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Republic of the Philippines AT EDN 30 222
HOUSE OF REPRESENTATIVES ° 7
Quezon City, Metro Manila TIME: /20) fn *,
ways Pel J
NINETEENTH CONGRESS 7 we
First Regular Session SUNDER

HOUSE BILL NO. 1

Introduced by Representatives FERDINAND MARTIN G. ROMUALDEZ,
YEDDA MARIE K. ROMUALDEZ, FERDINAND ALEXANDER A. MARCOS,
and JUDE A. ACIDRE

EXPLANATORY NOTE

In a bid to contain the spread of the Coronavirus Disease 2019 (“COVID-19”) across the

the National Government was constrained to enforce a massive shutdown of economic
activities, which adversely affected various critical industries, and triggered an economic downturn. Thus,
there is a need for the State to enact measures aimed at supporting industries critical to economic recovery
and maintaining employment levels.

“The proposed legislative measure seeks to strengthen the capacity of the following Government
Financial Institutions, namely: the Land Bank of the Philippines (“LBP”) and the Development Bank of
the Philippines (“DBP”), in order to provide the needed assistance to micro, small, and medium
enterprises (“MSMES”), and other strategically important companies.

‘To this end, the government financial institutions are mandated to expand their credit programs
in order to assist affected MSMEs to meet their liquidity needs. In particular, LBP and DBP are mandated
to expand their credit and rediscounting facilities to affected MSMEs in the agriculture, infrastructure,
manufacturing and service industries.

In addition, the proposed bill authorizes LBP and DBP to create a special holding company which
aims to further reinvigorate these strategically important companies heavily affected by the COVID-19
pandemic. Equity participation in thi holding company may be held by qualified private sector
investors. However, to ensure that the policies and objectives under the proposed bill are effectively
carried out, LBP and DBP are mandated to maintain at least a majority ownership over the special holding
‘company until such time that they have recovered their investment.

‘The special holding company is intended to be a major player in the financial and capital markets
by providing aid to strategically important companies with solvency liquidity issues brought about by
COVID-19 pandemic. For this purpose, the special holding company shall be authorized to invest or
place funds in equity, execute convertible loans or purchase convertible bonds and/or other securities,
in said strategically important companies, as well as to incorporate subsidiaries. Nevertheless, to ensure
that such investments are properly utilized, as well 9 to ensure the successful rehabilitation of strategically
important companies, the legislative measure imyoses restrictions on the investee company by requiring

ni



that the number of employees are not reduced beyond a certain level, limiting its ability to declare
dividends, restricting the increase in salary, separation and retirement pay, and other benefits of the board
and its senior officers, and ensuring that investments of LBP and DBP are not diluted and time-bound
with a definite exit mechanism, among others

In the 18th Congress, this bill was filed by Rep. Junie E. Cua, Chairperson of the Committee on
Banks and Financial Intermediaries. It was approved on 3rd Reading and was transmitted to the Senate.

Considering the state of the economy and the urgent need to provide assistance to MSMEs and
other strategically important companies, the approval of this measure is earnestly sought.

ERDIN. , ‘GYROMUAADEZ,

Repebsentative
First District, Leyte

RIE K. ROMUALDEZ
Representative
Parc List, Tingog Sinirangan

FERDINAND ALEXANDER A, MARCOS
Representative
First District, locos Norte Party-List, Tingog Sinirangan



Soar 9HMEeNnH

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

HOUSE BILLNO_1

Introduced by Representatives FERDINAND MARTIN G. ROMUALDEZ,
YEDDA MARIE K. ROMUALDEZ, FERDINAND ALEXANDER A. MARCOS and
JUDE A. ACIDRE

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:

Section 1. Title, ~ This Act shall be known as the “Government Financial Institutions
(GFls) Unified Initiatives to Distressed Enterprises for Economic Recovery (GUIDE) Act.”

