Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 1685

Introduced by: HON. RACHEL MARGUERITE B. DEL MAR

EXPLANATORY NOTE

This Bill further strengthening, Non-stock Savings and Loan Associations,
Amending for the purpose Republic Act No. 8367, Otherwise known as the “Revised Non-
Stock Savings and Loan Associations Act of 1997”, was filed by my predecessor, Deputy
Speaker Raul V. Del Mar in the last 14° Congress. The same was referred to the Committee
on Banks and Financial Intermediaries which approved after thorough deliberations the
Substitute Bill thereof submitted by the Technical Working Group (TWG) created by the
Committee to further refine its provisions. The Substitute Bill was approved on third and
final reading in the plenary and transmitted to the Senate. Unfortunately, it was not
approved by the Senate for lack of material time by reason of the 2010 elections.

The Non-Stock Savings and Loans Association (NSSLA) industry, concededly a
constructive component of the Philippine financial system, has contributed and is
contributing — to the workings of the economy. Its total assets reached P80.4 billion at the
end of December 2008, and this growth, per the 2008 Report of the Bangko Sentral ng
Pilipinas (BSP), was achieved and sustained “inspite of the slowdown in the economy” and
even while the industry “consistently relied on member's equity contribution for funding
source.”

In terms of resources and capacity, the NSSLAs, with its operating network of 144
offices, can do more. As non-bank financial institutions, the NSSLA industry, already
regulated under Republic Act No. 8367, otherwise known as the “Revised Non-Stock
Savings and Loan Association Act of 1997”, wants to bring to the next level its operations as
a financial entity to be in a better position to provide optimum services for the accumulation
of savings and extension of credit facilities in a fair manner to association members.


Towards this end, the attached bill seeks to amend RA 8367 to further strengthen the
structure and operations of NSSLAs to be efficient intermediaries between savers and
borrowers, encouraging Filipinos t save, empowering the members of the household through
their credit facilities and services, particularly providing short-term and long-term financing
for their consumption expenditures and other personal finance requirements.

To put the objectives in perspective, the amendatory bill declares it a policy of the
State to encourage industry, frugality, and the accumulation of savings and judicious
utilization of credit among the members of the NSSLAs, to regulate and put NSSLA
operations on a sound, stable and efficient basis, to prevent practices which are prejudicial
to the interests of association members, and to maximize the protection of members of
NSSLAs against misfeasance and malfeasance of the trustees and officers of NSSLAs.

More importantly, the attached bill seeks to expand NSSLAs membership to a
broader “well-defined group” while maintaining the limitation not to transact with the
general public; improve its deposit-taking power by including dollar-savings deposits from
members with spouses in foreign countries working abroad as Overseas Filipino Workers;
enhance the borrowing, lending and investing function of the Associations, including the
rediscounting of papers with the BSP or other banks and their branches and agencies subject
to BSP guidelines; and tasking the Monetary Board to set up specific regulatory framework
for NSSLAs through the BSP to take into account the unique business nature and
characteristics of NSSLAs.

Indeed, a strengthened NSSLA can be a most effective instrument in providing
opportunities to a broad sector of our communities for the improvement of the people's
standard of living and quality of life.

In this light, approval of the proposed measure is earnestly requested.

(us Pgh

RACHEL |ARGUERITE B. DEL MAR


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 1686

Introduced by: HON. RACHEL MARGUERITE B. DEL MAR

AN ACT
FURTHER STRENGTHENING NON-STOCK SAVINGS AND LOAN
ASSOCIATIONS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO, 8367,
OTHERWISE KNOWN AS THE “REVISED NON-STOCK SAVINGS AND LOAN
ASSOCIATION ACT OF 1997”

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Section 4 of Republic Act No. 8367 is hereby amended to read as
follows:

“SEC. 4. Organization of an Association. - At least five (5) but not
more than fifteen (15) members of a well-defined groups as provided herein
may form an association under this Act. An association, prior to transacting
any business, shall secure a license from the Monetary Board and register
with the Securities and Exchange Commission (SEC). The application for
a license, signed by a majority of the incorporators and verified by one of
the trustees, shall include:

