NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S. No. 1 1 29
§y-t:\Fr-- 
ottv.c e-.' ••
•22 WGll ft10'-32
Rl-Ct'.’.'-w ;5V..
Introduced by Senator MARK A. VILLAR
AN ACT
PROVIDING FOR GOVERNMENT FINANCIAL INSTITUTIONS UNIFIED 
INITIATIVES TO DISTRESSED ENTERPRISES FOR ECONOMIC RECOVERY 
(GUIDE)
EXPLANATORY NOTE
In 2020, COVID-19 pandemic undeniably triggers the world to face enormous 
challenges. Like all other countries, Philippines experienced to be on its unenthusiastic 
condition as the COVID-19 caused health crisis that jeopardized the lives and 
immobilized the economy.
As to these days, the impact of the pandemic on our economy can still be felt. 
Thus, the State should exert all its earnest effort to ensure the stability of the 
economy. This can be made possible by supporting industries critical to economic 
recovery and maintaining employment levels.
Micro, small and medium enterprises (MSMEs) are considered to be the 
backbone of many economies in the world including the Philippines.1 Philippine 
Statistics Authority (PSA) on 2020 MSME Statistics recorded a total of 957, 620
1 Lagasca, t., 
2022. 
FF2020-19: MSMEs in tlie Philippines. [online] Cpbrd.congress.gov.ph. Available at:
<https://cpbrd.congress.gov.ph/2012-06-30-13-06-51/2012-06-30-13-36-50/1195-ff2020-19-msmes-in-the-
philippines#:~:tcxt=Accounting%20for%2f)99.5%25%20ofD/o20the,the%20total%20employmcnt%20in%202018.> [Accessed 5 August 
2022].


business enterprises operating in the country, 99.51% are MSMEs. These MSMEs 
generated a total of 5,380,815 jobs or 62.66 of the country's total employment.2
In terms of value added, the MSME sector contributed 35.7% of the total with 
manufacturing contributing the largest share of 6.87%. Wholesale and retail trade and 
repair contributed 6.58% followed by financial intermediation with a share of 6%.3
MSMEs indeed contribute a lotto the Philippine economy. However, because of 
the pandemic, it was reported that more than 70% of the MSMEs surveyed were 
forced to close their businesses.4
To address this issue, strengthening the capacity of the Land Bank of the 
Philippines (LBP), and the Development Bank of the Philippines (DBP)-- in order to 
provide the needed assistance to MSMEs, and other strategically important companies- 
- shall be enabled. LBP and DBP should likewise be authorized to create special holding 
company to further reactivate these companies affected by the pandemic. These 
special holding companies shall be monitored to ensure that the policies and objectives 
set forth in this bill shall be observed.
Since MSMEs and other strategical important companies are vital for the 
recovery of the government, government financial institutions should be mandated to 
expand their credit programs for the benefit of the former.
Thus, considering the current economic situations, the urgent need to provide 
assistance to MSMEs and other strategical important companies should be prioritized. 
Therefore, the passage of this bill is earnestly sought.
MARK A. VILLAR
Senator
2 Dti.gov.ph. 2022. [online] Available at; <https://www.dti.gov.ph/resouices/msme-statistics/> [Accessed 5 August 2022].
? Id-
4 Shinozaki, S., 2022. Rethinking the impact of the lockdown on micro, small, and medium-sized enterprises in the Philippines - Asia Pathways, 
[online] Asia Pathways. Available at: <https://www.asiapathways-adbi.org/2021/04/rethinking-impact-lockdown-msme-philippines/>
[Accessed 5 August 2022].