Section 2. Declaration of Policy. — ‘The substantial distuption of the economy due to the
community quarantine measures restricted the operation of numerous businesses.

The State recognizes the role of these businesses composed of micro, small and medium
enterprises (MSMEs) and strategically important companies in providing employment to the
Filipino people and in supporting the Philippine economy. Thus, itis essential that these enterprises
are given necessary access to credit and financial assistance. It is hereby declared the policy of the
State to protect employment and assist distressed enterprises in order to reinvigorate the economy.

Section 3, Definition of Terms. ~ As used in this Act:

(a) Agribusiness value chain refers to a set of actors/players, such as farmers, fisherfolk,
traders, suppliers, processors, and aggregators, who make up the linked sequence of
value-adding activities undergone by an agricultural product when converted from raw
material to the final form itis presented to the consumers,

(b) Micro, Small and Medium Enterprise (MSME) refers to any business activity or enterprise
engaged in industey, agribusiness and/or services, whether single proprietorship,
cooperative, partnership or 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:



COVDHAONA

micro : not more than PhP3,000,000
small : PhP3,000,001 — PhP15,000,000
‘medium: : PhP15,000,001— PhP 100,000,000

(c) Senior executive officers refer to top management officials exercising responsible and
ctitical roles, as may be described further in the rules and regulations to be issued to
implement this Act.

(A). Strategically Important Companies or SICs shall have the meaning ascribed in Section 9(b)
of this Act.

CHAPTER 1 Development Bank of the Philippines

Section 4. Loan Assistance Program of the Development Bank of the Philippines (DBP). — The DBP
shall expand its loan program for qualified MSMEs affected by the COVID-19 pandemic under
this Act and MSMEs covered under Republic Act No. 11494 or “the Bayanihan to Recover as One
Act”: Provided, That such loans shall be granted in accordance with the rules and regulations to be
issued to implement this Act and the following guidelines:

(a) Eligible MSMEs under this Act should be engaged in infrastructure, service
industry, and/or manufacturing business; and

(b) The loans granted hereunder should comply with the applicable prudential
standards and regulations of the BSP.

‘The DBP shall likewise extend loans to local government units (LGUs) subject to existing
rules and regulations.

Section 5. DBP Rediscounting and other Programs. — Subject to applicable prudential standards
and regulations of the Bango Sentral ng Pilipinas (BSP), the DBP may rediscount loans and other
credit accommodations to enterprises enumerated in Section 4(a) of this Act, granted by BSP-
supervised financial institutions (BSFIs), the Small Business Corporation (SBC), and those granted
pursuant to credit programs of the Department of Agriculture-Agricultural Credit Policy Council
(DA-ACPC) to MSMEs affected by the COVID-19 pandemic engaged in infrastructure, service
industry, and/or manufacturing business.

‘The DBP may undertake other similar activities as may be provided under the rules and
regulations to be issued to implement this Act

Section 6. Increase in DBP’s Authorized Capital Stock. — Section 7 of Executive Order No. 81,
as amended by Republic Act No. 8523, otherwise known as “The 1986 Revised Charter of The
Development Bank of The Philippines”. as amended, is hereby further amended to read as follows:

“Section 7. Authorized Capital Stock-Par Value. ‘The capital stock of the Bank shall
be [Fhisty-five—billion pesos —{P35,000,000,000.00)| ONE HUNDRED
BILLION PESOS (PHP100,000,000,000.00) to be divided into [Fhree hundred
fifey-million (350,000,000)| ONE BILLION (1,000,000,000) common shares
with par value of One hundred pesos (PhP100.00) per share, which shall be fully


the-National
million-(125,000,000) common -shares-of stock-worth Twelve billion five hundred

subscribed by the sNational gGovernment: [Lipon-the-effeetivity-of this Charter,
ees ve Meteo i

- . id-] PROVIDED,
THAT THE PRESIDENT OF THE PHILIPPINES MAY APPROVE
‘THE INCREASE IN THE CAPITALIZATION OF THE BANK, UPON
THE RECOMMENDATION OF THE BOARD AND THE
CONCURRENCE OF THE SECRETARY OF FINANCE, UP TO SUCH
AN AMOUNT AS MAY BE NECESSARY TO ATTAIN THE
OBJECTIVES OF THIS CHARTER.”