“(a) the proposed articles of incorporation and bylaws together with
names and addresses of the incorporators, trustees and officers, with a
statement of their character, experience and general fitness to engage in the

non-stock savings and loan business;


“B) A NOTARIZED AGREEMENT BETWEEN THE EMPLOYER
AND INCORPORATORS OF THE ASSOCIATION COVERING THE
COLLECTION MECHANISM FOR THE ASSOCIATION;

“C [b)] an itemized statement of the estimated receipts and
expenditures of the proposed association for the first year;

“D) [c)] a filing fee in such amount as may be determined by the
Monetary Board; and

“E [d)] such other information as the Monetary Board may require.

“The SEC shall not register the articles of incorporation and bylaws
of a proposed association unless the application is accompanied by a
certificate of the Monetary Board approving the same. The Monetary
Board may deny the application to organize an association under this Act if
it finds that the association is being organized for any purpose other than to
engage in the business of a legitimate non-stock savings and loan
association or that the association's financial program is unsound, or that
the proposed members are adequately served by one or more existing
associations.

“PRIOR TO ITS OPERATION, AN ASSOCIATION IS REQUIRED
TO SECURE A FAVORABLE ENDORSEMENT FROM THE
NATIONAL ORGANIZATION OF NON-STOCK SAVINGS AND LOAN
ASSOCIATIONS DULY RECOGNIZED AND ACCREDITED BY THE
BANGKO SENTRAL FOR PURPOSED OF ENSURING COMPLIANCE,
SETTING AND MAINTENANCE OF STANDARDS, FORMULATION
OF PROGRRAMS NECESSARY FOR THE DEVELOPMENT OF A
STRONG AND DYNAMIC NON-STOCK SAVINGS AND LOAN
ASSOCIATIONS IN THE PHILIPPINES.

“The association shall confine its membership to a well-defined
group of persons and shall not transact business with the general public. A
“well-defined group” shall be defined by the Monetary Board, and shall
consist of, but shall not be limited to, any of the following:

“1) employees, officers, and directors of [one company] PRIVATE
COMPANIES, including member-retirees BELONGING TO THE SAME


TRADE AND INDUSTRY;

“2) government employees belonging to the same department[/],
[branch] BUREAUJ/], office, AGENCY OR INSTRUMENTALITY OF
THE GOVERNMENT IN ACCORDANCE WITH THE REVISED
ADMINISTRATIVE CODE OF 1987, including member-retirees; and

“3) SPOUSES AND immediate members of the families [(] up to
[second] THIRD degree of consanguinity or affinity [)] of those falling
under paragraphs 1 and 2 above, INCLUDING THEIR LEGALLY
ADOPTED CHILDREN.

“Associations whose articles of incorporation and bylaws were
approved and registered prior to the effectivity of this Act and which allow
membership coverage broader than the foregoing definition, shall be
allowed to continue as such, [unless otherwise required by the Monetary
Board) SUBJECT TO COMPLIANCE WITH SUCH OTHER
REQUIREMENTS AS MAY BE DEEMED PROPER AND NECESSARY
BY THE MONETARY BOARD.

“[The Monetary Board may, as circumstances warrant, require
associations mentioned in the immediately preceding paragraph to amend
their bylaws to comply with the concept of a “well-defined group.”]

“THE ASSOCIATION MAY LEVY ENTRANCE FEES:
PROVIDED, THAT [I] In no case shall the total amount of entrance fees
exceed [one] TWO percent [(1%)] (2%) of the MINIMUM amount OF
CAPITAL CONTRIBUTION [to be contributed or otherwise paid in by the
particular member: Provided, That for new members, the said fee shall be
based on the amount of contribution computed in accordance with the
revaluation of the assets of the association].

“No person, association, partnership or corporation shall do
business, or hold itself out as doing business, as an association, or shall use
the term “Savings and Loan Association” or any other title or name tending
to give the public the impression that it is engaged in the operations and
activities of an association, unless so authorized under this Act.”