oUi:’ •'i^,r."
NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
•22 ftUGIl AlO 32
rece:v-i)bv___
SENATE 
S. No. 1129
Introduced by Senator MARK A. VILLAR
AN ACT
PROVIDING FOR GOVERNMENT FINANCIAL INSTITUTIONS UNIFIED 
INITIATIVES TO DISTRESSED ENTERPRISES FOR ECONOMIC RECOVERY 
(GUIDE)
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
1 
Section 1. Short Title. - This act shall be known as the "Government Financial
1 Institutions (GFIs) Unified Initiatives to Distressed Enterprises for Economic Recovery
3 
(GUIDE) Act"
4 
Sec. 2. Declaration of Policy. - The substantial disruption of the economy due
5 
community quarantine measures restricted the operation of numerous businesses.
6 
The State recognizes the role of these businesses composed of micro, small and
7 
medium enterprises (MSMEs) and strategically important companies in providing
8 
employment to the Filipino people and in supporting the Philippine economy. Thus, it is
9 
essential that these enterprises are given necessary access to credit and financial
10 
assistance. It is hereby declared the policy of the State to protect employment and assist
11 
distressed enterprises in order to reinvigorate the economy.
12


Sec. 3. Definition of Terms - ks used in this Act:
2 
a.) Agribusiness value chain refers to a set of actors/players, such as farmers,
3 
fisherfolk, traders, suppliers, processors, and aggregators, who make up the
4 
linked sequence of value-adding activities undergone by an agricultural product
5 
when converted from raw material to the final form 
It is presented to the
6 
consumers;
7 
b.) Micro, Smaii and Medium Enterprise (MSME) refers to any business activity or
8 
enterprise engaged in industry, agribusiness and/or services, whether single
9 
proprietorship, cooperative, partnership or corporation whose total assets,
10 
inclusive of those arising from loans but exclusive of the land on which the
11 
particular business entity's office, plant and equipment are situated, must have
12 
value falling under the following categories:
13 
micro: 
not more than Php 3,000,00
14 
small: 
Php 3,000,001- Phpl5,000,000
15 
medium: 
Php 15,000,001-Phpl00,000,000
16 
c.) Senior executive officers refer to top management officials exercising
17 
responsible and critical roles, as may be described further 
in the rules and
18 
regulations to be issued to implement this Act.
19 
d.) Strategically Important Companies or SICs shall have the meaning ascribed in
20 
Section 9 (b) of this Act.
21 
CHAPTER 1 Development Bank of the Philippines
22 
Sec. 4. Loan Assistance Program of the Development Bank of the Philippines
23 
(DBP). - The DBP shall expand its loan program for qualified MSMEs affected by the
24 
COVID-19 pandemic under this Act and MSMEs covered under Republic Act No. 11494 or
25 
"the Bayanihan to Recover as One Act": Provided, That such loans shall be granted in
26 
accordance with the rules and regulations to be issued to implement this Act and the
27 
following guidelines:
28 
a.) Eligible MSMEs under this Act should be engaged in infrastructure, service
29 
industry, and/or manufacturing business; and
2


1 
b.)The loans granted hereunder should comply with the applicable prudential
2 
standards and regulations of the Bangko Sentral ng Pilipinas (BSP).
3 
The DBP shall likewise extend loans to local government units (LGUs) subject
4 
to existing rules and regulations.
5 
Sec. 5. DBP Rediscounting and other Programs. Subject to applicable prudential
6 
standards and regulations of the BSP, the DBP may rediscount loans and other credit
7 
accommodations to enterprises enumerated in Section 4(a) of this Act, granted by BSP-
8 
supervised financial Institutions (BSFIs), the Small Business Corporation (SBC), and those
9 
granted pursuant to credit programs of the Department of Agriculture-Agricultural Credit
10 
Policy Council (DA-ACPC) to MSMEs affected by the COVID-19 pandemic engaged in
11 
infrastructure, service industry, and/or manufacturing business
12 
The DBP may undertake other similar activities as may be provided under the rules
13 
and regulations to be issued to implement this Act
14 
Sec. 6. Increase in DBP's Authorized CapitaiStock. — Section 7 of Executive Order
15 
No. 81, as amended by the Republic Act No. 8532, otherwise known as "The 1986 Revised
16 
Charter of the Deveiopment Bank of the Phiiippines", as amended, is hereby further
17 
amended to read as follows:
18 
"Section 7. Authorized Capital Stock-Par Value. The capital
19 
stock of the Bank shall be [ Thirty five ■ billion ■ pesos
20 
(P35,000,000,000.00)] ONE HUNDRED BILLION PESOS
21 
(PHPlOO,000,000,000.00) to be divided into [Three
22 
huFtdred fifty million (350,000,000)] ONE BILLION
23 
(1,000,000,000) common shares with par value of One
24 
hundred pesos (PhplOO.OO) per share, which shall be fully
25 
subscribed by the ftNational §Government: [Upen- - T-he
26 
cffcctivity -ef-this.Charter, the National Government- shall
27 
initially subscribe to One hundred twenty--five-million
28 
(l-2-S,000,000) common-shares of-stock-worth Twelve billion


