FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
Third Regular Session 
) 
SENATE 
S.B. No.3548 
Introduced by Senator Edgardo J.Angara 
" 
EXPLANATORY N0TE 
1.\ 
,{ 
B' fL 
This bill seeks to amend certain provisions of Republic Act No. 8367, otherwise known 
as the" Revised Non-Stock Savings and Loan Association Act of 1997." 
The Non-Stock Saving and Loans Associatipn (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 P80A billion at the end of 
December 2008, and this growth, per the 2008 Report of the 8angko 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." 
At present, in terms of resources and capability, the NSSLAs is operating with a 
network of 144 offices in the entire Philippines. As nOr)-bank financial institutions, the NSSLA 
industry, already regulated under Republic Act No. 8367, however, there is a need to amend 
RA 8367 to provide optimum service 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 efficien't intermediaries between savers and 
borrowers, encouraging Filipinos to save, empowering the members of the household through 
their credit facilities and services, particularly providing short-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 interest of 
association members, and to maximize the protection of member 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 Ov.erseas 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 fYIost 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. 
" 


FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session 
) 
) 
) 
SENATE 
S.No. 
3546 
Introduced by Senator Edgardo J. Angara 
... ~ 
AN ACT FURTHER STRENGTHENING NON-STOCK SAVINGS AND LOAN 
ASSOCIA nONS, 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: 
, 
2 
"Sec. 4. Organization of an Association. - At least five (5) but not more than 
3 
fifteen (15) members of a well-defined group as provided herein may form an association 
4 
under this Act. An association, prior to transacting any business, shall secure a license 
5 
from the Monetary Board and register with the Securities and Exchange Commission 
6 
(SEC). The application for a license, signed lly a majority of the incorporators and 
7 
verified by one of the trustees, shall include: 
8 
"(a) the proposed Articles of Incorporation and By-Laws together with names 
9 
and addresses of the incorporators, trustees aI)d officers, with a statement of their 
10 
character, experience and general fitness to engage in the non-stock savings and loan 
11 
business; 
12 
"(B) A NOTARIZED AGREEMENT BETWEEN THE EMPLOYER 
13 
AND INCORPORATORS OF THE ASSOCIATION COVERING THE 
14 
COLLECTION MECHANISM FOR THE ASSOCIATION; 
15 
"c) [ (b)] an itemized statement of the estimated receipts and expenditures 
16 
of the proposed association for the first year; 
17 
"D) [c)] a filing fee in such amount as may be determined by the Monetary 
18 
Board; and 


"E) [d)] such other information as the Mqnetary Board may require. 
'. 
2 
" The SEC shall not register the Articles of, Incorporation and By-Laws of a 
3 
proposed association unless the application is accompanied by a certificate of the 
4 
Monetary Board approving the same. The Monetary Board may deny the application 
5 
to organize an association under this Act if it finds that the association is being 
6 
organized for any purpose other than to engage in business of a legitimate non-stock 
7 
savings and loan association or that the associatioJ.l's financial program is unsound, 
• 
8 
or that the proposed members are adequately served by one or more existing 
9 
associations. 
10 
"PRIOR TO ITS OPERATION, AN ASSOCIATION IS REQUIRED TO 
11 
SECURE A FAVORABLE ENDORSEMENT FROM THE NATIONAL 
12 
ORGANIZATION OF NON-STOCK SAVINGS AND LOAN ASSOCIATIONS 
13 
DULY RECOGNIZED AND ACCREDITED ~Y THE BANGKO SENTRAL 
14 
FOR PURPOSES 
OF ENSURING 
COMPLIANCE, 
SETTING AND 
15 
MAINTENANCE OF STANDARDS, FORMULATION OF PROGRAMS 
16 
NECESSARY FOR THE DEVELOPMENT OF A STRONG AND DYNAMIC 
17 
NON-STOCK SAVINGS AND LOAN ASSOCIATION IN THE PHILIPPINES. 
18 
"The association shall confine its membership to a well-defined group of 
19 
persons and shall not transact business with the general public. A "well-defined 
20 
group" shall be defined by the Monetary Board, and shall consist of, but shall not be 
21 
limited to, any ofthe following: 
22 
"I) employees, officers, and directors of [one company] 
PRIVATE 
23 
COMPANIES, including member-retirees BELONGING TO THE SAME 
24 
TRADE AND INDUSTRY; 
25 
"2) government 
employees 
belonging 
,to 
the 
same 
department[/], 
26 
[branch]BUREAU[/], office, AGENCY OR IN:STRUMENTALITY OF THE 
27 
GOVERNMENT 
IN 
ACCORDANCE 
WITH 
THE 
REVISED 
28 
ADMINISTRATIVE CODE OF 1987, including member-retirees; and 
29 
"3) SPOUSES AND immediate members of the families [(]up to [second] 
30 
THIRD degree of consanguinity or affinity!)] of those falling under paragraphs I and 
31 
2 above, INCLUDING THEIR LEGALLY ADOPTED CHILDREN. 