SEC. 2. Section 7 of Republic Act No. 8367 is hereby amended to read as follows:


regulations prescribed by the Monetary Board]: Provided, [further,]
FINALLY, That [the treasurer, cashier, or paymaster of the office]
NOTWITHSTANDING THE PROVISION OF ANY EXISTING LAW,
RULE AND REGULATION TO THE CONTRARY, THE COMPANY,
DEPARTMENT, BUREAU, OFFICE OR AGENCY employing a member
is required [, notwithstanding the provision of any existing law, rule and
regulation to the contrary,] to make deductions from A MEMBER'S [his]
salary, wage, income, OTHER COMPENSATION, [or] retirement pension,
OTHER RETIREMENT AND SEPARATION BENEFITS AND OTHER
RECEIVABLES pursuant to the term of [his] THE MEMBER'S loan, |, and
all other deductions authorized by the member,] OR HIS OR HER
AUTHORIZATION AND to remit such deductions to the association
[concerned, and to collect such reasonable fee for his services as may be
authorized by rules promulgated by the Monetary Board].

“{In addition to the powers granted it by this Act and existing laws,
any association may:]

“{a) charge reasonable interest and collect such necessary fees and
charges incidental to the grant of loans];

“C) [b)] invest its funds in any TRADABLE INVESTMENT-
GRADE [sound non-speculative enterprise as well as in] bonds, security,
and other obligations issued by the government of the Philippines, or any of
its political subdivisions, instrumentalities, or corporations [including
government-owned or-controlled corporations] AND OTHER
INVESTMENT OUTLETS subject to [the rules and regulations of the
Monetary Board] PRIOR BANGKO SENTRAL APPROVAL;

“D [c)] allow members to participate in the profits of the association
ON THE BASIS OF THEIR RESPECTIVE CAPITAL CONTRIBUTIONS
AND STATUS OF THEIR LOANS ON THE DATE DISTRIBUTION OF
NET INCOME IS APPROVED BY ITS BOARD OF
TRUSTEES/DIRECTORS;

“E [d)] borrow money or incur such obligations not exceeding

twenty percent (20%) of the total assets of the association, from any


lending institution. The Monetary Board, may, in meritorious cases, raise
the ceiling on the borrowing capacity of an association to an amount not
exceeding thirty percent (30%) of its total assets: Provided, That any such
association organized by employees of an entity or corporation may borrow
funds from said entity or corporation but not vice-versa: Provided, further,
That the number of the association's creditors shall not exceed nineteen (19)

at any one time;

“F [e)] maintain deposits with banks: Provided, That the amount of
such deposits shall be subject to the loan limit to a single borrower as
prescribed herein or by other special laws or regulations;

“G [6] [require the employer-entity or corporation to provide it with
adequate office space within which it can conduct its business] LEND OR
INVEST IN ANOTHER ASSOCIATION WITH THE MAIN OBJECTIVE
OF EXTENDING FINANCIAL ASSISTANCE TO AN ASSOCIATION
EXPERIENCING LIQUIDITY PROBLEM; [and]

“HT [g)] engage in death benefit program meant exclusively for the
mutual benefit of its members[.];

“T) REDISCOUNT PAPERS WITH THE BANGKO SENTRAL OR
OTHER BANKS AND THEIR BRANCHES AND AGENCIES. THE
BANGKO SENTAL SHALL SPECIFY THE NATURE OF THE PAPER
DEEMED ACCEPTABLE FOR REDISCOUNT RATE TO BE CHARGED
BY ANY OF THESE INSTITUTIONS; AND

“J) PERFORM SUCH ACTS AND FUNCTIONS AS MAY BE
AUTHORIZED AND/OR DELEGATED BY THE BANGKO SENTRAL.”

SEC. 3. Section 9 of Republic Act No. 8367 is hereby amended to read as follows:

“SEC. 9. Service Units. - An association [shall] IS HEREBY
AUTHORIZED TO open, maintain and operate service units as may be
necessary in order to EFFICIENTY AND EFFECTIVELY deliver services
to its members subject to RULES AND REGULATIONS PRESCRIBED
BY [approval of] the Monetary Board{.]: PROVIDED, HOWEVER, THAT
SERVICE UNITS CANNOT ACCEPT/RECEIVE DEPOSITS OR
CONTRIBUTIONS.”