1 
five—hundred million ■ pesos (P12/5000/000AQ00.0O)7 Five
2 
billion peses-(5^000,OQO.QQQ^OOVof which-shall-be deemed
3 
peid-fer-by-the government and the balance shall be-paid for-
4 
by-fehe-government out of the stock dividends to be-declared
5 
by-the-Bank from its unappropriated retained earningsv
6 
Provided,-That the dividend due the national government
7 
pursuant to Republic Act No. 7656 shall-Tirst be paid.]
8 
PROVIDED, THAT THE PRESIDENT OF THE
9 
PHILIPPINES MAY APPROVE THE INCREASE IN THE
10 
CAPITALIZATION OF THE BANK, UPON THE
11 
RECOMMENDATION OF THE BOARD AND THE
12 
CONCURRENCE OF THE SECRETARY OF FINANCE, UP
13 
TO SUCH AN AMOUNT AS MAY BE NECESSARY TO
14 
ATTAIN THE OBJECTIVES OF THIS CHARTER."
15 
CHAPTER 2 Land Bank of the Philippines
16 
Sec. 7. Loan Assistance Program of the Land Bank of the Philippines (LandBank).
17 
-The LandBank shall expand its loan program for qualified MSMEs affected by the Covid-
18 
19 pandemic under this Act and those covered under the Republic Act No. 11494 or "the
19 
Bayanihan to Recover as One Act": Provided, That such loans shall be granted in
20 
accordance with the rules and regulations that shall be issued to implement this Act and
21 
the following guidelines:
22 
a.) Eligible MSMEs under this Act should be engaged in activities in the
23 
agribusiness value chain; and
24 
b.)The loans granted hereunder should comply with the applicable prudential
25 
standards and regulations of the BSP.
26 
The Land Bank shall likewise extend loans to the LGUs subject to existing rules
27 
and regulations.


1 
Sec. 8. Land Bank Rediscounting and other Programs. - Subject to applicable
2 
prudential standards and regulations of the BSP, the Land Bank may rediscount loans to
3 
eligible MSMEs engaged in activities in the agribusiness value chain granted by BSFIs, the
4 
SBC, and those granted pursuant to credit programs of the DA-ACPC to MSMEs affected
5 
by the COVID-19 pandemic.
6 
The Land Bank may undertake other similar activities for purposes of this Act as
7 
may be provided under the implementing rules and regulations to be issued.
8 
CHAPTER 3 Special Holding Company
9 
Sec. 9. Creation of Investment Vehicie. - To ensure that Strategically Important
10 
Companies (SICs) remain solvent, the LandBank and DBP are hereby authorized to invest
11 
in, or enter into a joint venture agreement to incorporate a special holding company (the
12 
"SHC'O that is a stock corporation to be organized under Republic Act No. 11232,
13 
otherwise known as "The Revised Corporation Code of the Philippines," within six (6)
14 
months beginning from the date of effectivity of the rules and regulations of this Act, or
15 
effectivity of applicable revenue regulations, whichever comes later. The establishment,
16 
administration, and operation of the SHC shall be governed by the following principles:
17 
a.) The purpose of the SHC is to rehabilitate SIC affected by the COVID-19
18 
pandemic which are experiencing temporary solvency issues;
19 
b.) SICs are investee companies that are nationally significant, or those with high
20 
economic returns or high employment potential, and which are engaged in any
21 
of the following "strategically important Industries or sectors," such as, but not
22 
limited to, agriculture, constructions, education, food industry, power and
23 
energy, product distributor/retailer, services. Tourism and hospitality,
24 
transportation and logistics, water and sanitations and other industries to be
25 
identified in the rules and regulations issued to implement this Act: Provided,
26 
That a SIC must be able to demonstrate upstream and downstream linkages
27 
to other firms and/or industries, substantial employment to the community,
28 
and exhibit high degree of process efficiency, cost efficiency, product quality.


