Section 6Sec./Art. 6

Capitalization of National Home Mortgage Finance Corporation (NHMFC).- The authorized capital stock of the NHMFC is hereby increased from Five hundred million pesos (₱500,000,000) to Five billion five hundred million pesos (₱5,500,000,000) to expand its leveraging capability based on the volume of mortgage loans being serviced, to improve its profitability by reducing the average cost of its funds made available for home-lending programs, and to enable the NHMFC to maintain the debt-to-equity ratio of 10:1. Thus, Section 3 of Presidential Decree No. 1267 is hereby amended to read as follows:

"Section 3.Capitalization.- The Corporation shall have an authorized capital stock of Five billion five hundred million pesos (₱5,500,000,000) divided into five million five hundred thousand (5,500,000) shares of common stocks with a par value of One thousand pesos (₱1,000) per share, to be fully subscribed and paid by the Government of the Republic of the Philippines."

"There shall be a continuing annual appropriation to be remitted to the Corporation starting from calendar year 1995, and subsequently thereafter until the entire authorized capital stock shall have been fully paid:Provided, however,That the National Government loan relent to the corporation in the amount of US $76.73 Million under the World Bank Financed Housing Sector Project is hereby converted to equity."