Section 5Sec./Art. 5

Acquisition of Oceangoing Vessels.- Philippine shipping enterprises may likewise acquire oceangoing vessels for Philippine overseas shipping upon approval by the MARINA, subject to the guidelines prescribed in the regulations:Provided,That:

a. The funds utilized in the acquisition of the vessel are financed from sources other than the Philippine banking system;

b. No guaranty of the monetary authority or of any Philippine government or private financial institution is granted or extended for the purpose;

c. The vessel serves as sole collateral for the financing of the vessel and no other asset of the Philippine shipping enterprise is pledged, mortgaged, or used as security in case of default;

d. All foreign exchange requirements for the servicing of the loan, the operation, maintenance and repair of the vessel, the purchase of supplies and related equipment shall be financed solely from earnings derived from the operation of the vessel and no foreign exchange shall be made available by the monetary authority and the Philippine banking system for these purposes;

e. Mortgage documents and/or other financial agreements shall be filed with the monetary authority and such other government agencies in charge of such mortgage formalities; and

f. Any excess foreign exchange earning shall be inwardly remitted and surrendered to the Philippine banking system.