EIGHTEENTH CONGRESS OF THE} 
REPUBLIC OF THE PHILIPPINES } 
Second Regular Session 
}
SENATE
S. B. No. 2003
of Il;t ^rf.Ttar^'
21 JAN 20 P4 .*00
Introduced by SENATOR VICENTE C. SOTTO III
AN ACT
PROVIDING FOR GOVERNMENT FINANCIAL INSTITUTIONS UNIFIED 
INITIATIVES TO DISTRESSED ENTERPRISES FOR ECONOMIC
RECOVERY (GUIDE)
EXPLANATORY NOTE
It is quite evident by now that the COVID-19 pandemic is not only a 
global health emergency but also social and economic. It has affected all 
sectors of our society; and the impact that the pandemic has created is 
undeniably unprecedented. According to the World Bank, adverse effects on 
family incomes, jobs, education of children, food security, and businesses 
have been felt and seen in the country during this period.
Some of the key findings of the World Bank survey1 conducted in 
August 2020 on the "Impacts of COVID-19 on Households in the Philippine^ 
worth mentioning are as follows:
1) As of August 2020, 24% of household heads employed in February 
were no longer working
2) Significant income losses were also reported—among household 
heads still working, about 57% have experienced reduced or no 
income
1 http://pubdocs.worldbank.org/en/546181605520156388/Results-from-the-Philippines-COVID-19- 
Households-Survey-conducted-in-August-2020.pdf


3) About three in four households worried about food security (i.e., not 
having enough food) and about one in three cited experiencing 
hunger
4) Learning was also significantly disrupted during the pandemic.
Consequently, these have translated to economic losses for the country. 
According to the National Economic and Development Authority (NEDA) Chief, 
Secretary Karl Kendrick Chua, “When we restricted the economy in the second 
quarter, GDP fell by 16.9 percent and the unemployment rate increased to 17.7 
percent...The combined effects of these were concretely felt by the people.”
While Bayanihan I and II have played a crucial role in the government’s 
efforts to sa\|e lives and livelihoods, the impending passage of the economic 
recovery bills - Corporate Recovery and Tax Incentives for Enterprises 
(CREATE) Act and the Financial Institutions Strategic Transfer (FIST) Act - 
which sought to aid the business sector and the financial institutions, 
respectively, are still not enough to bring back on track our economy and 
defeat COVID-19 simultaneously. And this proposed measure will complete 
the country’s recovery plan.
Based on the data from the Philippine Statistics Authority on 06 August 
2020, the main contributors to the decline in our economy are the 
transportation and storage, construction, and manufacturing sectors. Thus, 
these particular sectors, among others, are the ones being targeted by the 
government to receive the needed assistance for them to be rehabilitated 
through this proposed Government Financial Institutions Unified Initiatives 
to Distressed Enterprises for Economic Recovery (GUIDE) Act.
This bill aims to assist in the rehabilitation of strategically important 
companies (SICs) experiencing temporary solvency issues due to the 
pandemic. According to the government’s economic cluster - the Department 
of Finance, Department of Budget and Management, and NEDA - SICs are 
vital to the economy, as they contribute a significant share of gross domestic 
product. By helping save SICs, we help thousands of jobs that depend on 
these SICs, including the jobs associated with the SIC’s forward and backward


linkages across multiple industries. This bill will likewise help lower the 
overall coast of borrowing for micro, small, and medium enterprises (MSMEs).
Unfortunately, many MSMEs and SICs are struggling financially due to 
the necessary but restrictive measures implemented globally to contain the 
spread of COVID-19. As a result, the Philippine economy registered 3.6 million 
job cuts and PI.4 trillion in foregone output as of the first semester of 2020, 
based on the data provided by the government’s economic cluster.
Furthermore, the group said that the timely and effective assistance to 
MSMEs and SICs is crucial, as a prolonged period of struggling operations 
could result in a vicious cycle characterized by deteriorating credit profiles, 
reduced investments, higher job cuts, financial marker disruptions, slow 
economic recovery, and eventually deeper economic losses. This proposed 
measure will break this cycle and puts the economy on track for smooth 
recovery.
In view of the urgent need to provide relief to MSMEs and to help SICs 
protect Filipino jobs, the immediate passage of this measure is earnestly 
sought.
IBNTB C. ^OTTO III


