? RECEIVED

ies

Republic of the Philippines EF up VUL DP Bid

House of Representatives
Quezon City

EIGHTEENTH CONGRESS.
First Regular Session

1841
House Bill No.

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

E

PLANATORY NOTE

According to the Asian Development Bank (ADB), Islamic financing is one of the fastest growing
seyments of international finance in the world. The Islamic finance industry's total worth across

three main sectors (banking, capital markets, and takafiu/) was estimated at $1.89 trillion in 2016
and global Islamic finance assets are forecast to reach $3.5 trillion by 2021

Islamic banking and finance involves a kind of financing operations that is characterized by risk-
sharing and equitable distribution of wealth. In compliance with the Shari'ah or Islamic law, the
v of interest or a fixed pre-detern

ned rate of return are prohibited

ADB notes that the Philippines was one of the first Muslim-minority countries to recognize the
Importance of Islamic finance. In 1973, the Philippine Amanah Bank was established to address
the pressing need to expand the banking and credit system in Mindanao, where a majority of the
country’s Muslim population resides

Unfortunately, the Philippines currently has an inadequate legal and regulatory framework for
Islamic finance This has stowed development of Islamic finance in the country. The Amanah
Bank, which is currently the only Islamic bank, has faced severe operational challenges because
of the inadequate legal and regulatory framework, and Islamic finance-related capacity constraints
such as lack of technical capability, undereapitalization, and lack of Islamic liquidity management
and investment avenues

Efforts by Asian governments, including the Philippines, to support and develop their domestic
Islamic financial services industries ai to support the growing number of entrepreneurs among
their Muslim populations. The lack of effective access to responsive financing is one of the main
challenges to the growth and development of micro, small and medium enterprises (MSMEs) in
the Philippines. ‘This obstacle is doubly experienced by our Filipino Muslim entrepreneurs in the

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ARMM/Bangsamoro region and in different parts of the country with the absence of banking and
financial services that are compliant with the principles of Shari'ah or Islamic law. Conventional
banking has been slow to expand in the ARMM, where a majority of the country’s Muslim
population resides,

This Bill seeks to promote the development of Islamic finance in the Philippines, and to promote
financial inclusion, especially among those who choose to remain unbanked for religious

reasons

Urgent approval of this bill is earnestly sought

P, AUFREDNARGAS
Fifth District, Quezon City


Republic of the Philippines
House of Representatives
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

1641

House Bill No.

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

AN ACT
STRENGTHENING THE AL-AMANAH ISLAMIC BANK

Be it enacted by the Senate and the House o f Representatives. 0 f the Philippines in
Congress assembled.

Section 1. /it/e. - This Act shall be known and cited as the Al-Amanah Islamic Bank of
the Philippines Act.

Section 2. )eclaration of Policy. - The State, in Section 20, Article II of the Constitution,
encourages private enterprise and provides incentives to needed investments, Further, the
Constitution demands that the use of property bears a social function so that the consequences in
law must also be defined by policy objectives related to property rights in productive enterprises.
Toward this end, the Government, recognizing the role of Filipino-Muslim communities in nation
building by allowing them to freely participate in financing and investments in accordance with
the requirements of their religion, has committed itself to the establishment of an Islamic bank
Which shall operate within a legal framework that will permit its investors or participants the rights
to equitable and beneficial share in the fruits realized from financing productive activities and
other operations

Section 3. Name, Domicile, and Place of Business. - There is hereby created the Al-
Amanah Islamic Investment Bank of the Philippines, which shall also be known and called as the
Al-Amanah Islamic Bank or the "AIB", Its principal domicile and place of business shall be in
Zamboanga City. Philippines

Section 4. Definition of Terms. For the purposes of this Act, the following terms shall be
defined as follows:

(a) A IB means the Al-Amanah Islamic Bank created under this Act and referred to as
either "the ALB" or "the Bank”


(b) Islamic banking business means banking business which conducts its transactions in
accordance with the principles of Shari'ah, and whose aims and operations do not involve interest
{riba), uncertainty in subject matter and contractual term {gharar), and gambling {maysif) which

are prohibited by the Islamic Shari'ah principle;

(c) Sharvah pertains to the meaning assi

ned to it by Islamic law and jurisprudence as
expounded by authoritative sources. In the context of this Act, it is construed by reference to
pertinent Quranic ordinances and applicable rules in Islamic jurisprudence on business
transactions,

(d) Riba refers to the meaning assigned to it by Islamic law and jurisprudence as expounded
by authoritative sources. In the context of banking activities, the term includes the receipt and
payment of interest in the various types of lending and borrowing and in the exchange of currencies
on forward basis,

(e) Zakat relates to the meaning assigned to it by Islamic law and jurisprudence as
expounded by authoritative sources. In the context of this Act, it represents an annual "ithd '
payable by the Bank on behalf of its shareholders and investors in compliance with Islamic
Shani‘ah’s principles.