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"Associations whose Articles of Incorporations and By-Laws 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 circumstan,ces 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 corpqration 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: 
"SEC. 7. 
Powers of Associations. - The asso'ciation [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 
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 
31 
UNCOLLATERALIZED LOAN, THE MAXIMUM LOAN AMOUNT OF A 
32 
MEMBER WILL BE BASED ON HIS PAYI~G CAPACITY: PROVIDED, 
33 
THAT HIS NET TAKE HOME PAY SHALL BE NO LOWER THAN WHAT 
34 
IS PROVIDED BY THE GENERAL APPROPRIATIONS ACT FOR 
35 
GOVERNMENT EMPLOYEES OR THAT SET BY COMPANY INTERNAL 
36 
POLICIES, IN CASE OF PRIVATE EMPLOYEES. 


IN CASE OF COLLATERALIZED LOANS, [T]The loan[s] AMOUNT 
2 
shall not exceed the members' deposits and contributions in the association, plus 
3 
twelve (12) months of his OR HER regular salary as the association may allow 
4 
AND/or seventy percent (70%) of the [fair market] APPRAISED value of any 
5 
property acceptable as collateral on first mortgage that [he] THE MEMBER may 
6 
offer as security: PROVIDED, FURTHER, THAT THE CONDITION ON NET 
7 
TAKE HOME PAY UNDER UNCOLLATlERALIZED LOAN IS COMPLIED 
8 
WITH. THE ASSOCIATION MAY PRESCRIBE THE INTEREST RATE, 
9 
FEES, CHARGES, REPAYMENT PERIOD AND OTHER TERMS AND 
10 
CONDITIONS OF THE LOAN BASED ON SOUND RISK MANAGEMENT 
11 
[: Provided, That no loan shall have the maturity date of more than five (5) years, 
12 
except loans on the security of unencumbered real estate for the purpose of home 
13 
building and home development, which may be granted with maturities not 
14 
exceeding twenty-five (25) years, and medium and long-term loans to finance 
15 
agricultural projects, subject to regulations prescribed by the Monetary Board]: 
16 
Provided, [further], FINALLY, That [the treasurer, cashier, or paymaster of the 
17 
office] NOTWITHSTANDING THE PROVISION OF ANY EXISTING LAW, 
18 
RULE AND REGULATION TO THE CONTRARY, THE COMPANY, 
19 
DEPARTMENT, BUREAU, OFFICE OR AG,ENCY employing a member is 
20 
required [, notwithstanding the provision of any existing law, rule and regulation to 
21 
the contrary,] to make deductions from A MEMBER'S [his] salary, wage, income, 
22 
OTHER COMPENSATION, [or] retirement pension, OTHER RETIREMENT 
23 
AND SEP ARA TION BENEFITS AND OTHER RECEIVABLES pursuant to the 
24 
terms of [his] THE MEMBER'S loan [, and all other deductions authorized by the 
25 
member,] OR HIS OR HER AUTHORIZATION AND to remit such deductions to 
26 
the association [concerned, and to collect such reasonable fee for his services as may 
27 
be authorized by rules promulgated by the Monetary Board], 
28 
"[In addition to the powers granted it by this Act and existing laws, any 
29 
association may:] 
30 
"[a) charge reasonable interest and collect such necessary fees and charges 
31 
incidental to the grant ofloans]; 
32 
"C)[b)] invest its funds in any TRADABLE INVESTMENT-GRADE 
33 
[sound non-speculative enterprise as well as in] bonds, security, and other obligations 
34 
issued by the government of the Philippines, or any of its political subdivisions, 
35 
instrumentalities, or corporations [including government-owned or -controlled 
36 
corporations,] AND OTHER INVESTMENT OUTLETS subject to [the rules and 
37 
regulations of the Monetary Board] PRIOR BANGKO SENTRAL APPROVAL; 