EIGHTEENTH CONGRESS OF THE } 
REPUBLIC OF THE PHILIPPINES } 
Second Regular Session 
}
SEN AJT„E_ 
S.B. No.
Jennie
'V’.-.. iGffitf u{ :(jt S>rfrfff!rj»
21 JAN 20 P4 -00
p;n/
INTRODUCED BY SENATOR VICENTE C. SOTTO IH
AN ACT PROVIDING FOR GOVERNMENT FINANCIAL INSTITUTIONS 
UNIFIED INITIATIVES TO DISTRESSED ENTERPRISES FOR ECONOMIC
RECOVERY (GUIDE)
Be it enacted by the Senate and House of Representatives of the 
Philippines, in Congress assembled:
1 
Section 1. Title. - This Act shall be known as the “Government Financial
2 
Institutions (GFIs) Unified Initiatives to Distressed Enterprises for Economic
3 
Recovery (GUIDE) Act.”
4 
Sec. 2. Declaration of Policy. - The substantial disruption of the
5 
economy due to the community quarantine measures restricted the operation
6 
of numerous businesses.
7 
The State recognizes the role of these businesses composed of micro,
8 
small and medium enterprises (MSMEs) and strategically important
9 
companies in providing employment to the Filipino people and in supporting
10 
the Philippine economy. Thus, it is essential that these enterprises are given
11 
necessaiy access to credit and financial assistance. It is hereby declared the
12 
policy of the State to protect employment and assist distressed enterprises in
13 
order to reinvigorate the economy.
14 
Sec. 3. Definition of Terms. - As used in this Act:
15 
(a) Agribusiness value chain refers to a set of actors/players, such as
16 
farmers, fisherfolk, traders, suppliers, processors, and aggregators,
17 
who make up the linked sequence of value-adding activities
18 
undergone by an agricultural product when converted from raw
19 
material to the final form it is presented to the consumers;
20 
(b) Micro, Small and Medium Enterprise (MSME) refers to any business
21 
activity or enterprise engaged in industry, agribusiness and/or
22 
services, whether single proprietorship, cooperative, partnership or


1
2
3
4
5
6
7
8 
9
10
11
12
corporation whose total assets, inclusive of those arising from loans 
but exclusive of the land on which the particular business entity’s 
office, plant and equipment are situated, must have value falling 
under the following categories:
micro
small
medium
not more than PhP3,000,000 
PhP3,000,001 - PhP15,000,000 
PhP15,000,001 - PhP100,000,000
(c) Senior executive officers refer to top management officials exercising 
responsible and critical roles, as may be described further in the 
rules and regulations to be issued to implement this Act.
(d) Strategically Important Companies or SICs shall have the meaning 
ascribed in Section 9(b) of this Act.
13 
CHAPTER 1
14 
Development Bank of the Philippines
15 
Sec. 4. Loan Assistance Program of the Development Bank of the
16 
Philippines (DBP). — The DBP shall expand its loan program for qualified
17 
MSMEs affected by the COVID-19 pandemic under this Act and MSMEs
18 
covered under Republic Act No. 11494 or “the Bayanihan to Recover as One
19 
Act”: Provided, That such loans shall be granted in accordance with the rules
20 
and regulations to be issued to implement this Act and the following
21 
guidelines:
22 
(a) Eligible MSMEs under this Act should be engaged in
23 
infrastructure, service industry, and/or manufacturing
24 
business; and
25 
(b) The loans granted hereunder should comply with the
26 
applicable prudential standards and regulations of the BSP.
27 
The DBP shall likewise extend loans to local government units (LGUs)
28 
subject to existing rules and regulations.
29 
Sec. 5. DBP Rediscounting and other Programs. — Subject to applicable
30 
prudential standards and regulations of the Bangko Sentral ng Pilipinas (BSP),
31 
the DBP may rediscount loans and other credit accommodations to
32 
enterprises enumerated in Section 4(a) of this Act, granted by BSP- supervised
33 
financial institutions (BSFIs), the Small Business Corporation (SBC), and
34 
those granted pursuant to credit programs of the Department of Agriculture-
35 
Agricultural Credit Policy Council (DA-ACPC) to MSMEs affected by the
36 
COVID-19 pandemic engaged in infrastructure, service industry, and/or
37 
manufacturing business.