(f) Current account liabilities, in relation to Islamic banking services, means the total
leposits at the bank which are repayable on demand:

(a) Savings account liabilities, in relation to Islamic banking services, means the total
deposits at the Islamic Bank which normally require the presentation of passbooks or such other
legally acceptable documents in lieu of passbooks as approved by the Bangko Sentral ng Pilipinas
for deposit or withdrawal of

noney.

(h) Investinent account liabilities, in relation to Islamic banking services, means the total
deposit liabilities of the AIB relative to funds placed by a depositor in the bank for a fixed period
of time under an agreement to share the profits and losses of the bank in the investment of such
funds,

(i) Other deposit liabilities means the deposit liabilities at that bank other than savings
account, investment account, current account liabilities and deposit liabilities from any other
licensed bank,

(j) Participation, in relation to Islamic banking and commercial operations, means any
agreement or arrangement under which the mode of joint investments or specific transactions shall
not involve the element of interest charge other than as percentage share in profits and losses of
business,

(k) Share means share in the capital of the Bank and includes a stock, except where a
distinction between stock and share is expressed or implied:


(1) Mudarabah refers to the partnership contract between the capital provider and an
entrepreneur {mudarib) whereby the capital provider would contribute capital to an enterprise or
activity that is to be managed by the entrepreneur, Profits generated by that enterprise or activity
are shared in accordance with the percentage agreed by the parties in the contract, while losses are
to be borne solely by the capital provider unless the losses are due to misconduct, negligence, or
breach of contracted terms by the entrepreneur

(im) Musharaka refers to a partnership contract or joint venture agreement in which the
partners agree to contribute capital to an enterprise, whether existing or new. Profits generated by
that enterprise are shared in accordance with the percentage specified in the musharakah contract,
while losses are shared in proportion to each partner's share of capital;

(n) Takatul refers to a Shari'ah-compliant insurance mechanism employing, among others,
mutual guarantee in return for the commitment to donate an amount in the form of a specified
contribution to the participants’ risk fund, whereby a group of participants agree among themselves
to support one another jointly for the losses arising from specified risks:

(0) Haram is an Arabi

term meaning "forbidden" or anything that is prohibited by the
faith.

(p) Halal is an Arabic word, opposite of haram, meaning lawful or permitted;

(q) Sukuk refer to certificates that represent a proportional undivided ownership right in
tangible assets, or a pool of tangible assets and other types of assets. These assets could be ina
specific project or specific investment activity that is Sharfah-compliant.

(1) Ithe refers to amount payable or to be paid by every Muslim as part of his/her spiritual
obligation to share what are excesses or as may be dependent on the amount of money or assets an
individual possesses.

Section 5. Purpose and Basis. - The primary purpose of establishing and institutionalizing
the AIB shall be to promote and accelerate the socio-economic development of the nation by
performing banking, financing, and investment operations and by establishing and participating in
agricultural, commercial, and industrial ventures, in accordance with the precepts and principles
of Islam. All business dealings and activities of the AIB shall be subject to the basic principles and
rulings of Shari'ah aligned with Section 2 of this Act

Section 6. The Powers o f the AIB. - The AIB, upon its organization, shall be a 2 body
corporate and shall have the following powers:

(a) To preseribe its b

laws and operation policies,
(b) To adopt, alter, and use a corporate seal;

(c) To enter into and deliver contracts, and to sue and be sued;


(d) ‘To borrow money, own real or personal property and

ntroduce 7 improvements
thereon, and to sell, mortgage, or otherwise dispose of the 8 same;

(c) To employ such officers and personnel, preferably from the Muslim sector, 10 as may
be necessary to carry out Islamic banking business,

(1) To establish such branches and agencies in provinces a
particularly wh

id cities in the 12 Philippines
Muslims are predominantly located. and such 13 other offices in other areas in
the country or abroad as may be necessary to 14 carry out its Islamic banking business;

(y) To perform Islamic banking and finance services:

