Article 65Labor and Agrarian Laws and Social Legislation, p. 65

LABOR LAWS AND SOCIAL LEGISLATION SPECIAL LAWS AND IMPLEMENTING RULES AND REGULATIONS

indebtedness,

the

net

earnings

of

the

issuing

or

assuming institution available for its fixed charges, as

defined in this Act, shall have been not less than one and

one-quarter times the total of its fixed charges for such

year: Provided , further , That such investments shall not

exceed thirty percent (30%) of the Investment Reserve

Fund;

(i) In preferred or common shares of stocks listed or about

to be listed in the stock exchange or options or warrants

to such stocks or, subject to prior approval of the Bangko

Sentral

ng

Pilipinas,

such

other

risk

management

instruments

of

any

prime or solvent corporation or

financial institution created or existing under the laws of

the Philippines with proven track record of profitability

over the last three (3) years and payment of dividends at

least once over the same period: Provided , That such

investments shall not exceed thirty percent (30%) of the

Investment Reserve Fund;

(j) In domestic or foreign mutual funds in existence for at

least three (3) years; Provided , That such investments shall

not exceed twenty percent (20%) of the Investment

Reserve Fund: Provided , further , That investments in

foreign mutual funds shall not exceed one percent (1%) of

the Investment Reserve Fund in the first year which shall

be increased by one percent (1%) for each succeeding

year, but in no case shall it exceed seven and one-half

percent (7.5%) of the Investment Reserve Fund;

(k) In foreign currency deposits or triple "A" foreign

currency denominated debts, prime and non-speculative

equities, and other Bangko Sentral ng Pilipinas approved

financial

instruments

or

other

assets

issued

in

accordance with the existing laws of the countries where

such financial instruments are issued: Provided , That

these instruments or assets are listed in bourses of the

respective countries where these instruments or assets

are issued: Provided , further , That the issuing company

has proven track of record of profitability over the last

three (3) years and a record of regular dividend pay-out

over

the

same

period:

Provided ,

finally ,

That

such

investments shall not exceed one percent (1%) of the

Investment Reserve Fund in the first year which shall be

increased by one percent (1%) for each succeeding year,

but in no case shall it exceed seven and one-half percent

(7.5%) of the Investment Reserve Fund;

(l)

In

loans

secured

by

such

collaterals

like

cash,

government

securities

or

guarantees

of

multilateral

institutions: Provided , That such investments shall not

exceed thirty percent (30%) of the Investment Reserve

Fund; and

(m)

In

other

Bangko

Sentral

ng Pilipinas approved

investment instruments with the same intrinsic quality as

those enumerated in paragraphs (a) to (l) hereof, subject

to the policies and guidelines which the Commission may

formulate.

No portion of the Investment Reserve Fund or income

thereof shall accrue to the general fund of the National

Government or to any of its agencies or instrumentalities,

including government-owned or controlled corporations,

except as may be allowed under this Act: Provided , That

no portion of the Investment Reserve Fund shall be

invested for any purpose or in any instrument, institution

or industry over and above the prescribed cumulative

ceilings as follows:

40% in private securities

35% in housing

30% in real estate related investments

10% in short and medium-term member loans

30%

in

government

financial

institutions

and

corporations

30% in infrastructure projects

15% in any particular industry

7.5% in foreign-currency denominated investments

SECTION

26-A.

Fund

Managers.

-

As

part

of

its

investment operations, the SSS may appoint local or, in

the absence thereof, foreign fund managers to manage

the

Investment

Reserve

Fund,

as

it

may

deem

appropriate.

SECTION 26-B. Mortgagor Insurance Account. - (a) As

part of its investment operations, the SSS shall act as

insurer of all or part of its interest on SSS properties

mortgaged to the SSS, or lives of mortgagors whose

properties are mortgaged to the SSS. For this purpose,

the SSS shall establish a separate account to be known as

the

"Mortgagors'

Insurance

Account."

All

amounts

received by the SSS in connection with the aforesaid

insurance operations shall be placed in the Mortgagors'

Insurance

Account.

The

assets

and liabilities of the

Mortgagors' Insurance Account shall at all times be

clearly identifiable and distinguishable from the assets

and

liabilities

in

all

other

accounts

of

the

SSS.

Notwithstanding any provision of law to the contrary, the

assets held in the Mortgagors' Insurance Account shall

not be chargeable with the liabilities arising out of any

other business the SSS may conduct but shall be held

and applied exclusively for the benefit of the owners or

beneficiaries of the insurance contracts issued by the SSS

under this paragraph.

(b) The SSS may insure any of its interest or part thereof

with any private company or reinsurer. The Insurance

Commission or its authorized representatives shall make

an examination into the financial condition and methods

of transacting business of the SSS at least once in two (2)

years, but such examination shall be limited to the

insurance operation of the SSS as authorized under this

paragraph and shall not embrace the other operations of

the SSS; and the report of said examination shall be

submitted to the Commission and a copy thereof shall be

furnished the Office of the President of the Philippines

within

a

reasonable

time

after

the

close

of

the

examination: Provided , That for each examination, the

SSS shall pay to the Insurance Commission an amount

equal to the actual expense of the Insurance Commission

in the conduct of examination, including the salaries of

the examiners and of the actuary of the Insurance

Commission who have been assigned to make such

examination

for

the

actual

time

spent

in

said

examination: Provided , further , That the general law on

insurance and the rules and regulations promulgated

thereunder shall have suppletory application insofar as it

is

not

in

conflict

with

this

Act

and

its

rules

and

regulations.

SECTION 27. Records and Reports . - The SSS President

shall keep and cause to keep records of operations of the

funds of the SSS and of disbursements thereof and all

accounts of payments made out of said funds. During the

month of January of each year, the SSS President shall

prepare for submission to the President of the Philippines

and to Congress of the Philippines a report of operations

of the SSS during the preceding year, including statistical

data on the number of persons covered and benefited,

their occupations and employment status, the duration

and amount of benefits paid, the finances of the SSS at

the close of the said year, and recommendations. He shall

also cause to be published in two (2) newspapers of

general circulation in the Philippines a synopsis of the

annual report, showing in particular the status of the

finances of the SSS and the benefits administered.

SECTION

28.

Penal

Clause .

- (a) Whoever, for the

purpose of causing any payment to be made under this

Act, or under an agreement thereunder, where none is

authorized to be paid, shall make or cause to be made

false statement or representation as to any compensation

paid or received or whoever makes or causes to be made

any false statement of a material fact in any claim for any

benefit payable under this Act, or application for loan

with the SSS, or whoever makes or causes to be made any

false statement, representation, affidavit or document in

connection with such claim or loan, shall suffer the

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