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"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 TRUSTEESIDIRECTORS; 
"E) [d)] borrow money or incur such obligations not exceeding twenty percent 
(20%) of the total assets of the association, fr~m any lending institution. 
The 
Monetary Board, may, in meritorious cases, raise the ceiling on the borrowing 
capacity of an association to an amount not exceedi,hg 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 associ~tion's creditors shall not exceed 
nineteen (19) at anyone time; 
"F)[e)] maintain deposits with banks: Pro~ided, 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)[f)] [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 
EXTENDING 
FINANCIAL 
ASSISTANCE 
EXPERIENCING LIQUIDITY PROBLEM; iaI1,d] 
MAIN 
OBJECTIVE 
OF 
TO 
AN 
ASSOCIATION 
"H)[g)] engage in death benefit program meant exclusively for the mutual 
benefit of its members[,]; 
"I) REDISCOUNT PAPERS WITH THE BANGKO SENTRAL OR 
24 
OTHER BANKS AND THEIR BRANCHES AND AGENCIES. 
THE 
25 
BANGKO SENTRAL SHALL SPECIFY THE NATURE OF THE PAPER 
26 
DEEMED ACCEPTABLE FOR REDISCOUNT RATE TO BE CHARGED BY 
27 
ANY OF THESE INSTITUTIONS; AND 
28 
"J)PERFORM SUCH ACTS AND 
FUNCTIONS AS 
MAY BE 
29 
AUTHORIZED AND/OR DELEGATED BY THE BANGKO SENTRAL." 
, 
30 
SEC. 3. Section 9 of Republic Act No, 8367 is hereby amended to read as follows: 
31 
"SEC. 9. 
Service 
Units 
An 
association 
[shall] 
IS 
HEREBY 
32 
AUTHORIZED TO open, maintain and operate service units as may be necessary in 
33 
order to EFFICIENTLY AND EFFECTIVELY· deliver services to its members 
34 
subject to RULES AND REGULATIONS PRESCRIBED BY [approval of] the 
35 
Monetary Board[.]: PROVIDED, HOWEVER, THAT SERVICE UNITS 
" 
36 
CANNOT ACCEPTIRECEIVE DEPOSITS OR CONTRIBUTIONS." 


SEC. 4. A new section, Section 9-A, is hereby added to Republic Act No. 8367 as 
2 
to read as follows: 
3 
"SEC.9-A. 
PROVISION OF OFFICE SPACE. - THE EMPLOYER-
4 
ENTITY OR CORPORATION SHALL PROVIDE 
NON-STOCK 
5 
SAVINGS AND LOAN ASSOCIATIONS WITH ADEQUATE OFFICE 
6 
SPACE IN ITS PREMISES WITHIN WHICH THEY CAN CONDUCT 
7 
BUSINESS." 
8 
SEC. 5. Section 10 of Republic Act No. 8367 is hereby amended to read as 
9 
follows: 
'. 
10 
"SEC. 10. Agents and Salesmen. - No pers~n OR ENTITY shall act as a[n] 
11 
SALES agent or [sales] representative of an association [or operate an agency] 
12 
without [obtaining a license from] REGISTERING WITH the [Monetary Board] 
13 
BANGKO SENTRAL. No license OR REGISTRATION is required for a collector 
14 
of an association [but no person shall hold himself out or act as collector unless he is 
15 
authorized as a collector in writing by such associatjon]." 
16 
SEC. 6. Section 11 of Republic Act No. 8367 is hereby amended to read as 
17 
follows: 
18 
"SEC. 11. Merger or Consolidation of Associations. - To achieve simplicity, 
19 
economy and efficiency, MERGER OR CONSO,LIDATION OF SEVERAL OR 
20 
different as~ociations of one company or department or office [may merge or 
21 
consolidate] SHALL BE ALLOWED [upon] SUaJECT TO THE approval of the 
22 
Monetary Board." 
23 
SEC. 7. Section 12 of Republic Act No. 8367 is hereby amended to read as 
24 
follows: 
25 
"SEC. 12. Trustees AND OFFICERS. - Only members are eligible as trustees 
26 
of an association: Provided, That in the case of a merger or consolidation of 
27 
associations duly approved by the Monetary Board, the limitation on the maximum 
28 
number of trustees in a corporation, as provided for in the Corporation Code, shall 
29 
not be applied for a maximum period of three (3) years so that membership in the 
30 
new board may include up to the total number of trustees provided for in the 
31 
respective Articles ofIncorporation of the merging or consolidating associations. 
32 
"AFTER DUE NOTICE TO THE BOA~ OF TRUSTEES OF THE 
'. 
33 
ASSOCIATION, THE MONETARY BOARD MAY DISQUALIFY, SUSPEND 
34 
OR REMOVE ANY TRUSTEE OR OFFICE WHO COMMITS OR OMITS 
35 
AN ACT WHICH RENDER HIM OR HER UNFIT FOR THE POSITION. 


