

Section 1. Title . – The short title of this Act shall be the

"Revised Non-Stock Savings and Loan Association Act

of 1997".

Section 2. Declaration of policy . – It is hereby declared

the policy of the State to:

a) encourage industry, frugality and the accumulation of

savings, and judicious utilization of credit among the

members of non-stock savings and loan associations;

b) regulate and supervise the activities of non-stock

savings and loan associations in order to place their

operations on a sound, stable, and efficient basis to the

end that they may be able to better provide for the

establishment of additional savings and credit facilities in

a fair manner to their members and to curtail or prevent

acts

or

practices

of

these

Associations

which

are

prejudicial to their members' interest;

c)

lay

down

the

minimum

requirements

and

the

standards

under

which

non-stock

savings

and loan

Associations may organize and operate; and

d) maximize the protection of members of non-stock

savings and loan associations against misfeasance and

malfeasance of the trustees and officers thereof.

Section 3. Definition of terms . – For the purposes of

implementing this Act, the following definitions shall

apply:

a) Non-stock savings and loan association shall mean a

non-stock,

non-profit

corporation

engaged

in

the

business of accumulating the savings of its members and

using

such accumulations for loans to members to

service the needs of households by providing long term

financing for home building and development and for

personal finance;

b) Association shall refer only to non-stock savings and

loan

associations

organized under this Act and the

Corporation Code of the Philippines;

c) Monetary Board shall mean the Monetary Board of the

Bangko Sentral ng Pilipinas; and

d) Bangko Sentral shall mean the Bangko Sentral ng

Pilipinas.

Section 4. Organization of an Association . – At least five

(5)

but

not

more

than

fifteen

(15)

members

of

a

well-defined group as provided herein may form an

Association

under

this

Act.

An

Association, prior to

transacting any business, shall secure a license from the

Monetary Board and register with the Securities and

Exchange

Commission

(SEC).

The

application

for

a

license, signed by a majority of the incorporators and

verified by one of the trustees, shall include:

a) the proposed articles of incorporation and bylaws

together with names and addresses of the incorporators,

trustees and officers, with a statement of their character,

experience

and

general

fitness

to

engage

in

the

non-stock savings and loan business;

b) an itemized statement of the estimated receipts and

expenditures of the proposed Association for the first

year;

c) a filing fee in such amount as may be determined by

the Monetary Board; and

d) such other information as the Monetary Board may

require.

The SEC shall not register the articles of incorporation

and

bylaws

of

a

proposed

Association

unless

the

application

is

accompanied

by

a

certificate

of

the

Monetary

Board approving the same. The Monetary

Board

may

deny

the

application

to

organize

an

Association under this Act if it finds that the Association is

being organized for any purpose other than to engage in

the business of a legitimate non-stock savings and loan

association or that the Association's financial program is

unsound, or that the proposed members are adequately

served by one or more existing Associations.

The

Association

shall

confine

its

membership

to

a

well-defined group of persons and shall not transact

business with the general public. A "well-defined group"

shall be defined by the Monetary Board, and shall consist

of, but not be limited to, any of the following:

1) employees, officers, and directors of one company,

including member-retirees;

2)

government

employees

belonging

to

the

same

department/branch/office,

including

member-retirees;

and

3) immediate members of the families (up to second

degree of consanguinity or affinity) of those falling under

paragraphs 1 and 2 above.

Associations whose articles of incorporation and bylaws

were approved and registered prior to the effectivity of

this Act and which allow membership coverage broader

than

the

foregoing

definition,

shall

be

allowed

to

continue

as such, unless otherwise required by the

Monetary Board.

The Monetary Board may, as circumstances warrant,

require

Associations

mentioned

in

the

immediately

preceding paragraph to amend their bylaws to comply

with the concept of a "well-defined group."

In no case shall the total amount of entrance fees exceed

one percent (1%) of the amount to be contributed or

otherwise paid in by the particular member: Provided,

That for new members, the said fee shall be based on the

amount of contribution computed in accordance with

the revaluation of the assets of the Association.

No person, association, partnership or corporation shall

do business, or hold itself out as doing business, as an

Association, or shall use the term "Savings and Loan

Association" or any other title or name tending to give

the public the impression that it is engaged in the

operations and activities of an Association, unless so

authorized under this Act.

Section 5. Tax exemption . – An Association shall be

exempt from payment of tax in respect to income it

receives, including interest on its deposits with any bank:

Provided, however , That income derived from any of its

properties, real or personal, or any activity conducted for

profit, regardless of the disposition thereof, is subject to

the corresponding internal revenue taxes imposed under

the National Internal Revenue Code.

Interest

earnings

on

deposits

of

members

with

Associations as well as the shares of its members from

© Compiled by RGL

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