CHAPTER 2 Land Bank of the Philippines

Section 7. Loan Assistance Program of the Land Bank of the Philippines (LandBank). — ‘The
LandBank shall expand its loan program for qualified MSMEs affected by the COVID-19
pandemic under this Act and those covered under Republic Act No. 11494 or “the Bayanihan to
Recover as One Act”: Provided, That such loans shall be granted in accordance with the rules and
regulations that shall be issued to implement this Act and the following guidelines:

(a) Eligible MSMEs under this Act should be engaged in activities in the agribusiness value
chain; and

(b) The loans granted hereunder should comply with the applicable prudential standards
and regulations of the BSP.

‘The LandBank shall likewise extend loans to LGUs subject to existing rules and
regulations.

Section 8. LandBank Rediscounting and other Programs. — Subject to applicable prudential
standards and regulations of the BSP, the LandBank may rediscount loans to eligible MSMEs
engaged in activities in the agribusiness value chain granted by BSFIs, the SBC, and those granted
pursuant to credit programs of the DA-ACPC to MSMEs affected by the COVID-19 pandemic.

‘The LandBank may undertake other similar activities for purposes of this Act as may be
provided under the implementing rules and regulations to be issued.

CHAPTER 3 Special Holding Company

Section 9. Creation of Investment Vebicle. —'To ensure that Strategically Important Companies
(GICs) remain solvent, the LandBank and DBP are hereby authorized to invest in, or enter into a
joint venture agreement to incorporate a special holding company (the “SHC”) that is a stock
corporation to be organized under Republic Act No. 11232, otherwise known as “The Revised
Corporation Code of the Philippines,” within six (6) months beginning from the date of effectivity
of the rules and regulations of this Act, or effectivity of applicable revenue regulations, whichever


1 comes later. The establishment, administration, and operation of the SHC shall be governed by the

2 following principles:

3

4 (a) The purpose of the SHC is to rehabilitate SIC affected by the COVID-19 pandemic

5 which are experiencing temporary solvency issues;

6

7 (b) SICs are investee companies that are nationally significant, or those with high economic

8 returns or high employment potential, and which are engaged in any of the following

9 “strategically important industries or sectors,” such as, but not limited to, agriculture,
10 construction, education, food industry, healthcare, infrastructure, low-cost and
"1 socialized housing, manufacturing, power and energy, product distributor/retailer,
12 services, tourism and hospitality, transportation and logistics, water and sanitation, and
13 other industries to be identified in the rules and regulations issued to implement this
14 Act: Provided, That a SIC must be able to demonstrate upstream and downstream
15 linkages to other firms and/or industries, substantial employment to the community,
16 and exhibit high degree of process efficiency, cost efficiency, product quality, and
7 environmental soundness: Provided, further, That a SIC can show proof of temporary
18 solvency problems due to the pandemic, financial soundness prior to the pandemic,
19 and credible and sound financial rehabilitation plan.
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a (©) Equity participation in the SHC may be offered to, and held by, qualified private sector
22 investors, including multilateral companies and lending institutions, as may be
23 determined by the LandBank and DBP: Pronided, That majority ownership of the total
24 outstanding capital stock in the SHC shall be held by the LandBank and DBP until
25 such time that they have recovered or will be able to recover their investment in the
26 SHC;
27
28 (4) The LandBank and the DBP shall dispose of their stockholdings in the SHC to
29 qualified private sector investors as they may determine. The LandBank and DBP shall
30 provide equal opportunity for equity participation in the SHC to all qualified investors,
31 including multilateral companies and lending institutions. When private shareholdings
32 in the SHC reaches fifty percent (50%) of the total outstanding capital stock, the
33 stockholders thereof shall cause the adoption and registration with the Securities and
34 Exchange Commission (SEC) of the company’s amended articles of incorporation
35 within three (3) months from such transfer of ownership;
36
37 (©) The SHC, as a government-owned or controlled corporation (GOCC), and the
38 investments of DBP and LandBank therein, shall be subject to the power of the
39 Commission on Audit (COA) to audit and examine GOCCs and the investments of
40 government in corporations: Provided, That the audit of the SHC by the COA shall not
a1 preclude the SHC from engaging the services of a private auditing firm when equity
42 participation in the SHC is offered to qualified private investors: Provided, further, That
43 even if the services of the latter are availed of, the audit report of the COA shall serve
44 as the report for purposes of compliance with audit requirements as required of a
45 GOCC under applicable law;
46
47 (f) ‘The SHC shall devise mechanisms that shall protect the government’s investment, such
48 as issuing a special class or series of shares, or entering into shareholders’ or voting
49 share agreements for the purpose as provided in the rules and regulations issued to
50 implement this Act