SEC. 4. A new section, Section 9-A, is hereby added to Republic Act No. 8367 as to
read as follows:

SEC. 9-A. PROVISION OF OFFICE SPACE. - THE
EMPLOYER-ENTITY OR CORPORATION SHALL PROVIDE NON-
STOCK SAVINGS AND LOAN ASSOCIATIONS WITH ADEQUATE
OFFICE SPACE IN ITS PREMISES WITHIN WHICH THEY CAN
CONDUCT BUSINESS.”

SEC. 5. Section 10 of Republic Act No. 8367 is hereby amended to read as follows:

SEC. 10. Agents and Salesmen. - No person OR ENTITY shall act
as a{n] SALES agent or [sales] representative of an association [or operate
an agency] without [obtaining a license from] REGISTERING WITH the
[Monetary Board] BANGKO SENTRAL. No license OR
REGISTRATION is required for a collector of an association [but no
person shall hold himself out or act as collector unless he is authorized as a
collector in writing by such association].”

SEC. 6. Section 1 lof Republic Act No. 8367 is hereby amended to read as follows:
SEC. 11. Merger or Consolidation of Associations. - To
achieve simplicity, economy and efficiency, MERGER OR
CONSOLIDATION OF SEVERAL OR different associations of one
company or department or office [may merge or consolidate] SHALL BE
ALLOWED [upon] SUBJECT TO THE approval of the Monetary Board.”
SEC. 7. Section 12 of Republic Act No. 8367 is hereby amended to read as follows:

SEC. 12. Trustees AND OFFICERS. - Only members are eligible
as trustees of an association: Provided, That in the case of a merger or
consolidation of associations duly approved by the Monetary Board, the
limitation on the maximum number of trustees in a corporation, as provided
for in the Corporation Code, shall not be applied for a maximum period of
three (3) years so that membership in the new board may include up to the
total number of trustees provided for in the respective articles of
incorporation of the merging or consolidating associations.

“AFTER DUE NOTICE TO THE BOARD OF TRUSTEES OF
THE ASSOCIATION. THE MONETARY BOARD MAY DISQUALIFY,


“SEC. 7. Powers of Associations. - The association [shall] MAY:

A) accept deposits from [and grant loans] only [to] its members,
INCLUDING DOLLAR SAVINGS DEPOSITS: PROVIDED, THAT, IN
THE CASE OF DOLLAR DEPOSITS, THE SAME SHALL BE SUBJECT
TO THE POOR PRIOR APPROVAL OF THE BANGKO SENTRAL,
subject to such rules and regulations as the Monetary Board may
promulgate to ensure sound, stable and efficient operation: Provided, That
no deposits shall be sourced or deducted from the loans granted to a
member without his or her written consent{.];

“B) EXTEND LOANS TO ITS MEMBERS. IN CASE OF AN
UNCOLLATERALIZED LOAN, THE MAXIMUM LOAN AMOUNT OF
A MEMBER WILL BE BASED ON HIS PAYING CAPACITY:
PROVIDED, THAT HIS NET TAKE HOME PAY SHALL BE NO
LOWER THAN WHAT IS PROVIDED BY THE GENERAL
APPROPRIATIONS ACT FOR GOVERNMENT EMPLOYEES OR
THAT SET BY COMPANY INTERNAL POLICIES, IN CASE OF
PRIVATE EMPLOYEES. IN CASE OF COLLATERALIZED LOANS,
[T] The loan [s] AMOUNT shall not exceed the members’ deposits and
contributions in the association, plus twelve (12) months of his OR HER
regular salary as the association may allow AND/or seventy percent (70%)
of the [fair market] APPRAISED value of any property acceptable as
collateral on first mortgage that [he] THE MEMBER may offer as security:
PROVIDED, FURTHER, THAT THE CONDITION ON NET TAKE
HOME PAY UNDER UNCOLLATERALIZED LOAN IS COMPLIED
WITH. THE ASSOCIATION PRESCRIBE THE INTEREST RATE,
FEES, CHARGES, REPAYMENT PERIOD AND OTHER TERMS AND
CONDITIONS OF THE LOAN BASED ON SOUND RISK
MANAGEMENT |: Provided, That no loan shall have the maturity date of
more than five (5) years, except loans on the security of unencumbered real
estate for the purpose of home building and home development, which may
be granted with maturities not exceeding twenty-five (25) years, and