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
and environmental soundness: Provided, further, That a SIC can show proof 
of temporary solvency problems due to the pandemic, financial soundness 
prior to the pandemic, and credible and sound financial rehabilitation plan.
c. ) Equity participation in the SHC may be offered to, and held by, qualified private
sector, investors, including multilateral companies and lending institutions, as 
may be determined by the LandBank and DBP: Provided, That majority 
ownership of the total outstanding capital stock in the SHC shall be held by 
the LandBank and DBP until such time that they have covered or will be able 
to recover their investment in the SHC;
d. ) The LandBank and the DBP shall dispose of their stockholdings in the SHC to
qualified private sector investors as they may determine. The LandBank and 
DBP shall provide equal opportunity for equity participation in the SHC to all 
qualified investors, including multilateral companies and lending institutions. 
When private shareholdings in the SHC reaches fifty percent (50%) of the total 
outstanding capital stock, the stockholders thereof shall cause the adoption 
and registration with the Securities and Exchange Commission (SEC) of the 
company's amended articles of incorporation within three (3) months from 
such transfer of ownership;
e. ) The SHC, as a government-owner or controlled corporation (GOCC), and the
investment of DBP and LandBank therein, shall be subject to the power of the 
Commission on Audit (COA) to audit and examine GOCCs and the investments 
of the government in corporations: Provided, That the audit of SHC by the 
COA shall not preclude the SHC from engaging the services of a private 
auditing firm when equity participation in the SHC is offered to qualified private 
investors: Provided, further. That even If the services of the latter are availed 
of, the audit report of the COA shall serve as the report for purposes of 
compliance with audit requirements as required of a GOCC under applicable 
law;
f. ) The SHC shall devise mechanisms that shall protect the government's
investment, such as issuing a special class or series of shares, or entering into


1 
shareholders' or voting share agreements for the purpose as provided in the
2 
rules and regulations issued to implement this Act.
3 
Sec. 10. Powers of the Investment Vehicle. - The SHC shall have the powers
4 
granted to a stock corporation under Republic Act No. 11232. Furthermore, the power of
5 
the SHC to invest shall be subject to the following investment guidelines:
6 
a.) To avoid undue risk concentration from excessive exposures, the investment
7 
of the SHC in an investee company and the total investment in companies
8 
belonging to the same industry or sector shall be subject to a ceiling in relation
9 
to its net income or capital as prescribed under the implementing rules and
10 
regulations;
11 
b.) The SHC can only invest in corporations engaged in strategically important
12 
industries or sectors that are experiencing temporary solvency Issues because
13 
of the COVID-19 pandemic, such as those with considerable impact on the
14 
economy;
15 
c.) Such investment shall be in the form of (i) limited equity participation by
16 
subscription or acquisition of shares, (ii) execution of convertible loans or
17 
purchase of convertible bonds; and/or (iii) investment in such other securities
18 
as may be issued by the investee corporations, acceptable to the DBP and
19 
LandBank; and
20 
d.) The investee company is eligible based on the requirements in this Section and
21 
in Section 13 of this Act.
22 
Sec. 11. Board of Directors of the SHC. - The powers and authority of the SHC
23 
shall be vested in, and exercised by a Board of Directors, hereinafter referred to as the
24 
"Board," composed of nine (9) members, as follows:
25 
a.) The Secretary of Finance, as ex-officio Chairperson;
26 
b.) The President of the LandBank;
27 
c.) The President of DBP;
28 
d.) The President or Chief Executive Officer of the SHC;