'. 
IN DETERMINING WHETHER AN'INDIVIDUAL IS FIT AND 
2 
PROPER TO HOLD THE POSITION OF A TRUSTEE OR OFFICER OF AN 
3 
ASSOCIATION, REGARD SHALL BE GIVEN TO HIS OR HER 
4 
INTEGRITY, 
EXPERIENCE, 
EDUCATION, 
TRAINING, 
AND 
5 
COMPETENCE." 
6 
SEC, 8, Section 14 of Republic Act No. 8367 is hereby amended to read as 
7 
follows: 
8 
"SEC. 14. Compensation of Trustees, Officers and Employees. - No trustee, 
9 
officer, or employee of an association shall receive from such association, and no 
10 
association shall pay to any trustee, officer, or ~mployee of such association, any 
11 
commission, emolument, gratuity or reward based,on the volume or number of loans 
12 
made, or based on the interest or fees collected thereon. Nothing in this section 
13 
SHALL BE CONSTRUED AS TO prohibit[s] or OTHERWISE [limits] 
14 
RESTRICT any ofthe following: 
15 
"a) receipt or payment of salaries of trustees, officers and employees; 
16 
"B) RECEIPT OR PROVISION OF FRINGE BENEFITS TO OFFICERS 
17 
AND EMPLOYEES; 
18 
"C)[b)] receipt of payment of commissions to agents whether or not based on 
19 
the volume or number ofloans or on the interest or fees collected thereon; [and] OR; 
20 
"D)[c)] receipt or payment of bonuses to trustees, officers or employees if such 
21 
bonuses are based on the performance and not o.n the volume or number of loans 
22 
made or on the interest or fees collected thereon; 
. 
23 
"[All increase in the compensation, in any,form, of all trustees and trustee-
24 
officers in excess of ten percent (10%) thereof per annum shall require the approval 
25 
ofthe Bangko Sentra1.] 
26 
"IN ORDER TO PROTECT THE FUNDS OF MEMBERS AND 
27 
CREDITORS, THE TERMS AND CONDITIONS OF THE COMPENSATION 
28 
OF TRUSTEES, OFFICERS AND EMPIJOy'EES MAY BE SUBJECT TO 
29 
RULES AND REGULATIONS OF THE BANGKO SENTRAL." 
30 
SEC. 9. Section 16 of Republic Act No. 8367 is hereby amended to read as 
31 
follows: 


