FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 648 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Undeniably, the contribution of Filipino overseas workers in the country's 
thrust for economic recovery has proven to be both vital and indispensable. 
Since the 1970s, labor export has been regarded by the national government as 
a means to address the nation's twin problems of unemployment and chronic 
balance of payment deficits. In fact, not only have jobs in the country been made 
available to those that remained a part of the domestic labor force, but more 
importantly, the remittances of Filipino overseas workers have become the 
country's single biggest source of foreign exchange. 
Hailed as modern day heroes, Filipino overseas workers have been 
considered as one of the major forces in the labor front today. Considering their 
number, which is estimated at close to 1.5 million, excluding workers who have 
acquired immigrant status in their host countries, they have greatly influenced 
government policies geared towards promoting and protecting their rights, 
welfare and interests. 
These notwithstanding, however, the collective potentials of Filipino 
overseas workers have yet to be fully harnessed and utilized. While laudable, the 
programs of the government have been focused mainly in the areas providing 
welfare protection to Filipino overseas workers and encouraging them to 
continually remit their foreign exchange earnings through the grant of certain 
incentives. In the area of investment, the government has only the establishment 
of the Overseas Workers Investment Fund to offer for the overseas workers to 
venture upon. 
To say the least, this bill seeks to further enhance the investment 
potentials of overseas workers while at the same time aims to address their 
various financial needs and concerns. It provides for the establishment of a 
banking institution for Filipino overseas workers, to be known as the Philippine 
Overseas Workers Bank, to augment their income-generation capabilities as 
investors thereof. Added to this, it enjoins the government to provide necessary 
financial assistance that will tremendously sustain the viability of the proposed 
Bank. 
As previously mentioned, there are reportedly about 1.5 million Filipino 
overseas workers in more than 120 countries. The Middle East accounts for half 
a million of them. Western Europe has about 400,000 Filipino workers and the 
Asia Pacific region is host to more than 600,000, including some 300,000, mostly 


refugees, in Sabah. With their huge number, a minimum investment of One 
Thousand Pesos (PI ,000.00) from each of them with easy terms of payment will 
certainly generate a substantial amount of capitalization. This capital infusion, to 
say the least, would be a great boost to the country's sorry economic plight. 
It is about time that the overseas workers be provided with a bank that 
they can call their own; effectively run and managed by people within their ranks 
and which is expected to be operated for their greater good and benefit. This 
augers well for our so-called modern day heroes which will surely give them the 
added aspiration to work even harder in the foreign countries they now consider 
as the places of their "bread and honey". But more importantly, it is a fitting 
recognition of their contribution in the long and arduous task at nation building. 
In this light, the passage of this bill is fervently prayed. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 
G 4 8 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
CREATING THE PHILIPPINE OVERSEAS WORKERS BANK, AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Overseas Workers Bank. - There is hereby created a bank 
to be known as "Philippine Overseas Workers Bank'; herein referred to as the 
"Bank. " 
SEC. 2. Place of Business; Branches; Agencies and Other Offices. -
The Bank's principal office and place of business shall be in the National Capital 
Region, also known as Metro Manila. It may open and maintain other branches, 
agencies, and offices at such places in the Philippines or abroad as its Board of 
Directors may deem advisable, with prior approval of the Monetary Board of the 
Bangko Sentral ng Pilipinas. 
SEC. 3. Corporate Powers and Functions. - The Bank shall be a 
corporate, body and shall have the following powers and purposes: 
a: To grant loans and other financial assistance preferably to Filipino 
overseas workers, their spouses, or compulsory heirs, for the development of 
agriculture and small and medium scale commercial and industrial enterprises; 
b. To grant loans and other financial assistance to Filipino workers 
applying or re-applying for overseas employment to defray the payment of 
placement fees and other expenses thereof; 
c. To enter into agreements or contract for such services and aid, as may 
be needed for the proper, efficient, and stable administration of the Bank; 
d. To accept and administer trust and to carry on a general trust business; 
e. To acquire property, real or personal, which may be necessary or 
expedient for the proper conduct of its operations; 
f. To acquire, receive or hold, by way of purchase or otherwise, public or 
private property for the purpose of undertaking housing projects preferably for the 
benefit of Filipino overseas workers, their spouses or compulsory heirs. 