(h) With the prior approval of the Monetary Board of the Bangko Sentral ng Pilipinas, to
stinent participation certificates, sukuk, and other Shari'ah compliant funding
instruments to be used by the Bank in its operations or capital notes;

(i) To invest in equities of the following allied undertakings: (i) Warehousing companies;
(iii) Storage companies; (iv) Safe deposit box companies; (v) Companies
engaged in the management of mutual funds but not in the mutual funds themselves; and (vi) Such
other similar activities as the Monetary Board of the Bangko Sentral ng Pilipinas has declared or
may declare as appropriate from 30 time to time, subject to existing limitations imposed by law

\)) With the prior approval of the Monetary Board of the Bangko Sentral ng Pilipinas, 10
invest in equities of the Shari'ah compliant undertakings that directly support the delivery of
Islamic banking and finaneing services:

(k) To act as an official depository of the government, its branches, subdiv
{rumentalities, including government owned or controlled 36 corporatio
doing business in the autonomous region

ions, and
s, particularly those

(1) The AIB shall exercise all the powers and perform all the services of a bank as may be
allowed by the Bangko Sentral ng Pilipinas, except as otherwise prohibited by this Act;

(m) Notwithstanding any provisions of law to the contrary, the AIB is hereby authorized
{o operate an Investment House pursuant to Presidential Decree (PD) No. 129, as amended, and as
a Venture Capital Corporation, pursuant to Presidential Decree (PD) No. 1688 and, by virtue
thereof, carry on the following types of commercial operations: (i) The AIB may have a direct
interest as a shareholder, partner, owner or in any other capacity as may be allowed by law in any
commercial, industrial, agricultural, real estate, or development project under a mudarabah form
of partnership or a musharaka joint venture agreement, or otherwise invest or divest under any of
the various contemporary Iskumic financing techniques or modes of investment for profit sharing;
(ii) The AIB may carry on commercial operations for the purpose of realizing its investment
banking objectives by establishing enterprises or financing existing enterprises, or otherwise by
participating in any way with other companies, institutions or banks performing activities similar



to its own or which may help accomplish its objectives in the Philippines or abroad, under any of
the contemporary Islamic financing techniques or modes of investment for profit sharing; and (iii)
The AIB may perform all business ventures and transactions as may be necessary to carry out the
objectives of its mandate within the framework of the Bank's financial capabilities and technical
jerations prescribed by law, customs or practice: Provided, that these shall not involve any
riba or other activities prohibited by the Islamic Shari'ah principles

consi

(n) To exercise all the neces

ry and incidental powers pursuant to this Act, as well as such
powers mentioned in the Corporation Code of the Philippines and the General Banking Law
insofar as they are not inconsistent or incompatible with the provisions of this Act. 34

Section 7, Authorized Capital Stock. - The authorized capital stock of the AIB shall be
Ten Billion Pesos (Php10,000,000,000.00) divided into one hundred million shares with a par value
of one hundred pesos each. Provided, that sixty million shares thereof shall be subscribed and paid
by the National Government through the Bangsamoro Autonomous Region pursuant to Section 6,
paragraphs ¢) and k), 39 Article XII of Republic Act (RA) No. 11054, Provided further that, such
paid up capital shall be automatically infused to the Bank immediately after the effectivity of 41
this Act

Section 8 Clasyification o f Shares. - The Bank's authorized capital stock shall have the
following classifications and features in relation to its Islamie banking operations: (a) Series “VI”
shares shall be comprised of sixty million shares equivalent to six 5 billion pesos to be subscribed
and paid by the National Government through the Bangsamoro Autonomous Region. (b) Series
"S" shall be comprised of ten million shares equivalent to one billion pesos to be made available
for subscription by Filipino individuals and institutions. (c) Series "C" shares shall be comprised
of thirty million shares equivalent to three billion pesos to be made available for subscription by
Filipino and foreign individuals and/or institutions or entities, Anyone of the shareholders may
exercise the pre-emptive right to consolidate ownership of the outstanding shares as hereinafter
increased: Provided, that the common shares of the AIB which have been issued and outstanding
shall form part of its increased capitalization, subject to the concurrence of its existing
shareholders. The AIB is authorized to reacquire its common shares that are held privately. The
AIB may take the necessary steps to have its Series "and Series "C" shares listed in any duly

registered stock exchange

Section 9, Board 0 f Directors, Subject to Section 13 of this Act, the Board of Directors
composed of nine (9) members duly elected by the shareholders at the General Shareholders
Meeting, as provided for in Section 12 of this Act, shall convene at the principal office at least
once every three (3) months upon due notice by the Chairman or, whenever the need arises, upon
the request of three (3) members of the Board of Directors. The Board may convene outside the
Islamic Bank's principal office as the members shall determine in the by-laws of the Islamic Bank

