Article 174Supplement v1, p. 174

COMMERCIAL LAWS SUPPLEMENT

SECTION

28.

Parity

Clause

Under

the

Same

Circumstances .

—

The

incentives

granted

shall

be

enjoyed by financial institutions giving the same services

for countryside lending and development under such

terms as may be equitable and as may be defined by the

Monetary Board.

SECTION 29. Separability Clause . — If any provision of this

Act

or

the

application

thereof

to

any

person

or

circumstances is held invalid, the other provisions of this

Act and the application of such provisions to other

persons and circumstances, shall not be affected thereby.

SECTION 30. Repealing Clause . — Republic Act No. 4093 ,

Republic Act No. 3779 to the extent that it applies to thrift

banks, and Chapter 5 of Republic Act No. 337 are hereby

repealed. Any law or parts of any law inconsistent with

the provisions of this Act are hereby repealed. In all

matters affecting the price stability of the peso, the

provisions of Republic Act No. 7653 shall prevail.

SECTION 31. Applicability of Other Laws . — The provisions

of Republic Act No. 7653 and Republic Act No. 337 , as

amended, insofar as they are applicable and not in

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

banks organized hereunder.

SECTION 32. Effectivity . — This Act shall take effect fifteen

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

Official Gazette or in two (2) national newspapers of

general circulation.

Approved: February 23, 1995

Published in Malaya and the Philippine Times Journal on

March 2, 1995.

RA No 10846 | An Act Enhancing the

Resolution and Liquidation Framework

for Banks

amending for the purpose Republic Act No. 3591, as

amended, and other related laws

AN ACT ENHANCING THE RESOLUTION AND

LIQUIDATION FRAMEWORK FOR BANKS, AMENDING

FOR THE PURPOSE REPUBLIC ACT NO. 3591, AS

AMENDED, AND OTHER RELATED LAWS

Be

it

enacted

by

the

Senate

and

House

of

Representatives

of

the

Philippines

in

Congress

assembled:

THE CREATION OF THE PHILIPPINE DEPOSIT

INSURANCE CORPORATION

SECTION 1. — There is hereby created a Philippine

Deposit Insurance Corporation hereinafter referred to as

the ‘Corporation’ which shall insure as herein provided,

the deposits of all banks which are entitled to the

benefits of insurance under this Act, and which shall have

the powers hereinafter granted.

The Corporation shall, as a basic policy, promote and

safeguard

the

interests

of the depositing public by

providing insurance coverage on all insured deposits and

helping maintain a sound and stable banking system.

STATE POLICY

SECTION 2. — It is hereby declared to be the policy of the

State to strengthen the mandatory deposit insurance

coverage system to generate, preserve, maintain faith

and confidence in the country’s banking system, and

protect it from illegal schemes and machinations.

Towards this end, the government must extend all means

and

mechanisms

necessary

for

the

Corporation

to

effectively

fulfill

its

vital

task

of

promoting

and

safeguarding the interests of the depositing public by

way of providing insurance coverage on bank deposits

and in helping develop a sound and stable banking

system.

In view of the crucial role and the nature of its functions

and

responsibilities,

the

Corporation,

while

being

a

government instrumentality with corporate powers, shall

enjoy fiscal and administrative autonomy.

BOARD OF DIRECTORS: COMPOSITION AND

AUTHORITY

SECTION

3.

(a)

The

powers

and

functions

of

the

Corporation shall be vested in and exercised by a Board of

Directors which shall be composed of seven (7) members

as follows:

(1) The Secretary of Finance who shall be the ex officio

Chairman of the Board without compensation;

(2) The Governor of the Bangko Sentral ng Pilipinas who

shall

be

ex

officio

member

of

the

Board

without

compensation;

(3)

The

President

of

the Corporation, who shall be

appointed by the President of the Philippines from a

shortlist prepared by the Governance Commission for

Government-Owned

or

-Controlled

Corporations

pursuant to Republic Act No. 10149 to serve on a full-time

basis for a term of six (6) years. The President of the

Corporation shall also serve as Vice Chairman of the

Board;

(4) Four (4) members from the private sector to be

appointed by the President of the Philippines from a

shortlist prepared by the Governance Commission for

Government-Owned

or

-Controlled

Corporations

pursuant

to

Republic

Act No. 10149. The appointive

directors shall serve for a term of six (6) years unless

sooner removed for cause and shall be subject to only

one

(1)

reappointment: Provided, That of those first

appointed, the first two (2) appointees shall serve for a

period of three (3) years: Provided, however, That the

appointive director shall continue to hold office until the

successor is appointed. An appointive director may be

nominated

by

the

Governance

Commission

for

Government-Owned

or

-Controlled

Corporations

for

reappointment by the President only if one obtains a

performance score of above average or its equivalent or

higher in the immediately preceding year of tenure as

appointive director based on the performance criteria for

appointive directors of the Corporation.

Appointment

to

any

vacancy

shall

be

only for the

unexpired term of the predecessor pursuant to Republic

Act No. 10149.

No person shall be appointed as member of the Board

unless

he

or

she

be

of

good

moral

character,

of

unquestionable integrity and responsibility, of known

probity

and

patriotism,

and

who

is

of

recognized

competence in economics, banking and finance, law,

management administration or insurance, and shall be at

least thirty-five (35) years of age. For the duration of their

tenure or term of office and for a period of one (1) year

thereafter, the appointive members of the Board shall be

disqualified

from

holding

any

office,

position

or

employment in any insured bank.

The Secretary of Finance and the Governor of the Bangko

Sentral ng Pilipinas may each designate an alternate, who

shall be an official with a rank not lower than assistant

secretary or its equivalent with written authority from the

Secretary of Finance or the Governor of the Bangko

Sentral ng Pilipinas to attend such meetings and to vote

on behalf of their respective principals. Whenever the

Chairman of the Board is unable to attend a meeting of

the Board, or in the event of a vacancy in the office of the

Secretary of Finance, and in the absence of the Vice

Chairman, the members of the Board shall designate

from among themselves who shall act as Chairman.

© Compiled by RGL

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