"SEC. 16. Execution of Loan Agreement. -
For each loan made by an 
2 
association, [a written note or other obligation expressing a rate of interest must be 
3 
executed by the borrower] PAYMENT OF A SPECIFIC RATE OF INTEREST 
4 
BY THE BORROWER SHALL BE EXPRESSLY STIPULATED IN THE 
5 
LOAN AGREEMENT OR ANY DOCUMENT DEEMED AN INTEGRAL 
6 
PART THEREOF." 
7 
8 
follows: 
SEC. 10. 
Section 18 of Republic Act No. 8367 is hereby amended to read as 
9 
"SEC. 18. Limitations on Investment. - a) No association at anyone time shall 
10 
invest in bonds and securities in a total amount in excess of [ten percent (10%)] 
11 
TWENTY-FIVE PERCENT (25%) of the total assets of such association without 
12 
prior written approval of the Bangko Sentra!' 
13 
"b) No association at anyone time shall rnvest in real property in a total 
14 
amount in excess offive percent (5%) of the total assets of such association. 
15 
"c) No association at anyone time shall invest in furniture, fixture, furnishings 
16 
and equipment and leasehold improvements for its offices, in an amount more than 
1 7 
ten percent (10%) of its total capital contribution." 
18 
SEC. 11. 
Section 19 of Republic Ac~' No. 8367 is hereby amended to read as 
19 
follows: 
20 
"SEC. 19. Reserves. - Every association shall create a withdrawable share 
21 
reserve which shall consist of [two percent (2%)] ONE PERCENT (1 %) of the total 
22 
capital contributions of the members [which the Monetary Board may increase to a 
23 
maximum of three percent (3%), as the situation warrants]. THE BANGKO 
24 
SENTRAL SHALL, IN MERITORIOUS <;ASES AND WHEN 
THE 
25 
INTERESTS OF THE ASSOCIATION AND ITS MEMBERS SO DICTATE, 
26 
ALLOW 
THE 
STAGGERED 
BOOKING 
OF 
ITS 
RESERVES 
27 
REQUIREMENT TO INCLUDE ITS WITHDRAWABLE SHARE RESERVE, 
28 
SURPLUS RESERVE FOR LEDGER DISCREPANCIES AS WELL AS ITS 
29 
RESERVES FOR OFFICE PREMISES, FURNITURE, FIXTURES AND 
30 
EQUIPMENT." 
31 
[No association shall distribute to its members any portion of its net income if 
32 
its withdrawable share reserve is less than the minimum requirement, or if by such 
33 
payment or distribution, such reserve will be reduced to an amount below the 
34 
minimum requirement provided herein.] 
35 
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 
2 
as follows: 
3 
"SEC. 21. Annual Reports by the Associatiotl. - Every association shall, within 
4 
one hundred twenty (120) calendar days after the close of its fiscal year furnish the 
5 
Monetary Board and post in any of the association's bulletin board or in any other 
6 
conspicuous place a copy of its financial statement, AS REVIEWED BY A 
7 
BANGKO SENTRAL-ACCEPTABLE INDEPENDENT AUDITOR, showing, in 
8 
such form and detail as the Monetary Board shall require, the amount and character 
9 
of the assets arid liabilities of the association at tht; end of the preceding fiscal year. 
10 
The Monetary Board may, in addition to the foregoing, require the disclosure of such 
11 
other information as it shall deem necessary for the protection of the members of the 
12 
association." 
13 
SEC. 14. Section 22 of Republic Act No. 8367 is hereby amended to read as 
14 
follows: 
15 
"SEC. 22. Regulatory Powers Over AssoCiations. -
Notwithstanding the 
16 
provisions of Section 130 of Republic Act No. 7653, the power to regulate the 
17 
operations of any association by the Monetary Board shall continue: PROVIDED, 
18 
THAT THE MONETARY BOARD SHALL TAKE INTO ACCOUNT THE 
19 
UNIQUE BUSINESS NATURE AND THE INTRINSIC MANDATE AND 
20 
MISSIONS OF ASSOCIATIONS IN THE ADOPTION OF A REGULATORY 
21 
FRAMEWORK. SUCH PERTINENT FEATURES OF THE REGULATORY 
22 
FRAMEWORK PRESENTLY APPLIED TO REGULAR BANKS AND 
23 
QUASI-BANKS MAY BE ADOPTED. SUCH POWERS SHALL [and] consist 
24 
of the following: 
25 
"a) [in seeing] ENSURE to it that the capital, financing, direction and 
26 
administration, as well as the integrity, responsibility, and ability of organizets, 
27 
administrators, trustees, and officers of all assodat~bns organized ,and operated under 
28 
this Act, shall reasonably assure the safety of the il)terests which its members entrust 
29 
to them; 
30 
"b) [in regulating] REGULATE the operation and activities of associations, 
31 
which include, among others: 1) in placing limits to the maximum credit allowed any 
32 
individual borrower; 2) in determining the loan repayment period and loan 
33 
procedures; 3) in imposing a uniform accounting system IN COMPLIANCE WITH 
34 
THE PHILIPPINE FINANCIAL REPORTING STANDARDS and marmer of 
35 
keeping the accounts and records of associations; 4) in instituting periodic surveys of 
36 
loan and lending procedures, audits, test check of each and other transactions of 
37 
associations; and 5) whenever necessary, in conducting training courses for personnel 
38 
of associations; 