Section 10. Powers of the Board. - The Board of Directors shall be the governing body of
AIB, except on such matters expressly reserved by the shareholders at the general shareholders


meeting ‘The Board shall adopt policy guidelines for the management and operations of the AIB.
It shall likewise formulate the internal rules and regulations necessary and incidental to the conduct
of the bank's business, expenditures, and all administrative matters such as office duties and
functions, personnel organization, salaries, and other incentives and emoluments as authorized and
prescribed by applicable laws. The Board of Directors shall have the power to appoint or delegate
the appointment of the AIB’s officers and personnel, hire and authorize agents, legal
representatives and technical consultants, subject to prevailing laws and rules and regulations as
may be prescribed by the Commission on Audit and the Civil Service Commission, The Board
shall cause the preparation of the MB's financial statements according to generally accepted
accounting principles established and appropriate for Islamic banking. Copies of the audited
financial statements shall be provided to the 4 shareholders before the date of the general meeting,
The Board is authorized to establish a personnel welfare fund for the benefit of all officers and
permanent employees of the Bank, Members of the Board may likewise enrol in said welfare fund;
Provided, that they are not appointed to the governing 8 board or become officers or personnel of
the Personnel Provident Fund ("PPE") and that they may avail of the benefits or product under the
PPE only proportionate to their enrollment and contribution; Provided, that the AIB does not share
in their monthly contributions. The Board is likewise authorized to adopt policies for the training
and development of the AIB’s human resource by granting. among others, incentives to defray the
costs of study and training at home or abroad of outstanding employees of the AIB.

Section I. Shari'ah Advisory Council (SAC); Creation, Composttion, 16 Qualification,
Hlecuon, Term, Functions, and Limuations. - To ensure its compliance with Shari'ah principles,
the AIB shall constitute a Shari'ah Advisory Council ("SAC") composed of not more than five (5)
but not less than three (3) members. A- minimum qualification requirements, all persons to be
appointed as members of the SAC must be Islamic scholars and jurists of Islamic comparative
law and majority of whom must be degree holders or have at least a three (3) year work experience
vn Islamic banking and finance. The members shall be elected for a term of not more than three (3)
yeral shareholders meeting from the list of nominees submitted by the Board. The AIB
shall include in its by-laws the internal procedures, limitations, detailed functions, and relevant
framework for the SAC. The SAC shall give advice and undertake reviews pertaining to the
application of Islamic principles and Shari'ah rulings on the AIB's mandate, and operations and
management as an Islamie bank. Any or all of the members of the SAC may be invited by the
Board in any of its meetings for opinion and advisory

years ata

Section 12. Meetings. -The general shareholders meeting shall convene annually and
within six (6) months following the end of the financial year of the AIB at the place, date, and time
fixed in the notice of meeting. The attendance of shareholders representing at least sixty per centum
(60%) of the capital of the AIB shall constitute a quorum to do business, The purpose, date, place,
the manner of giving notice, and other matters relating to the holding of the general shareholders
meeting shall be provided for in the by-laws of the AIB in conformity with the provisions this
Act, subject to the applicable provisions of the Corporation Code of the Philippines



Section 13, - The Chairman, President, other Officers and Employees. - The Chairman of
the Board and the President, who shall be the chief executive officer of the AIB and Vice Chairman
of the Board, shall be appointed by the President of the Republic of the Philippines from among
the elected Directors of the Board pursuant to Section 9 of this Act. Both can only be replaced
upon assumption of their respective successors duly qualified and appointed. All other officers and
employees of the Islamic Bank shall be appointed by the Board of Directors and shall be subject
to prevailing Civil Service Rules. The AIB President shall, among others, execute and administer
the policies, measures, orders, and resolutions approved by the Board of Directors. In particular,
he or she shall have the power and duty: to execute all contracts on behalf of the AIB and to enter
into all necessary obligations as required or permitted by this Act; and to report to the Board the
operations of the AIB during regular meetings. He may also call for special board meetings on
matters affecting the operations of the Bank or its business which require immediate action which
the Board can only decide