1 
The DBP may undertake other similar activities as may be provided
2 
under the rules and regulations to be issued to implement this Act.
3 
Sec. 6. Increase in DBF's Authorized Capital Stock. — Section 7 of
4 
Executive Order No. 81, as amended by Republic Act No. 8523, otherwise
5 
known as “The 1986 Revised Charter of The Development Bank of The
6 
Philippines”, as amended, is hereby further amended to read as follows:
7 
“Section 7. Authorized Capital Stock-Par Value. The capital stock
8 
of the Bank shall be [Thirty-five---- billion---- pesos
9 
(pss^oqQjOOO^ooQtOO)] one hundred billion pesos
10 
(PHPlOO,000,000,000.00) to be divided into [Three hundred
11 
fifty ■■million (350,000;QQQ)] ONE BILLION (1,000,000,000)
12 
common shares with par value of One hundred pesos
13 
(PhPlOO.OO) per share, which shall be fully subscribed by the
14 
aNational gGovemment: [Upon the effectivity-of this-Gharter, the
15 
National Government-shall initially subscribe-to One-hundred
16 
twenty-five million (125,000,-000) common shares of stock worth
17 
Twelve billion five hundred million pesos (P12,500,000,000.0Q)7
18 
Five billion pesos-(P5,000,000,000.00)-of whioh-shall-be deemed
19 
paid for by the government and the balance shall be paid for-by
20 
the -government out of the stock dividends-to-be declared by-the
21 
Bonk from its unappropriated retained earnings: Provided, That
22 
the dividends due-the national government pursuont-to RepubUe
23 
Act No;- 7656- shall first be paid;—] PROVIDED, THAT THE
24 
PRESIDENT OF THE PHILIPPINES MAY APPROVE THE
25 
INCREASE IN THE CAPITALIZATION OF THE BANK, UPON
26 
THE RECOMMENDATION OF THE BOARD AND THE
27 
CONCURRENCE OF THE SECRETARY OF FINANCE, UP TO
28 
SUCH AN AMOUNT AS MAY BE NECESSARY TO ATTAIN THE
29 
OBJECTIVES OF THIS CHARTER.”
30 
CHAPTER 2
31 
Land Bank of the Philippines
32 
Sec. 7. Loan Assistance Program of the Land Bank of the Philippines
33 
(LandBank;. — The LandBank shall expand its loan program for qualified
34 
MSMEs affected by the COVID-19 pandemic under this Act and those covered
35 
under Republic Act No. 11494 or “the Bayanihan to Recover as One Act”:
36 
Provided, That such loans shall be granted in accordance with the rules and
37 
regulations that shall be issued to implement this Act and the following
38 
guidelines:


1 
(a) Eligible MSMEs under this Act should be engaged in activities in the
2 
agribusiness value chain; and
3 
(b) The loans granted hereunder should comply with the applicable
4 
prudential standards and regulations of the BSP.
5 
The LandBank shall likewise extend loans to LGUs subject to existing
6 
rules and regulations.
7 
Sec. 8. LandBank Rediscounting and other Programs. — Subject to
8 
applicable prudential standards and regulations of the BSP, the LandBank
9 
may rediscount loans to eligible MSMEs engaged in activities in the
10 
agribusiness value chain granted by BSFIs, the SBC, and those granted
11 
pursuant to credit programs of the DA-ACPC to MSMEs affected by the
12 
COVID-19 pandemic.
13 
The LandBank may undertake other similar activities for purposes of
14 
this Act as may be provided under the implementing rules and regulations to
15 
be issued.
16 
CHAPTER 3
17 
Special Holding Company
18 
Sec. 9. Creation of Investment Vehicle. — To ensure that Strategically
19 
Important Companies (SICs) remain solvent, the LandBank and DBP are
20 
hereby authorized to invest in, or enter into a joint venture agreement to
21 
incorporate a special holding company (the “SHC”) that is a stock corporation
22 
to be organized under Republic Act No. 11232, otherwise known as “The
23 
Revised Corporation Code of the Philippines,” within six (6) months beginning
24 
from the date of effectivity of the rules and regulations of this Act, or effectivity
25 
of applicable revenue regulations, whichever comes later. The establishment,
26 
administration, and operation of the SHC shall be governed by the following
27 
principles:
28 
(a) The purpose of the SHC is to rehabilitate SIC affected by the COVID-
29 
19 pandemic which are experiencing temporary solvency issues;
30 
(b) SICs are investee companies that are nationally significant, or those
31 
with high economic returns or high employment potential, and
32 
which are engaged in any of the following “strategically important
33 
industries or sectors,” such as, but not limited to, agriculture,
34 
construction, education, food industry, healthcare, infrastructure,
35 
low-cost and socialized housing, manufacturing, power and energy,
36 
product distributor/retailer, services, tourism and hospitality,
37 
transportation and logistics, water and sanitation, and other
38 
industries to be identified in the rules and regulations issued to