g. To receive deposits and accept property, real or personal, as collateral 
or security; and 
h. To adopt, amend or change its by-laws; to adopt, alter and use a seal; 
to sue and be sued, and to exercise the general powers of a corporation as 
provided in Batas Pambansa Big. 68, otherwise known as the "Corporation Code 
of the Philippines" and the powers of a bank of its category under the General 
Banking Act. 
SEC. 4. Determination of Overseas Workers. - For purposes of this Act, 
the overseas workers referred to herein shall include any person or persons who 
have served or serving as employees or workers outside the Philippines under 
valid employment contracts involving rendering of services in a foreign country, 
such as ,skilled and unskilled laborers, office, factory or household workers, or 
professional employees, which shall include seamen and/or workers on board 
vessels plying international waters, name hires, and other similar workers. 
SEC. 5. Authorized Capital Stock. -The capital stock of the Bank shall 
be Two Billion Pesos (P2,000,000,000.00) divided into two million (2,000,000) 
shares with a par value of One Thousand Pesos (P1 ,000.00) per fifty one percent 
(51%) share of the total shares provided herein, or one billion one hundred 
million (1,100,000,000) shall be common shares, while the remaining forty nine 
percent (49%) or nine hundred million (900,000,000) shares shall be preferred, 
The government of the Republic of the Philippines shall, in behalf of the 
overseas coritract workers, fully subscribe total common shares of the Bank. The 
amount necessary for the government's subscription shall be advanced from the 
Overseas Workers Welfare Administration (OWWA); Provided, That the National 
Government shall, within the period of three (3) years, return to OWWA the 
amount hereinbefore required; Provided further, That the OWWA shall hold and 
represent the shares corresponding to the amount it has advanced until it has 
been fully reimbursed the sale of the stocks subscribed by the National 
Government in favor of the overseas contract workers. 
SEC. 6. Authorized Loans and Investments. - In the exercise of its 
lending authority, the Bank shall give preference and priority to loan for 
agricultural and small and medium scale commercial and industrial enterprises, 
particularly for overseas workers, their spouses and compulsory heirs. 
Unless otherwise provided 
in this Act, 
loans and 
other credit 
accommodation granted by the Bank shall be subject to the single appropriate 
applicable loan limits to any single borrower as provided under Republic Act No. 
337, as amended, otherwise known as the General Banking Act. The authority of 
the Bank to invest in equities of allied undertakings, financial or non-financial, as 
well as in non-allied undertakings, shall be governed by the provisions of 
Republic Act 337, as amended. 
SEC 7. Board of Directors; Composition; Tenure; Diems. -Within the 
first three (3) years from the organization of the Bank, its affairs and business 
shall be directed, its properties managed and preserved, and its corporate 
powers and functions exercised, unless otherwise provided in this Act, by a 
Board o(Directors consisting eleven (11 ) members, composed of the Secretary 
of Labor and Employment as Ex-Officio Chairman, and the respective 
Chairpersons of the Committee on Labor of the Senate and the House of 
Representatives, the Administrators of the Philippine Overseas Employment 
Administration (POEA) and the Overseas Workers Welfare Administration 
(OWA), as Ex-Officio Members. The remaining six (6) members shall be selected 


from the officers and members of the different overseas workers' associations 
and be appointed by the President of the Republic of the Philippines; Provided, 
That at least one (1) member shall be an ordinary overseas worker and at least 
one (1) member each shall come from Visayas and Mindanao. Thereafter, the 
Members of the Board of Directors shall be elected in accordance with the 
succeeding Section. 
SEC. 8. Election and Qualifications of Members of the Board of 
Directors. - Annually on the first Tuesday of March after the transition period of 
three (3) years mentioned in this Act, the stockholders shall meet to elect the 
members of the Board of Directors for the current year. Each stockholder or 
proxy will be entitled to as many votes as he may have shares of stock registered 
in his name held be him one (1) week prior to the date of the election multiplied 
by the number of directors to be elected. In the election of the members of the 
Board, stockholders shall have the right of cumulative voting as recognized by 
law. 
No person shall be elected director of the Bank unless he is a natural-born 
citizen of the Philippines, not less than thirty-five (35) years of age, of good moral 
character and has attainted proficiency, expertise and recognized competence in 
one (1) or more of the following: overseas employment promotions and 
recruitment, banking, finance, economics, or business management; Provided, 
That no director, officer or employee of any other bank shall be eligible as 
members of the Board of Directors; Provided further, That no less than six (6) of 
the members thereof are overseas workers. 
Unless otherwise set by the Board, members of the Board shall receive a 
per diem allowance of One Thousand Pesos (P1 ,000.00) for every meeting of the 
Board actually attended by them; Provided finally, That the total amount of per 
diems for' every single month shall not exceed the sum of Six Thousand Pesos 
(P6,000.00). 
The Board of Directors shall, by a majority of all its members, elect its 
Chairman, Vice-chairman and other officers. Pending the election of its 
Chairman, the President of the Bank shall preside over the meetings of the Board 
of Directors. 
SEC. 9. Powers of the Board of Directors. - The Board of Directors shall 
have the following duties, powers and authority: 
a) formulate policies necessary to carry out, effectively the provisions of 
this Act; 
b) to adopt, amend or change the by-laws as well as such rules and 
regulations as may be necessary for the effective operation of the Bank, in 
conformity with this Act and existing laws; 
c) to prescribe such terms and conditions to govern the granting of loans 
and credits consistent with the provisions of this Act; 
d) to adopt annual budget for the effective operation and administration of 
the Bank; 
e) to create, establish and operate a "Self Insurance System" in order to 
offset possible damage or loss of cash in-transit that the Bank may suffer 
which may arise, among others, from irregular transfers and similar 
instruments, or losses arising from other forms of fraud; 
f) to compromise or release, in whole or in part, any claim, liability or 
demand for or against the Bank regardless of the amount involved, under 
such terms and conditions as it may impose to protect the interest of the 
Bank; 


g) to determine the procedure and requirements for the acquisition of 
properties necessary for the business of the Bank; 
h) to dispose of properties of the Bank, whether used in the conduct of its 
business or acquired as a result of its banking operations and 
negotiations; 
i) to provide for the appointment and removal, as well as fix reasonable 
compensation, of its personnel in accordance with existing laws; 
j) to create and establish a Provident Fund for the benefit of its officers or 
employees under such terms and conditions as the Board of Directors 
may determine; and 
k) to perform such other functions as may be necessary to achieve the 
objectives of this Act. 
The Board shall meet as frequently as necessary and the presence of five 
(5) members shall constitute a quorum. 
SEC.10. President of the Bank. -The Chief Executive Officer of the Bank 
shall be the President who shall be elected by the Board of Directors from among 
themselves. No person shall be elected President of the Bank unless he is at 
least forty (40) years of age, of good moral character and reputation, with at least 
ten (10) years of previous experience in banking, has a reputed proficiency, 
expertise and recognized competence in banking or financial management, and 
must have had experience as an overseas worker. 
The President of the Bank shall, among other powers and duties, execute 
and administer the policies, measures, orders and resolutions approved by the 
Board of Directors, and direct and supervise the operations and administration of 
the Bank. Particularly, he shall have the power and duty: 
a) to execute all contracts and to enter into all authorized transactions in 
behalf of the Bank; 
b) to exercise, as Chief Executive Officer, the power of supervision and 
control over decisions or actions on officers and subordinates, and all 
other powers that may be granted by the Board; 
c) to recommend to the Board the appointment, promotion, or removal of all 
officers of the Bank with the rank of at least Vice- President; 
d) to appoint, promote or remove employees and officers below the rank of 
Vice-president; 
e) to transfer or re-assign officers or personnel of the Bank in the interest of 
service; 
f) to report periodically to the Board of Directors the operations of the Bank; 
and to delegate any of his powers, duties or functions to any officials of 
the Bank, with the approval of the Board of Directors. 
SEC. 11. Other Officers and Employees. - The Board of Directors shall 
provide for an organization of staff, officers and employees of the Bank and upon 
recommendation of the President of the Bank, fix their remuneration and other 
emoluments in accordance with existing laws. 
No officer or employee of the Bank subject to Civil Service shall be dismissed 
or suspended except as provided by law. 


SEC. 12. Legal Matters and Cases. - The Bank shall have its own Legal 
Department, the head of which shall be appointed by the Board of Directors of 
the Bank upon the recommendation of the President of the Bank. 
The Bank may, subject to court approval, deputize any of its legal staff to act 
as Special Sheriff in the enforcement of court write and processes in cases 
involving the Bank. 
SEC. 13. Bank Auditor. - The Commission on Audit shall be ex-officio 
auditor of the Bank and shall deSignate a representative to the Bank. 
SEC. 14. Examination of the Bank. - The Bank shall be subject to 
supervision and examination by the appropriate department of the Bangko 
Sentral ng Pilipinas. 
SEC. 15. Inhibition from Board Meeting of Member with Personal 
Interest. -Whenever any member attending a meeting of the Board of Directors 
has a personal interest, directly or indirectly in any given matter pending before 
the Board, said member shall not participate in the discussion or resolution of the 
matter and must retire from the meeting during the deliberation thereon. 
SEC. 16. Prohibition on Officers and Employees of the Bank. - Except 
as required by law, or upon order of a court of competent jurisdiction, or express 
order of the President of the Philippines, or written permission of the client, no 
officer OJ employee of the Bank shall reveal to, nor allow to be examined, 
inquired or looked into by any third person, government official, bureau or office, 
any information relative to details on individual accounts or specific banking 
transactions; Provided, That in respect to deposit of whatever nature, the 
provisions of any existing laws shall apply. 
This provision shall not apply to the exchange of confidential credit 
information among government financial institutions or among banks, in 
accordance with established banking practices or as may be allowed by law. 
SEC 17. Borrowing of Directors, Officers, and Employees. - No 
Director, officer or employee of the Bank or any corporation, partnership or 
company wherein any member of the Board of Directors, officer or employee, 
and/or their relatives within the second degree of consanguinity or affinity, is a 
director, officer, or controlling shareholder, shall other directly or indirectly, for 
himself or as representative or agent of others, borrow any of the deposits of 
funds from the Bank, nor shall he become a guarantor, endorser or surety for 
loans from the Bank to others, or in any manner be an obligator for money 
borrowed from the Bank or loaned by it; Provided, That this prohibition on 
directors, officers and employees shall not be included in the form of fringe 
benefits granted in accordance with the rules and regulations as may be 
prescribed by the Monetary Board of the Bangko Sentral ng Pilipinas. 
The Bank shall not grant, directly or indirectly, any loans or credit 
accommodations to the head or any officer or personnel directly exercising 
supervisory or regulatory authority over the activities of the Bank such as those 
of the Bangko Sentral ng Pilipinas or Commission on Audit. 
SEC. 18. Disposal of Real Estate and other Properties. - Real and 
other properties acquired by the Bank in the collection of debts, receivables or by 
way of foreclosure or other means, shall be sold or otherwise disposed of in 
accordance with the policies and guidelines by the Board of Directors within three 
(3) years after the date of their acquisition. 