Section 14. mployee Share Schemes. - The Board of Directors, subject to the approval of
the Bangko Sentral ng Pilipinas and applicable laws, may adopt an employee profit sharing scheme
relative to profits realized by the AIB or any of its affiliates, or the acquisition of shares of stock

through share incentives, share bonus options or any other share saving schemes that the Board
may determine

Section 15. /nvesiment of Funds. - The AIB shall have the capacity of agent or attorney
and shall act with full authority on behalf of its depositors in investing their deposits. It shall ensure
a degree of liquidity to be determined by the Board to meet the current obligations of the ALB,
including drawings from savings accounts and current accounts: Provided, that such degree of
liquidity shall be subject to the reserve requirements of the Bangko Sentral ng Pilipinas. The Board
shall determine the period for an investment participation account. Investment of funds shall be
undertaken by the AIB acting on behalf of a group of depositors or investors in selected areas of
investment under such terms and conditions as the Board may determine by way of mudarabah or
other forms of joint investment permitted by Islamic Shari'ah principle

Section 16, /ncentives to Islamic Banking, - The provisions of Section 72 of Republic Act
(RA) No, 7653 or the New Central Bank Act covering Emergency Restrictions on Exchange
Operations and Article 38. Title II of Executive Order (EO) No. 226 or the Omnibus Investment
Code on the Basic Rights and Guarantees of Investors are made applicable to the commercial
operations of the Islamic Bank in respect to repatriation or remittance of profits from investments,
and to protection against nationalization, sequestrations, or expropriation proceedings. Any
proceeding of judicial or administrative seizure may not be taken against the said property or
nal court judgment

investment except upon a

Seetion 17. Current Accounts of Islamic Banks. - The Bangko Sentral ng Pilipinas is
authorized to open current accounts for Islamic banks for settlement and other purposes under
such rules and regulations as the Monetary Board of the Bangko Sentral n

Pilipinas may



prescribe: Provided, that the BSP may charge administrative and other fees for the maintenance of
such facilities as may be allowed under Shari'ah principles.

Section 18, Capital Funds Requirement - The AIB shall maintain its combined capital
accounts in proportion to its assets as preseribed by the General Banking Law and subject to the
rules and regulations, as well as compliance and monitoring requirements of the Bangko Sentral
ng Pihpinas

Section 19, Grants and Donations, - The ALB shall accept grants, donations, endowments,
and subsidies, or funds and/or property offered by individuals and organizations, who may earmark
such grants for a specific purpose or for such other purposes beneficial to the Muslim communities,
without prejudice to the general objectives of the AIB

The financial statement and books of accounts of such funds shall be maintained separately
but may be supplemented and identified as such in the AIB's balance sheet

Under special circumstances in which the Board considers it advisable to promote or
facilitate Islamic banking business and commercial operations, the AIB may seek financing from
uovernments, organizations, individuals, or banks always without prejudice to the provisions of
this Act

The AIB may also become a depository of institutions who are allowed and authorized to
cakat or ithe. Subject to the requirements of Republic Act No. 23 9160, or the Anti-Money
Laundering Act of 2001 (AMLA), as amended, the AIB, before allowing such institution to open
an account, shall refer to its own SAC to determine the competence, qualification and reputation
of the institution. Independent of the AIB's compliance with the AMLA, the AIB, to ensure its
Sharv'ah compliance, may also conduct a regular background information check on the institution
al any time during the life of the depository and may submit the result thereof to the SAC for its
review and recommendation

receiv

Section 20, Accounting Period. - The Financial Year of the AIB shall be based on the
Gregorian calendar, but the corresponding Islamie Hijra date shall be mentioned on all
correspondences, contracts, printed materials, forms, and records of the AIB. The accounting
period shall commence from the first day of January and close at the end of December of each
vear

Section 21, fax Neutrality. - The Government shall adopt and implement a neutral tax
treatment between Islamic banking transactions and equivalent conventional banking transactions
The Secretary of Finance, upon the recommendation of the Commissioner of the Bureau of Internal
Revenue, shall issue policies and guidelines to implement tax neutrality conducive to the growth

of Islamic banking and finance in the country

Section 22. Exempuion from Customs Duties. - Following the effectivity of this Act, all
importations by the Bank of machinery, equipment, and computers, and accompanying spare parts,



as may be necessary or incidental to its operation, shall be exempt from customs duties and
compensating taxes payable thereon: Provided, however, that the same shall not be disposed of
domestically unless payment is made of all duties thereof at the tariff rates and according to their
condition at the time of disposal and upon compliance with all import and exchange procedures.