medium and long-term loans to finance agricultural projects, subject to


SUSPEND OR REMOVE ANY TRUSTEE OR OFFICER WHO
COMMITS OR OMITS AN ACT WHICH RENDER HIM OR HER
UNFIT FOR THE POSITION.

“IN DETERMINING WHETHER AN INDIVIDUAL IS FIT AND
PROPER TO HOLD THE POSITION OF A TRUSTEE OR OFFICER OF
AN ASSOCIAITON, REGARD SHALL BE GIVEN TO HIS OR HER
INTEGRITY, EXPERIENCE, EDUCAION, TRAINING, AND
COMPETENCE.”

SEC. 8. Section 14 of Republic Act No. 8367 is hereby amended to read as follows:

“SEC. 14. Compensation of Trustees, Officers and Employees. -
No trustee, officer, or employee of an association shall receive from such
association, and no association shall pay to any trustee, officer, or employee
of such association, any commission, emolument, gratuity or reward based
on the volume or number of loans made, or based on the interest or fees
collected thereon. Nothing in this section SHALL BE CONSTRUED AS
TO prohibit[s] or OTHERWISE [limits] RESTRICT any of the following:

“a) receipt or payment of salaries of trustees, officers and
employees;

“B) RECEIPT OR PROVISION OF FRINGE BENEFITS TO
OFFICERS AND EMPLOYEES;

“C) [b)] receipt of payment of commissions to agents whether or not
based on the volume or number of loans or on the interest or fees collected
thereon; [and] OR

“D) [c)] receipt or payment of bonuses to trustees, officers or
employees if such bonuses are based on the performance and not on the
volume or number of loans made or on the interest or fees collected
thereon.

“[All increase in the compensation, any form, of all trustees and
trustee-officers in excess of ten percent (10%) thereof per annum shall
require the approval of the Bangko Sentral.]

“IN ORDER TO PROTECT THE FUNDS OF MEMBERS AND
CREDITORS, THE TERMS AND CONDITIONS OF THE


COMPENSATION OF TRUSTEES, OFFICERS AND EMPLOYEES
MAY BE SUBJECT TO RULES AND REGULATIONS OF THE
BANGKO SENTRAL.”

SEC. 9. Section 16 of Republic Act No. 8367 is hereby amended to read as follows:

“SEC. 16. Execution of Loan Agreement. - For each loan made by
an association, [a written note or other obligation expressing a rate of
interest must be executed by the borrower] PAYMENT OF A SPECIFIC
RATE OF INTEREST BY THE BORROWER SHALL BE EXPRESSLY
STIPULATED IN THE LOAN AGREEMENT OR ANY DOCUMENT
DEEMED AN INTEGRAL PART THEREOF.”

SEC. 10. Section 18 of Republic Act No. 8367 is hereby amended to read as follows:
“SEC. 18. Limitations on Investment, - a) No association at
any one time shall invest in bonds and securities in a total amount in excess
of [ten percent (10%)] TWENTY-FIVE PERCENT (25%) of the total assets
of such association without prior written approval of the Bangko Sentral.

“p) No association at any one time shall invest in real property in a
total amount in excess of five percent (5%) of the total assets of such
association.

“c) No association at any one time shall invest in furniture, fixture,
furnishings and equipment and leasehold improvements for its offices, in an
amount more than ten percent (10%) of its total capital contribution.”