1 
e.) Two (2) independent Directors;
2 
f.) Three (3) directors who shall be appointed by the LandBank, DBP, and the
3 
private equity investor(s), if any, in proportion to the voting shares held in the
4 
SHC.
5 
The members of the Board shall elect from among themselves the Vice
6 
Chairperson. The ex-officio member of the Board may designate their respective
7 
representatives who shall exercise the powers of a director.
8 
Once the private shareholdings in the SHC reaches fifty percent (50%) of the total
9 
outstanding capital stock, subject to the proviso of Chapter 3, Section 9(c) of this Act,
10 
the company shall cease to be a GOCC, the ex-officio directors will cease to be members
11 
of the Board, and the membership of the Board shall be based on the election of the
12 
directors by the voting shares held by the shareholders, pursuant to the provision of
13 
Republic Act No. 11232.
14 
The Board shall provide for an organization and staff of officers and employees of
15 
the SHC and fix their remuneration and other emoluments. All positions in the SHC shall
16 
be governed by the compensation, position classification system, and qualification
17 
standards approved by the Board based on a job analysis of actual duties and
18 
responsibilities. The compensation plan shall be comparable with the prevailing
19 
compensation plans in the private sector and shall be subject to reviews once every two
20 
(2) years, without prejudice to early merit or increases based on the SHC's productivity
21 
and profitability. The SHC, being a GOCC, shall therefore be exempt from existing laws
22 
and the rules and regulations on compensation, position classification, and qualification
23 
standards in the government service.
24 
Sec. 12. Responsibiiity of the Board and the Empioyees of the SHC. - The Board
25 
shall set appropriate standards and corporate governance for the investee companies
26 
that the SHC will invest in. The Board shall likewise institute mechanisms to oversee that
27 
such standards are followed by the investee company.


1 
The general rule and the exception therefrom on the liability of public officers as
2 
provided in Sections 38 and 39 of Chapter 9, Book 1 of the Revised Administrative Code
3 
of 1987 shall apply to the members of the Board and other personnel of the SHC unless
4 
the actions or omissions of the SHC, members of the Board and its other personnel are
5 
finally adjudged to be in willful violation of this Act, performed in evident bad faith or with
6 
gross negligence, they shall be held free and harmless to the fullest extent permitted by
7 
law from any liability, and they shall be indemnified for any and all liabilities, losses,
8 
claims, demands, damages, deficiencies, costs and expenses of whatsoever kind and
9 
nature that may arise in connection with the exercise of their powers and performance
10 
of their duties and functions.
11 
Sec. 13. Requirement for the Investee Company. - To be eligible, the investee
12 
company must not be a party to any pending tax-related cases in court for tax collection
13 
or tax evasion, must not be a debtor in any bankruptcy proceeding prior to the enhanced
14 
community quarantine period, and must not be insolvent and is capable of being
15 
rehabilitated as determined by the SHC.
16 
The agreement between the SHC and the investee company must contain the
17 
following minimum conditions:
18 
a.) The investee company must not reduce the number of employees beyond the
19 
percentage prescribed by the SHC;
20 
b.)The investee company shall not, without prior authority from the SHC, be
21 
allowed to issue stock dividends 
and repurchases 
during 
the term of the
22 
investment;
23 
c.) The investee company shall not issue cash dividends during the term of the
24 
investment;
25 
d.) The investee company must not increase salaries, benefits and other forms of
26 
remuneration of its senior executive officers and members 
of its board;
27 
e.) The investee company shall not provide or grant senior executive officers and
28 
members of its Board separation pay or retirement pay: Provided, That any