Section 23. Non-Applicability o f Selected Acts, - In order to achieve the international and
domestic objectives of Islamic banl

z business, the provisions of the following acts and laws
shall not apply to the AIB to the extent as herein rendered inoperative

(a) The provisions of the Banko Sentral ng Pilipinas and the General Banking Act, with
ar reference to the determination of bank interest rates, loans, and discounts, and any
interest-bearing instruments or charge’ Provided, that nothing contained herein shall be construed
to impair the powers of the Bangko Sentral ng Pilipinas to supervise and regulate the activities of
the AIB, and

parti

(b) The provision of Republic Act (RA) No. 3591, as amended, and all laws, regulating
insurance companies: Provided, however, that nothing contained herein shall preclude the AIB
from the establishment of contemporary Islamic faAa/riy/(solidarity services) free of riba
premiums or interests

Section 24. /erms of Legal Existence. - The legal existence of the AIB shall be for a period
of fifty (50) years from the date of the approval of this Act, renewable upon resolution duly passed
and approved by a majority of the shareholders at the general shareholders meeting called for the
said purpose. At the expiration of the AIB's corporate existence or in the event of its dissolution
before this date. a majority of the shareholders at the general shareholders meeting shall, upon the
request of the Board of Directors, define the method of dissolution as provided for in its by-laws.

Section 25, Application of the Islam ic Shari'ah. - The Bangko Sentral ng Pilipinas shall
promulgate the necessary rules and regulations to carry out the provisions of this Act

Section 26, Penalies for Violation. - Any person who violates or permits the violation of
any provision of this Act shall be punished by a fine not exceeding Two Hundred Thousand pesos
(200,000.00) or an imprisonment of not more than five (5) years, or both at the discretion of the
court

Section 27. Reorganization o f the Bank. ~ The AIB shall commence its reorganization
\within six (6) months from the date this Act takes effect. The present personnel complement of the
Philippine Amanah Bank shall in the interim continue to discharge their respective functions
Officials and personnel whose services may be dispensed with as a result of this reorganization
shall be paid the usual gratuities and benefits to which they may be entitled under existing laws
and regulations.

Section 28. Supervision and Regulation by the Bangko Sentral ng Pilipinas. - The AIB
shall be under the supervision and regulation of the Bangko Sentral ng Pilipinas. All the provisions


of this Act, subject to the applicability of Islamic Shari'ah principles, shall be subject to all banking
and pertinent laws of the Philippines and  Bangko Sentral Rules and Regulations which shall
include proper safeguards to depositors and investors in the investments, partnerships, agen
and other operations of the bank

Ss

Section 29. Privatization. -Nothing in this Act shall be construed as to preclude the AIB
from privatization. In the event of privatization, the Bank shall be registered with the Securities
and Exchange Commission ("SEC"), and shall be subject to the applicable provisions of the
Corporation Code of the Philippines. in addition to the rules and regulations of the Bangko Sentral
ng Pilipinas and other government regulatory agencies.

Seetion 30. Statutory Articles of Incorporation. - This Act, upon its effectivity, shall be
deemed accepted for all legal intents and purposes as the Statutory Articles of Incorporation of the
AIB: and that notwithstanding the provisions of any existing law to the contrary, the AIB shall be
deemed registered and duly authorized to do business and operate as an Islamic Bank as of the
date of approval of this Act

Section 31. The By-laws. -Within sixty (60) days from the effectivity of this Act, the by-
Jaws of the AIB shall be adopted by a majority vote of all shareholders at the general shareholders
meeting, which shall be certified by the Monetary Board of the Bangko Sentral ng Pilipinas
pursuant to Section 14 of Republic Act (RA) No. 8791, or the General Banking Law of 2000. The
by-laws, duly certified by the Monetary Board as aforesaid, shall be signed by the shareholders
voting for them and shall be kept in the principal office of the AIB, subject to the inspection of
any shareholder during office hours, and a copy thereof, duly certified by a majority of the directors
and countersigned by the Corporate Secretary of the AIB, shall be filed and registered with the
SEC

Section 32. Separability Clause. - If any of the provisions of this Act is declared invalid,
the other provisions not affected thereby shall remain in full force and effect.

Section 33, Kepealing Clause. - All laws, presidential decrees, executive orders, rules and
regulations, and other issuances, or any parts thereof, inconsistent with this Act, are hereby
repealed, modified, or amended accordingly

ction 34. /'ffectivity Clause. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved