Section 10Sec./Art. 10

There is hereby inserted after Sec. 8 as renumbered, new Sec.s 9, 10, 11, 12 and 13 to read as follows:

"Sec. 9. Rights and powers. - Financing companies shall have the following powers, in addition to those granted by this Act and by other laws:

"(a) Engage in quasi-banking and money market operations with the prior approval of the Bangko Sentral ng Pilipinas;

"(b) Engage in trust operations subject to the provisions of the General Banking Act upon prior approval by the Bangko Sentral ng Pilipinas;

"(c) Issue bonds and other capital instruments subject to pertinent rules and regulations of the Bangko Sentral ng Pilipinas;

"(d) Rediscount their paper with government financial institutions subject to relevant laws, rules and regulation;

"(e) Participate in special loan or credit programs sponsored by or made available through government financial institutions; and

"(f) Provide foreign currency loans and leases to enterprises who earn foreign currency by exports or other means, subject to existing laws and rules and regulations promulgated by the Bangko Sentral ng Pilipinas.

"Nothing in this Sec. shall be construed as precluding a financing company from performing such services or exercising such powers as may be granted by the Bangko Sentral ng Pilipinas or the Securities and Exchange Commission or as may be incidental to its activities as a corporation.

"Sec. 10. Applicability of incentives and exemptions to financial leases. - Any incentive, exemption or benefit, including tax credits and investment incentives granted by law or regulation to any purchaser, importer, borrower or other eligible person in connection with any purchase, importation, acquisition, or other transaction shall not be lost, diminished or impaired when the associated financing is through a financial lease rather than through borrowing or other conventional method of financing. Financing companies providing the financial lease in such cases shall be entitled to any incentive, exemption, benefit or privilege available to lenders, importers, purchasers or other eligible person in such transactions under the applicable law or regulation.

"Sec. 11. Parity clause. - When providing medium and long-term credit to small and medium enterprises, financing companies shall enjoy such other rights, powers, benefits and privileges as may be granted by the law or regulation to other non-bank financial institutions when they provide similar credit to such enterprises."

"Sec. 12. Liability of lessors. - Financing companies shall not be liable for loss, damage or injury caused by a motor vehicle, aircraft, vessel, equipment, machinery or other property leased to a third person or entity except when the motor vehicle, aircraft, vessel, equipment or other property is operated by the financing company, its employees or agents at the time of the loss, damage or injury.

"Sec. 13. Registry of financial lease. - The Register of Deeds shall open and maintain a register of financial leases, as an adjunct to the chattel mortgage registry.

"Said lease register shall contain the following particulars:

"(1) Name or description of property, including:

"(a) Brand name or name of manufacturer;

"(b) Name of model, if any;

"(c) Year of model, or manufacture, if available; and

"(d) Serial number, if any.

"(2) Acquisition cost;

"(3) Name of owner or finance company lessor;

"(4) Name of lessee;

"(5) Date of lease agreement or schedule;

"(6) Date of expiry of lease; and

"(7) Date of entry in lease registry."