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Section 10. Powers ofthe 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 ate experiencing temporary 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 () limited equity participation by subscription
or acquisition of shares, (ii) execution of convertible loans or purchase of convertible
bonds; and/or (ii) investment in such other secutities as may be issued by the investee
corporations, acceptable to the DBP and LandBank; and

(4) The investee company is eligible based on the requirements in this Section and in
Section 13 of this Act.

Section 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;

(©) 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 Board shall be based on the election of the directors by the voting shares held
by the shareholders, pursuant to the provisions of Republic Act No. 11232.

‘The Board shall provide for an organization and staff of officers and employees of the
SHC and fix their remunerations and other emoluments. All positions in the SHC shall be governed
by the compensation, position classification system, and qualification standards approved by the
Board based on a job analysis of actual duties and responsibilities. The compensation plan shall be
comparable with the prevailing compensation plans in the private sector and shall be subject to


CATH HAON=

periodic reviews once every two (2) years, without prejudice to carly merit or increases based on
the SHC’s productivity and profitability. The SHC, being a GOCC, shall therefore be exempt from
existing laws and the rules and regulations on compensation, position classification, and
qualification standards in the government service.

Section 12. Responsibility of the Board and the Employees of the SHC — The Board shall set
appropriate standards and corporate governance for the investee companies that the SHC will
invest in. The Board shall likewise institute mechanisms to oversee that such standards are followed
by the investee company.

‘The general rule and the exception therefrom on the liability of public officers as provided
in Sections 38 and 39 of Chapter 9, Book 1 of the Revised Administrative Code of 1987 shall apply
to the members of the Board and other personnel of the SHC Unless the actions or omissions of
the SHC, members of the Board and its other personnel are finally adjudged to be in wilful violation
of this Act, performed in evident bad faith or with gross negligence, they shall be held free and
harmless to the fullest extent permitted by law from any liability, and they shall be indemnified for
any and all liabilities, losses, claims, demands, damages, deficiencies, costs and expenses of
whatsoever kind and nature that may arise in connection with the exercise of their powers and
performance of their duties and functions.

Section 13. Requirements for the Investee Company. — To be eligible, the investee company must
not be a party to any pending tax-related cases in court for tax collection or tax evasion, must not be
a debtor in any bankruptcy proceeding prior to the enhanced community quarantine period, and
must not be insolvent and is capable of being rehabilitated as determined by the SHC

‘The agreement between the SHC and the investee company must contain the following
minimum conditions:

(a) The investee company must not reduce the number of employees beyond the
percentage prescribed by the SHC;

(b) The investee company shall not, without prior authority from the SHC, be allowed to
issue stock dividends and repurchases during the term of the investment,

(©) 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;

(0) 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.