1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
implement this Act: Provided, That a SIC must be able to 
demonstrate upstream and downstream linkages to other firms 
and/or industries, substantial employment to the community, and 
exhibit high degree of process efficiency, cost efficiency, product 
quality, and environmental soundness: Provided, further, That a SIC 
can show proof of temporary solvency problems due to the pandemic, 
financial soundness prior to the pandemic, and credible and sound 
financial rehabilitation plan.
(c) Equity participation in the SHC may be offered to, and held by, 
qualified private sector investors, including multilateral companies 
and lending institutions, as may be determined by the LandBank 
and DBF: Provided, That majority ownership of the total outstanding 
Capital stock in the SHC shall be held by the LandBank and DBF 
until such time that they have recovered or will be able to recover 
their investment in the SHC;
(d) The LandBank and the DBF shall dispose of their stockholdings in 
the SHC to qualified private sector investors as they may determine. 
The LandBank and DBF shall provide equal opportunity for equity 
participation in the SHC to all qualified investors, including 
multilateral companies and lending institutions. When private 
shareholdings in the SHC reaches fifty percent (50%) of the total 
outstanding capital stock, the stockholders thereof shall cause the 
adoption and registration with the Securities and Exchange 
Commission (SEC) of the company’s amended articles of 
incorporation within three (3) months from such transfer of 
ownership;
(e) The SHC, as a government-owned or controlled corporation (GOCC), 
and the investments of DBF and LandBank therein, shall be subject 
to the power of the Commission on Audit (COA) to audit and examine 
GOCCs and the investments of government in corporations: 
Provided, That the audit of the SHC by the COA shall not preclude 
the SHC from engaging the services of a private auditing firm when 
equity participation in the SHC is offered to qualified private 
investors: Provided, further. That even if the services of the latter are 
availed of, the audit report of the COA shall serve as the report for 
purposes of compliance with audit requirements as required of a 
GOCC under applicable law;
(f) The SHC shall devise mechanisms that shall protect the 
government’s investment, such as issuing a special class or series of 
shares, or entering into shareholders’ or voting share agreements for 
the purpose as provided in the rules and regulations issued to 
implement this Act.


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
Sec. 10. Powers of the Investment Vehicle. — The SHC shall have the 
powers granted to a stock corporation under Republic Act No. 11232. 
Furthermore, the power of the SHC to invest shall be subject to the following 
investment guidelines:
(a) To avoid undue risk concentration from excessive exposures, the 
investment of the SHC in an investee company and the total 
investment in companies belonging to the same industry or sector 
shall be subject to a ceiling in relation to its net income or capital as 
prescribed under the implementing rules and regulations;
(b) The SHC can only invest in corporations engaged in strategically 
important industries or sectors that are experiencing temporaiy 
solvency issues because of the COVID-19 pandemic, such as those 
with considerable impact on the economy;
(c) Such investment shall be in the form of (i) limited equity 
participation by subscription or acquisition of shares, (ii) execution 
of convertible loans or purchase of convertible bonds; and/or (iii) 
investment in such other securities as may be issued by the investee 
corporations, acceptable to the DBF and LandBank; and
(d) The investee company is eligible based on the requirements in this 
Section and in Section 13 of this Act.
Sec. 11. Board of Directors of the SHC- The powers and authority of the 
SHC shall be vested in, and exercised by a Board of Directors, hereinafter 
referred to as the “Board,” composed of nine (9) members, as follows:
(a) The Secretary of Finance, as ex-officio Chairperson;
(b) The President of the LandBank;
(c) The President of DBP;
(d) The President or Chief Executive Officer of the SHC;
(e) Two (2) independent Directors;
(f) Three (3) directors who shall be appointed by the LandBank, DBP, 
and the private equity investor(s), if any, in proportion to the voting 
shares held in the SHC
The members of the Board shall elect from among themselves the Vice 
Chairperson. The ex-officio members of the Board may designate their 
respective representatives who shall exercise the powers of a director.
Once the private shareholdings in the SHC reaches fifty percent (50%) 
of the total outstanding capital stock, subject to the proviso of Chapter 3, 
Section 9(c) of this Act, the company shall cease to be a GOCC, the ex-officio 
directors will cease to be members of the Board, and the membership of the