SEC. 11. Section 19 of Republic Act No. 8367 is hereby amended to read as follows:

“SEC. 19. Reserves. - Every association shall create a withdrawable
share reserve which shall consist of [two percent (2%)] ONE PERCENT
(1%) of the total capital contributions of the members [which the Monetary
Board may increase to a maximum of three percent (3%), as the situation
warrants]. THE BANGKO SENTRAL SHALL IN MERITORIOUS
CASES AND WHEN THE INTERESTS OF THE ASSOCIAITON AND
ITS MEMBERS SO DICTATE, ALLOW THE STAGGERED BOOKING
OF ITS RESERVES REQUIREMENT TO INCLUDE ITS
WITHDRAWABLE SHARE RESERVE, SURPLUS RESERVE FOR
LEDGER DISCREPANCIES AS WELL AS ITS RESERVES FOR


OFFICE PREMISES, FURNITURE, FIXTURES AND EQUIPMENT.
“[No association shall distribute to its members any portion of its net
income if its withdrawable share reserve is less than the minimum
requirement, or if by such payment or distribution, such reserve will be
reduced to an amount below the minimum requirement provided herein.]
SEC. 12. Section 20 of Republic Act No. 8367 is hereby repealed.
SEC. 13. Section 21 of Republic Act No. 8367 is hereby amended to read as follows:
“SEC. 21. Annual Reports by the Association. - Every association
shall, within one hundred twenty (120) calendar days after the close of its
fiscal year furnish the Monetary Board and post in any of the association's
bulletin board or in any other conspicuous place a copy of its financial
statement, AS REVIEWED BY A BANGKO SENTRAL-ACCEPTABLE
INDEPENDENT AUDITOR, showing, in such form and detail as the
Monetary Board shall require, the amount and character of the assets and
liabilities of the association at the end of the preceding fiscal year. The
Monetary Board may, in addition to the foregoing, require the disclosure of
such other information as it shall deem necessary for the protection of the
members of the association.”
SEC. 14. Section 22 of Republic Act No. 8367 is hereby amended to read as follows:
“SEC. 22. Regulatory Powers Over Associations, -
Notwithstanding the provisions of Section 130 of Republic Act No. 7653,
the power to regulate the operations of any association by the Monetary
Board shall continue: PROVIDED, THAT THE MONETARY BOARD
SHALL TAKE INTO ACCOUNT THE UNIQUE BUSINESS NATURE
AND THE INTRINSIC MANDATE AND MISSIONS OF
ASSOCIATIONS IN THE ADOPTION OF A REGULATORY
FRAMEWORK. SUCH PERTINENT FEATURES OF THE
REGULATORY FRAMEWORK PRESENTLY APPLIED TO REGULAR
BANKS AND QUASI-BANKS MAY BE ADOPTED, SUCH POWERS
SHALL [and] consist of the following:
“a) [in seeing] ENSURE to it that the capital, financing, direction

and administration, as well as the integrity, responsibility, and ability of


organizers, administrators, trustees, and officers of all associations
organized and operated under this Act, shall reasonably assure the safety of
the interests which its members entrust to them;

“p) [in regulating] REGULATE the operation and activities of
associations, which include, among others: 1) in placing limits to the
maximum credit allowed any individual borrower; 2) in determining the
loan repayment period and loan procedures; 3) in imposing a uniform
accounting system IN COMPLIANCE WITH THE PHILIPPINE
FINANCIAL REPORTING STANDARDS and manner of keeping the
accounts and records of associations; 4) in instituting periodic surveys of
loan and lending procedures, audits, test check of each and other
transactions of associations; and 5) whenever necessary, in conducting
training courses for personnel of associations;

“c) fin requiring all accountable officers and employees of every
association to post bonds for the faithful performance of their duties in
reasonable sums and with such sureties as the Monetary Board may
require] PRESCRIBE ADDITIONAL LIQUIDITY REQUIREMENTS;

“d) [in fixing, by rules or by orders, in specific cases, after notice
and hearing, the limits of loanable funds, amounts for investment and
reserves for withdrawals and other contingencies] ENFORCE PROMPT
CORRECTIVE ACTION ON ASSOCIATIONS SHOWING
CONDITIONS INDICATING HIGHER THAN NORMAL RISK OF
FAILURE;

“e) [in issuing rules and regulations for the proper implementation of
this Act, effective administration of the associations, and to] render
advisory assistance to all interested parties in order to carry out the intents
and purposes of this Act; [and]

“f) [in conducting] CONDUCT such investigations, takE[ing] such
remedial measures and [exercising] EXERCISE all powers under Republic
Act No. 7653, insofar as they are applicable in the enforcement of this Act.

