Section 31Sec./Art. 31

A new section entitled Section 18 of the same Act is hereby inserted between Sections 17 and 19 which shall read as follows:

DIVIDEND DECLARATION

SEC. 18. Consistent with the policy of the State to generate, preserve, maintain faith and confidence in the countrys banking system, the Corporation shall build up and maintain the DIF at the target level set by the PDIC Board of Directors. Such target level shall be subject to periodic review and may be adjusted as necessary.

The Corporation is exempt from Republic Act No. 7656; instead, the Corporation shall remit dividends to the national government only if the target DIF level for the applicable year has been reached. For purposes of computing the amount of dividends to be declared and remitted to the national government, all assessment collections shall not be considered as income. The dividend rate shall be at least fifty percent (50%) of the income from other sources only.