1 
amount received by the senior executive officers and members of the board
2 
which is in violation of the foregoing shall be returned;
3 
f.) The investee company shall not incur irregular, unnecessary, excessive,
4 
extravagant or unconscionable expenditures such as entertainment, events,
5 
office/facility renovations, aviation/transportation services and other activities;
6 
g.) The ownership of the SHC in the investee company shall not be diluted and a
7 
provision protecting the value of the shares of the SHC from market transaction
8 
such as stock splits, mergers and other forms of reorganization and
9 
recapitalization shall be Included in the agreement; and
10 
h.) The Investment in the investee company shall be time-bound with a definite
11 
exit mechanism.
12 
Provided, further, That additional conditions and provisions may be imposed by
13 
the SHC to ensure that the investment will be properly utilized and ensure the successful
14 
rehabilitation of the investee company.
15 
CHAPTER 4 Incentives and Exemption Privileges of the DBP, LandBank,
16 
and the SHC
17 
Sec. 14. Tax Exemption and Fee Privileges . - Any existing law to the contrary
18 
notwithstanding, the following shall be exempt from documentary stamp tax, capital gains
19 
tax, creditable withholding income tax, valued-added tax, gross receipts tax, and such
20 
other taxes that may be imposed under Republic Act No. 8424, or the "National Internal
21 
Revenue Code of 1997," as amended, whichever is applicable pursuant to the regulations
22 
to be issued by the Department of Finance (DOF), upon the recommendation of the
23 
Bureau of Internal Revenue (BIR):
24 
a.) Loan assistance program, rediscounting and other programs of the DBP and
25 
LandBank under Chapters 1 and 2 of this Act, respectively, including dation in
26 
payment {dacion en pago) by the borrower or by a third party in favor of the
27 
DBP and the Landbank; and
28 
b.) Transactions of SHC as to its:
10


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21
22
23
24
25
26
27
28
(i) 
subscription or acquisition of shares;
(ii) 
execution of convertible loans or purchase of convertible bonds;
(iii) 
investment in such other securities as may be issued by the investee 
corporations, acceptable to DBP and LandBank; and
(iv) 
acquisitions of assets of an investee company.
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 subsequent transfers may be availed for a period of 
three (3) years from the date of acquisition by the DBP, LandBank, or the SHC; 
Provided, 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
11


1 
GOCC, its tax exemptions and fee privileges under this clause shall be automatically
2 
revoked.
3 
Sec. 15. Emergency Procurement under the Go vernment Procurement Reform Act
4 
—In order to ensure the expeditious implementation of their mandates under this Act,
5 
procurement activities undertaken by the LandBank, DBF, and the SHC in light of the
6 
COVID-19 pandemic and pursuant to their mandate and functions as defined in this Act,
7 
shall adopt the rules under Negotiated Procurement under Emergency Cases under
8 
Section 53 (b) of the Republic Act NO. 9184, or the "Government Procurement Reform
9 
Act" for a period of three (3) years from the effectivity of the implementing rules and
10 
regulations to be issued under Chapter 5, Section 20 of this Act.
11 
Sec. 16. Other Exemptions of the SHC. - The SHC shall be exempt from the
12 
provisions of Republic Act No. 10149, or the "GOCC Governance Act of 2011."
13 
Further, transactions by the SHC shall be exempt from the provisions of the
14 
Republic Act No. 10667, or the "Philippine Competition Act" for a period of three (3) years
15 
from its incorporation: Provided, That this exemption shall only apply to acquisitions of
16 
assets of an investee company by the SHC pursuant to its powers under this Act.
17 
Any provision of law to the contrary notwithstanding, the disposal of assets of an
18 
investee company by the SHC pursuant to their mandate and functions, as well as the
19 
disposal of shares, assets, or investments by LandBank or DBP, or both, in the SHC, shall
20 
be exempt from the provisions of laws and regulations on government disposal of assets.
21 
Sec. 17. Prohibition Against Injunction. - No court, other than the Court of Appeals
22 
and the Supreme Court, shall issue any temporary restraining order, preliminary
23 
injunction, preliminary mandatory injunction, status quo order, stay order,
24 
commencement order, or any other issuance of injunctive relief against the sale or
25 
acquisitions of assets of an investee company by the SHC, or the disposal of assets of an
26 
investee company by the SHC, including judicial or extrajudicial foreclosure sales or
27 
execution sales.
12