1 
Board shall be based on the election of the directors by the voting shares held
2 
by the shareholders, pursuant to the provisions of Republic Act No. 11232.
3 
The Board shall provide for an organization and staff of officers and
4 
employees of the SHC and fix their remunerations and other emoluments. All
5 
positions in the SHC shall be governed by the compensation, position
6 
classification system, and qualification standards approved by the Board
7 
based on a job analysis of actual duties and responsibilities. The
8 
compensation plan shall be comparable with the prevailing compensation
9 
plans in the private sector and shall be subject to periodic reviews once every
10 
two (2) years, without prejudice to early merit or increases based on the SHC’s
11 
productivity and profitability. The SHC, being a GOCC, shall therefore be
12 
exempt from existing laws and the rules and regulations on compensation,
13 
position classification, and qualification standards in the government service.
14 
Sec. 12. Responsibility of the Board and the Employees of the SHC —
15 
The Board shall set appropriate standards and corporate governance for the
16 
investee companies that the SHC will invest in. The Board shall likewise
17 
institute mechanisms to oversee that such standards are followed by the
18 
investee company.
19 
The general rule and the exception therefrom on the liability of public
20 
officers as provided in Sections 38 and 39 of Chapter 9, Book 1 of the Revised
21 
Administrative Code of 1987 shall apply to the members of the Board and
22 
other personnel of the SHC Unless the actions or omissions of the SHC,
23 
members of the Board and its other personnel are finally adjudged to be in
24 
wilful violation of this Act, performed in evident bad faith or with gross
25 
negligence, they shall be held free and harmless to the fullest extent permitted
26 
by law from any liability, and they shall be indemnified for any and all
27 
liabilities, losses, claims, demands, damages, deficiencies, costs and expenses
28 
of whatsoever kind and nature that may arise in connection with the exercise
29 
of their powers and performance of their duties and functions.
30 
Sec. 13. Requirements for the Investee Company. — To be eligible, the
31 
investee company must not be a party to any pending tax-related cases in
32 
court for tax collection or tax evasion, must not be a debtor in any bankruptcy
33 
proceeding prior to the enhanced community quarantine period, and must not
34 
be insolvent and is capable of being rehabilitated as determined by the SHC
35 
The agreement between the SHC and the investee company must
36 
contain the following minimum conditions:
37 
(a) The investee company must not reduce the number of employees
38 
beyond the percentage prescribed by the SHC;
39 
(b) The investee company shall not, without prior authority from the
40 
SHC, be allowed to issue stock dividends and repurchases during
41 
the term of the investment;


1
2
3
4
5
6
7
8 
g
10
11
12
13
14
15
16
17
18
19
20 
21
(c) The investee company shall not issue cash dividends during the term 
of the investment;
(d) The investee company must not increase the salaries, benefits and 
other forms of remuneration of its senior executive officers and 
members of its board;
(e) The investee company shall not provide or grant senior executive 
officers and members of its Board separation pay or retirement pay: 
Provided, That any amount received by the senior executive officers 
and members of the board which is in violation of the foregoing shall 
be returned;
(f) The investee company shall not incur irregular, unnecessary,
excessive, extravagant or unconscionable expenditures such as 
entertainment, 
events, 
office/facility 
renovations,
aviation/transportation services and other activities;
(g) The ownership of the SHC in the investee company shall not be 
diluted and a provision protecting the value of the shares of the SHC 
from market transactions such as stock splits, mergers and other 
forms of reorganization and recapitalization shall be included in the 
agreement; and
(h) The investment in the investee company shall be time-bound with a 
definite exit mechanism.
22 
Provided, further, That additional conditions and provisions may be
23 
imposed by the SHC to ensure that the investment will be properly utilized
24 
and ensure the successful rehabilitation of the investee company.
25 
CHAPTER 4
26 
Incentives and Exemption Privileges of the DBP, LandBank, and the
27 
SHC
28 
Sec. 14. Tax Exemptions and Fee Privileges. - Any existing law to the
29 
contrary notwithstanding, the following shall be exempt from documentary,
30 
stamp tax, capital gains tax, creditable withholding income tax, value-added
31 
tax, gross receipts tax, and such other taxes that may be imposed under
32 
Republic Act No. 8424, or the “National Internal Revenue Code of 1997,” as
33 
amended, whichever is applicable pursuant to the regulations to be issued by
34 
the Department of Finance (DOF), upon the recommendation of the Bureau of
35 
Intern^ Revenue (BIR):
36
37
38
39
(a) Loan assistance program, rediscounting and other programs of the 
DBP and LandBank under Chapters 1 and 2 of this Act, respectively, 
including dation in payment (dacion en pago) by the borrower or by 
a third party in favor of the DBP and the LandBank; and
40
(b) Transactions of the SHC as to its:


1
2
3
4
5
6
(i) 
subscription or acquisition of shares;
(ii) 
execution of convertible loans or purchase of convertible 
bonds;
(iii) 
investment in such other securities as may be issued by the 
investee corporations, acceptable to DBP and LandBank; and
(iv) 
acquisitions of assets of an investee company.
7
8
9
10
11
12
13
Transfer of properties in the abovementioned transactions shall also be 
subject to the following, in lieu of the applicable fees:
(a) Fifty percent (50%) of the applicable mortgage registration and 
transfer fees on the transfer of real estate mortgage and security 
interest to and from DBP, LandBank, or the SHC, as imposed in 
accordance with the existing circulars of the Land Registration 
Authority (LRA);
14 
(b) Fifty percent (50%) of the filing fees for any foreclosure initiated by
15 
the DBP and LandBank in relation to loan assistance and
16 
rediscounting programs as prescribed by the Rules of Court; and
17 
(c) Fifty percent (50%) of the land registration fees prescribed under the
18 
existing circulars of the LRA.
19 
The tax exemptions and fee privileges in this Section cannot be enjoyed
20 
by any person not a party to the above transactions except in cases of
21 
subsequent transfers by the DBP, LandBank, or the SHC to a third party of
22 
rediscounted loans and other credit accommodations, properties, shares and
23 
other assets, acquired pursuant to the said transactions.
24 
The incentives enumerated herein may be availed of for a period of three
25 
(3) years from the date of effectivity of the applicable implementing rules and
26 
regulations or of the applicable revenue regulations, whichever comes later:
27 
Provided, That the tax exemption and fee privileges of subsequent transfers
28 
may be availed of for a period of three (3) years from the date of acquisition by
29 
the DBP, LandBank, or the SHC; Proxnded, further, That the Secretary of
30 
Finance may extend such period by a maximum of three (3) years: Provided,
31 
finally, That once the SHC ceases to be a GOCC, its tax exemptions and fee
32 
privileges under this clause shall be automatically revoked.
33 
Sec. 15. Emergency Procurement under the Government Procurement
34 
Reform Act. — In order to ensure the expeditious implementation of their
35 
mandates under this Act, procurement activities undertaken by the
36 
LandBank, DBP, and the SHC in light of the COVID-19 pandemic and
37 
pursuant to their mandate and functions as defined in this Act, shall adopt
38 
the rules under Negotiated Procurement under Emergency Cases under
39 
Section 53(b) of Republic Act No. 9184, or the “Government Procurement
40 
Reform Act” for a period of three (3) years from the effectivity of the


1 
implementing rules and regulations to be issued under Chapter 5, Section 20
2 
of this Act.
3 
Sec. 16. Other Exemptions of the SHC— The SHC shall be exempt from
4 
the provisions of Republic Act No. 10149, or the “GOCC Governance Act of
5 
2011.”
6 
Further, transactions by the SHC shall be exempt from the provisions
7 
of Republic Act No. 10667, or the “Philippine Competition Act” for a period of
8 
three (3) years from its incorporation: Provided, That this exemption shall only
9 
apply to acquisitions of assets of an investee company by the SHC pursuant
10 
to its powers under this Act.
11 
Any provision of law to the contraiy notwithstanding, the disposal of
12 
assets of an investee company by the SHC pursuant to their mandate and
13 
functions, as well as the disposal of shares, assets, or investments by
14 
LandBank or DBP, or both, in the SHC, shall be exempt from the provisions
15 
of laws and regulations on government disposal of assets.
16 
Sec. 17. Prohibition Against Injunction. - No court, other than the Court
17 
of Appeals and the Supreme Court, shall issue any temporary restraining
18 
order, preliminary injunction, preliminary mandatory injunction, status quo
19 
order, stay order, commencement order, or any other issuance of injunctive
20 
relief against the sale or acquisitions of assets of an investee company by the
21 
SHC, or the disposal of assets of an investee company by the SHC, including
22 
judicial or extrajudicial foreclosure sales or execution sales.
23
24
CHAPTERS
Miscellaneous Provisions
25 
Sec. 18. Ratios, Ceilings, and Limitations. — For purposes of this Act,
26 
the Monetary Board may exempt DBP and LandBank from such ratios,
27 
ceilings and limitations, provided under Republic Act No. 8791 or the “The
28 
General Banking Law of 2000,” for a period as may be determined by the
29 
Monetary Board, subject to conditions as may be prescribed by the Monetary
30 
Board such as, but not limited to, the adoption of appropriate risk
31 
management measures to mitigate risks that may arise from the
32 
implementation of this law.
33 
Sec. 19. Appropriations. — The amount of Ten Billion Pesos
34 
(PhPl0,000,000,000.00) is hereby appropriated out of any funds actually
35 
available in the National Treasury of the Philippines not otherwise
36 
appropriated, as certified by the National Treasurer, to fund the following:
37 
(a) The amount of Two Billion Five Hundred Million Pesos
38 
(PhP2,500,000,000.00) for the implementation of Chapters 1 and 3 of this Act:
10