"c) [in requiring all accountable officers and employees of every association to 
2 
post bonds for the faithful performance of their duties in reasonable sums and with 
3 
such sureties as the Monetary Board may require] PRESCRIBE ADDITIONAL 
4 
LIQUIDITY REQUIREMENTS; 
5 
"d) [in fixing, by rules or by orders, in speGlfic cases, after notice and hearing, 
6 
the limits of loanable -funds, amounts for investment and reserves for withdrawals 
7 
and other contingencies] ENFORCE PROMPT CORRECTIVE ACTION ON 
8 
ASSOCIATIONS SHOWING CONDITIONS INDICATING HIGHER THAN 
9 
NORMAL RISK OF FAILURE; 
10 
"e) [in issuing rules and regulations for the proper implementation of this Act, 
11 
effective administration of the associations, and to] render advisory assistance to all 
12 
interested parties in order to carry out the intents and purposes of this Act; [and] 
13 
"f) [in conducting] CONDUCT such investigations, takE[ing] such remedial 
14 
measures and [exercising] EXERCISE all powers under Republic Act No. 7653, 
15 
insofar as they are applicable in the enforcement ofthis Act. 
16 
"G) IMPOSE UPON ANY ASSOCIi\TiO!'(, ITS TRUSTEES, OFFICERS, 
OR EMPLOYEES, AFTER DUE NOTI<:;E AND HEARING, 
THE 
17 
18 
FOLLOWING 
ADMINISTRATIVE 
SANCTIONS, 
WHENEVER 
19 
APPLICABLE: 
20 
"1) FINES IN AMOUNTS AS MAY BE DETERMINED TO BE 
21 
APPROPRIATE BASED ON THE NATURE AND GRAVITY OF THE 
22 
OFFENSE; 
23 
"2) RESTRICTION OR SUSPENSION OF LICENSE; AND 
24 
"3) OTHER ADMINISTRATIVE SANCTIONS AVAILABLE TO 
25 
THE BANGKO SENTRAL UNDER ITS CHARTER; 
• 
26 
"H) PROVIDE A CREDIT FACILITY TO SYSTEMICALLY CRITICAL 
27 
NON-STOCK SAVINGS AND LOAN ASSOCIATIONS EXPERIENCING 
28 
LIQUIDITY PROBLEMS; AND 
29 
"I) PLACE UNDER RECEIVERSHIP,' AFTER DUE NOTICE AND 
30 
HEARING, AN ERRINGIDISTRESSED ASSOCIATION TO PROTECT THE 
31 
INTERESTS OF ITS MEMBERS PURSUANT TO THE EXISTING RULES 
32 
AND REGULATIONS PROMULGATED BY THE MONETARY BOARD. 


"THE RECEIVER SHALL FORTHWITH GATHER AND TAKE 
2 
CHARGE OF ALL ITS ASSETS AND LIABILITIES AND ADMINISTER 
3 
THE SAME FOR THE BENEFIT OF ITS MEMBERS AS PROVIDED 
4 
UNDER THE REVISED RULES OF COURT. 
THE PROVISIONS OF 
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SECTION 30 OF REPUBLIC ACT NO. 7653 ON THE POWERS, 
FUNCTIONS, DUTIES AND OTHER TERMS OF REFERENCE ON 
RECEIVERS SHALL APPLY. 
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"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 OF 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 
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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. - If any 'provision of this Act is held invalid, 
, 
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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 ofthis Act are hereby repealed or modified accordingly. 


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