C©ONOHRON=

Provided, further, That additional conditions and provisions may be imposed by the SHC to
censure that the investment will be properly utilized and ensure the successful rehabilitation of the
investee company.

CHAPTER 4 Incentives and Exemption Privileges of the DBP, LandBank, and the
SHC

Section 14. Tax Exemptions and Fee Privileges. ~ Any existing law to the contrary notwithstanding,
the following shall be exempt from documentary stamp tax, capital gains tax, creditable withholding
income tax, value-added tax, gross receipts tax, and such other taxes that may be imposed under
Republic Act No. 8424, or the “National Internal Revenue Code of 1997,” as amended, whichever is
applicable pursuant to the regulations to be issued by the Department of Finance (DOF), upon the
recommendation of the Bureau of Internal Revenue (BIR):

(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
page) by the borrower or by a third party in favor of the DBP and the LandBank; and

(b) ‘Transactions of the SHC as to its:

(i) subscription or acquisition of shares;

execution of convertible loans or purchase of convertible bonds;

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.

(

‘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);

(b) Fifty percent (50%) of the filing fees for any foreclosure initiated by the DBP and
LandBank in relation to loan assistance and rediscounting programs as prescribed by
the Rules of Court; and

(c) Fifty percent (50%) of the land registration fees prescribed under the existing circulars

of the LRA.

‘The tax exemptions and fee privileges in this Section cannot be enjoyed by any person not
a party to the above transactions except in cases of subsequent transfers by the DBP, LandBank,
or the SHC to a third party of rediscounted loans and other credit accommodations, properties,
shares and other assets, acquired pursuant to the said transactions.

‘The incentives enumerated herein may be availed of for a period of three (3) years from
the date of effectivity of the applicable implementing rules and regulations or of the applicable
revenue regulations, whichever comes later: Provided, That the tax exemption and fee privileges of

7


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subsequent transfers may be availed of for a period of three (3) years from the date of acquisition
by the DBP, LandBank, or the SHC; Pronided, further, ‘That the Secretary of Finance may extend
such period by a maximum of three (3) years: Provided, finally, That once the SHC ceases to be a
GOCC, its tax exemptions and fee privileges under this clause shall be automatically revoked.

Section 15. Emergency Procurement under the Government Procurement Reform Act. — In order to
ensure the expeditious implementation of their mandates under this Act, procurement activiti
undertaken by the LandBank, DBP, and the SHC in light of the COVID-19 pandemic and pursuant
to their mandate and functions as defined in this Act, shall adopt the rules under Negotiated
Procurement under Emergency Cases under Section 53(b) of Republic Act No. 9184, or the
“Government Procurement Reform Act” for a period of three (3) years from the effectivity of the
implementing rules and regulations to be issued under Chapter 5, Section 20 of this Act.

Section 16. Other Exemptions of the SHC — The SHC shall be exempt from the provisions of
Republic Act No. 10149, or the “GOCC Governance Act of 2011.”

Further, transactions by the SHC shall be exempt from the provisions of Republic Act No.
10667, or the “Philippine Competition Act” for a period of three (3) years from its incorporation:
Provided, ‘That this exemption shall only apply to acquisitions of assets of an investee company by
the SHC pursuant to its powers under this Act.

Any provision of law to the contrary notwithstanding, the disposal of assets of an investee
company by the SHC pursuant to their mandate and functions, as well as the disposal of shares,
assets, of investments by LandBank or DBP, or both, in the SHC, shall be exempt from the
provisions of laws and regulations on government disposal of assets.

Section 17. Prohibition Against Injunction, - No court, other than the Court of Appeals and
the Supreme Court, shall issue any temporary restraining order, preliminary injunction, preliminary
mandatory injunction, status quo order, stay order, commencement order, or any other issuance of
injunctive relief against the sale or acquisitions of assets of an investee company by the SHC, or
the disposal of assets of an investee company by the SHC, including judicial or extrajudicial
foreclosure sales or execution sales.