“G) IMPOSE UPON ANY ASSOCIATION. ITS TRUSTEES,
OFFICERS, OR EMPLOYEES, AFTER DUE NOTICE AND HEARING,


THE FOLLOWING ADMINISTRATIVE SANCTIONS, WHENEVER
APPLICABLE:

“1) FINES IN AMOUNTS AS MAY BE DETERMINED TO BE
APPROPRIATE BASED ON THE NATURE AND GRAVITY OF THE.
OFFENSE;

“2) RESTRICTION OR SUSPENSION OF LICENSE; AND

“3) OTHER ADMINISTRATIVE SANCTIONS AVAILABLE TO.
THE BANGKO SENTRAL UNDER ITS CHARTER;

“H) PROVIDE A CREDIT FACILITY TO SYSTEMICALLY
CRITICAL NON-STOCK SAVINGS AND LOAN ASSOCIATIONS
EXPERIENCING LIQUIDITY PROBLEMS; AND

“T) PLACE UNDER RECEIVERSHIP, AFTER DUE NOTICE AND
HEARING, AN ERRIG/DISTRESSED ASSOCIATION TO PROTECT
THE INTERESTS OF ITS MEMBERS PURSUANT TO THE EXISTING
RULES AND REGULATIONS PROMULGATED BY THE MONETARY
BOARD.

“THE RECEIVER SHALL FORTHWITH GATHER AND TAKE
CHARGE OF ALL ITS ASSETS AND LIABILITIES AND ADMINISTER
THE SAME FOR THE BENEFIT OF ITS MEMBERS AS PROVIDED
UNDER THE REVISED RULES OF COURT. THE PROVISIONS OF
SECTION 30 OF REPUBLIC ACT NO. 7653 ON THE POWERS,
FUNCTIONS, DUTIES AND OTHER TERMS OF REFERNCE ON
RECEIVERS SHALL APPLY.

“The Bangko Sentral shall have the power to enforce the laws,
orders, instructions, rules and regulations promulgated by the Monetary
Board applicable to associations; to require associations, their trustees,
officers and agents to conduct and manage the affairs of the association in a
lawful and orderly manner. After due notice and hearing, the Monetary
Board may revoke or suspend the license of any association, for such
period as it determines necessary, particularly when the solvency of an
association is imperiled by losses or irregularities, and/or when an

association willfully violates any provisions of this Act or any rule or


regulations promulgated hereunder.

“The director and examiners of the department of the Bangko Sentral
charged with the regulation of associations are hereby authorized to
administer oaths to any trustee, officer or employee of any association or to
any voluntary witness and to compel the presentation of all books,
documents, papers or records necessary in his judgment to ascertain the
facts relative to the true condition of any association or to any loan.”

SEC. 15. Section 24 of Republic Act No. 8367 is hereby amended to read as follows

“SEC. 24. Annual SUPERVISION FEES. - Consistent with the
provisions of Section 28 of Republic Act No. 7653, any association
organized under this Act may, pursuant to regulations promulgated for the
purpose by the Monetary Board, be required to contribute to the Bangko
Sentral an annual SUPERVISION fee to be determined by the Monetary
Board.”

SEC. 16. Separability Clause. - lf any provision of this Act is held invalid, the other
provisions of this Act shall not be affected thereby and shall continue in operation.

SEC. 17. Repealing Clause. - Any law or parts of law inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.

SEC. 18. Effectivity. - This Act shall take effect fifteen (15) days following the
completion of its publication in the Official Gazette or in two (2) national newspapers of
general circulation.

Approved,