SEC 19. Right of Redemption of Foreclosed Property and Possession 
During tHe Redemption Period. -Within one (1) year from the registration of the 
foreclosure or sale of real property, the mortgagor shall have the right to redeem 
the property by paying the principal, interest. charges, commissions and all 
claims of whatever nature of Bank outstanding and due as of the date of the sale 
including all the cost and other expenses incurred by reason of the foreclosure, 
sale and custody of the property, as well as charges and accrued interests. 
The Bank may take possession of the foreclosed property during the 
redemption period. When the Bank takes possession during such period, it shall 
be entitled to the fruits of property with no obligation to account for the same 
compensation being considered for the interest that would otherwise accrue on 
the account. Neither the Bank be obliged to post a bond for the purpose of such 
possession. 
SEC. 20. Depository of Overseas Workers' Funds. - The provisions of 
the existing laws to the contrary notwithstanding, the Bank shall act as official 
government depository with authority to maintain government, particularly with 
respect to fund intended for or due to overseas workers, subject to rules and 
regulations as the Monetary Board of the Bangko Sentral ng Pilipinas may 
prescribe. 
SEC. 21. Tax and Duty Exemptions. - The Bank shall be exempted from 
the payment of all kinds of taxes and duties imposed by the government, or any 
subdivision, agency or instrumentality thereof, on any of its income, real or 
personal property acquisitions, or importation of equipment, machinery and other 
items be needed in its operations, within a period of five (5) years from the date 
of the establishment of the Bank. 
SEC. 22. Term. - The legal existence of the Bank under this Act shall be 
for a period of fifty (50) years from and affer the date of the effectivity of this Act. 
SEC. 23. Articles of Incorporation and Charter. - This Act, upon its 
effectivity, shall be deemed and accepted for all legal intents and purposes as 
the statutory articles of incorporation or charter of the Philippine Overseas 
Workers Bank. Pursuant thereto, the Bank shall be deemed registered and duly 
authorized to do business and operate as a commercial bank as of the date of 
effectivity of this Act. 
Se.C. 24. By-Laws. - The By-Laws of the Bank for its organizational, 
functional and operational government and procedures shall be adopted by the 
affirmatilie vote of the stockholders representing a majority of all the subscribed 
capital' stock and entitled to vote, whether paid or unpaid, within one (1) month 
after the effectivity of this Act. The said By-Laws shall be subject to certifications 
by the Monetary Board pursuant to provisions of Republic Act No. 337, as 
amended. 
SEC. 25. Penalties. - Any director, officer or employee of the Bank who 
violates or knowingly permits the violation and any person aiding or abetting any 
violators of any of the provisions of this Act shall be punished by a find not to 
exceed Ten Thousand Pesos (P10,000.00) or by imprisonment of not more than 
five (5) years, or both fine and imprisonment upon the discretion of the court. 
SEC. 26. Separability Clause. - If any provision or part of this Act, or the 
application thereof to any person, association or circumstances is held invalid, 
the other pertinent application to such person, association or circumstances shall 
not be affected thereby. 


• 
SEC. 27. Repealing Clause. - All laws, decrees, executive orders, 
proclamations, rules and regulations or parts thereof inconsistent with any of the 
provisions of this Act are hereby repealed or modified accordingly. 
SEC. 28. Effectivity. - This Act shall take effect fifteen (15) days from its 
publication in the Official Gazette or in a newspaper of general circulation. 
Approved,