1 
Provided, That this amount shall be applied as additional paid-up capital of
2 
the DBP, for the purposes of lending under the loan assistance program to
3 
qualified MSMEs, its rediscounting and other programs, and the creation of
4 
the SHC: Provided, further. That DBP can also utilize funds appropriated 
5. under Section 10 of Republic Act No. 11494 or “the Bayanihan to Recover as
6 
One Act” for the implementation of Chapter 1 of this Act; Proinded,finally, That
7 
the total amount of PhP2,500,000,000.00 can be fully utilized, if required, for
8 
the equity infusion in the SHC; and
9 
(b) The amount of Seven Billion Five Hundred Million Pesos
10 
(PhP7,500,000,000.00) for the implementation of Chapters 2 and 3 of this Act:
11 
Provided, That this amount shall be applied as additional paid-up capital of
12 
LandBank, for the purposes of lending under the loan assistance program to
13 
qualified MSMEs, rediscounting and other programs of LandBank, and the
14 
creation of the SHC: Provided,further, That LBP can also utilize funds
15 
appropriated under Section 10 of Republic Act No. 11494 or “the Bayanihan
16 
to Recover as One Act” for the implementation of Chapter 2 of this Act;
17 
Provided, finally. That the total amount of PhP7,500,000,000.00 can be fully
18 
utilized, if required, for the equity infusion in the SHC;
19 
Sec. 20. Implementing Rules and Regulations — Within thirty (30) days
20 
from the effectivity of this Act, the DOF, together with the BIR, the BSP, the
21 
SEC, the DBP, and the LandBank shall jointly promulgate the necessary rules
22 
and regulations for the effective implementation of this Act: Provided, That the
23 
DOF may call upon any agency to provide information or assistance in the
24 
drafting of the rules and regulations: Provided, further. That within thirty (30)
25 
days from the effectivity of this Act, the DOF, upon recommendation of the
26 
BIR, shall promulgate the revenue regulations implementing the fiscal
27 
incentives under this Act.
28 
Sec. 21. Oversight Committee. - There is hereby created a Joint
29 
Congressional Oversight Committee (JCOC) to oversee, monitor, and evaluate
30 
the implementation of this Act. The JCOC shall be composed of five (5)
31 
members each from the House of Representatives and from the Senate. The
32 
JCOC shall be co-chaired by the Chairpersons of the House Committee on
33 
Banks and Financial Intermediaries and the Senate Committee on Banks,
34 
Financial Institutions and Currencies.
35 
The Speaker and the Senate President shall designate the other four
36 
members of the JCOC of the House and the Senate from among the members
37 
of the House Committee on Banks and Financial Intermediaries and the
38 
Senate Committee on Banks, Financial Institutions, and Currencies, at least
39 
one member of which shall be from the minority.
40 
Sec. 22. Separability Clause. - If any provision of this Act is held
41 
unconstitutional or invalid, all other provisions not affected thereby shall
42 
remain valid.
11


1 
Sec. 23. Repealing Clause. - All laws, decrees, executive orders, rules
2 
and regulations or parts thereof, which are inconsistent with this Act, are
3 
hereby repealed, amended or modified accordingly.
4 
Sec. 24. Effectivity. - This Act shall take effect immediately upon its
5 
publication in the Official Gazette or in a newspaper of general circulation.
6 
Approved,
12