CHAPTER 5 Miscellaneous Provisions

Section 18. Ratias, Ceilings, and Limitations. — For purposes of this Act, the Monetary Board
may exempt DBP and LandBank from such ratios, ceilings and limitations, provided under Republic
Act No. 8791 or the “he General Banking Law of 2000,” for a period as may be determined by the
Monetary Board, subject to conditions as may be prescribed by the Monetary Board such as, but not
limited to, the adoption of appropriate risk management measures to mitigate risks that may arise from
the implementation of this law.

Section 19. Appropriations. — The amount of ‘Ten Billion Pesos (PhP10,000,000,000.00) is
hereby appropriated out of any funds actually available in the National Treasury of the Philippines not
otherwise appropriated, as certified by the National Treasurer, to fund the following:

(a) The amount of Two Billion Five Hundred Million Pesos (PhP2,500,000,000.00) for the
implementation of Chapters 1 and 3 of this Act: Provided, That this amount shall be applied as
additional paid-up capital of the DBP, for the purposes of lending under the loan assistance program

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to qualified MSMEs, its rediscounting and other programs, and the creation of the SHC: Provided,
_furtber, That DBP can also utilize funds appropriated under Section 10 of Republic Act No. 11494 or
“the Bayanihan to Recover as One Act” for the implementation of Chapter 1 of this Act; Provided,
finally, That the total amount of PhP2,500,000,000.00 can be fully utilized, if required, for the equity
infusion in the SHC; and

(b) The amount of Seven Billion Five Hundred Million Pesos (PhP7,500,000,000.00) for
the implementation of Chapters 2 and 3 of this Act: Provided, That this amount shall be applied as.
additional paid-up capital of LandBank, for the purposes of lending under the loan assistance
program to qualified MSMEs, rediscounting and other programs of LandBank, and the creation of
the SHC: Provided further, That LBP can also utilize funds appropriated under Section 10 of Republic
Act No. 11494 or “the Bayanihan to Recover as One Act” for the implementation of Chapter 2 of
this Act; Pronided, finally, That the total amount of PhP7,500,000,000.00 can be fully utilized, if
required, for the equity infusion in the SHC;

Section 20. Implementing Rules and Regulations — Within thirty (30) days from the effectivity of
this Act, the DOF, together with the BIR, the BSP, the SEC, the DBP, and the LandBank shall jointly
promulgate the necessary rules and regulations for the effective implementation of this Act: Provided,
‘That the DOF may call upon any agency to provide information or assistance in the drafting of the
rules and regulations: Provided, further, That within thirty (30) days from the effectivity of this Act, the
DOF, upon recommendation of the BIR, shall promulgate the revenue regulations implementing the
fiscal incentives under this Act.

Section 21. Oversight Committee. —'There is hereby created a Joint Congressional Oversight
Committee (JCOO) to oversee, monitor, and evaluate the implementation of this Act. The JCOC
shall be composed of five (5) members each from the House of Representatives and from the
Senate. The JCOC shall be co-chaired by the Chairpersons of the House Committee on Banks and
Financial Intermediaries and the Senate Committee on Banks, Financial Institutions and
Currencies.

‘The Speaker and the Senate President shall designate the other four members of the JCOC
of the House and the Senate from among the members of the House Committee on Banks and
Financial Intermediaries and the Senate Committee on Banks, Financial Institutions, and
Currencies, at least one member of which shall be from the minority.

Section 22. Separability Clause. — 1f any provision of this Act is held unconstitutional or
invalid, all other provisions not affected thereby shall remain valid.

Section 23. Repealing Clause. — All laws, decrees, executive orders, rules and regulations or
parts thereof, which are inconsistent with this Act, are hereby repealed, amended or modified
accordingly.

Section 24. Effectiity. This Act shall take effect immediately upon its publication in the
Official Gazette or in a newspaper of general circulation.

Approved