1 
CHAPTER 5 Miscellaneous Provisions
2 
Sec. 18. Ratios, Ceilings, and Limitations. - For purpose of this Act, the Monetary
3 
Board may exempt the DBP and LandBank from such ratios, ceilings and limitations,
4 
provided under Republic Act No. 8791 or the "The General Banking Law of 2000," for a
5 
period as may be determined by the Monetary Board, subject to conditions as may be
6 
prescribed by the Monetary Board such as, but not limited to, the adoption of appropriate
7 
risk management measures to mitigate risks that may arise for the implementation of this
8 
law.
9 
Sec. 19. Appropriations. - The amount of Ten Billion Pesos (Php
10 
10,000,000,000.00) is hereby appropriated out of any funds actually available in the
11 
National Treasury of the Philippines not otherwise appropriated, as certified by the Nation
12 
Treasurer, to fund the following:
13 
a.) The amount of Two Billion Five Flundred Million Pesos (Php 2,500,000,000.00) for
14 
the implementation of Chapter 1 and 3 of this Act: Provided, That this amount
15 
shall be applied as additional paid-up capital of the DBP, for the purposes of
16 
lending under the loan assistance program to qualified MSMEs, its rediscounting
17 
and other programs, and the creation of the SFIC: Provided, further, that DBP can
18 
also utilize funds appropriated under SectionlO of Republic Act No. 11494 or "the
19 
Bayanihan to Recover as One Act" for the implementation of Chapter 1 of this Act;
20 
Provided, finally, that the total amount of Php 2,500,000,000.00 can be fully
21 
utilized, if required, for the equity infusion in the SFIC; and
22 
b.) The amount of Seven Billion Five Flundred Million Pesos (Php 7,500,000,000.00)
23 
for the implementation of Chapters 2 and 3 of this Act: Provided, That this amount
24 
shall be applied as additional paid-up capital of LandBank, for the purposes of
25 
lending under the loan assistance program to qualified MSMEs, rediscounting and
26 
other programs of LandBank, and the creation of the SHC: Provided, further. That
27 
LBP can also utilize funds appropriated under Section 10 of the Republic Act No.
28 
11494 or "the Bayanihan to Recover as One Act" for the implementation of Chapter
13


1 
2 of this Act; Provided, finally. That the total amount of Php 7,500,000,000.00 can
2 
be fully utilized, if required, for the equity infusion in the SHC;
3 
Sec. 20. Implementing Rules and Regulations. - Within thirty (3) days from the
4 
effectivity of this Act, the DOF, together with the BIR, the BSP, the SEC, the DBP, and
5 
the LandBank shall jointly promulgate the necessary rules and regulations for the effective
6 
implementation of this Act: Provided, That the DOF may call upon any agency to provide
7 
the information or assistance in the drafting of the rules and regulations: Provided,
8 
further. That within thirty (30) days form the effectivity of this Act, the DOF, upon
9 
recommendation of the BIR, shall promulgate the revenue regulations implementing the
10 
fiscal incentives under this Act.
11 
Sec. 21. Oversight Committee. -There is hereby created a Joint Congressional
12 
Oversight Committee (JCOC) to oversee, monitor, and evaluate the implementation of
13 
this Act. The JCOC shall be composed of five (5) members each from the Flouse of
14 
Representatives and from the Senate. The JCOC shall be co-chaired by the Chairpersons
15 
of the House Committee on Banks and Financial Intermediaries and the Senate
16 
Committee on Banks, Financial Institutions and Currencies.
17 
The Speaker and the Senate President shall designate the other four member of
18 
the JCOC of the House and the Senate from among the members of the House Committee
19 
on Banks and Financial Intermediaries and the Senate Committee on Banks, Financial
20 
Institutions, and Currencies, at least one member of which shall be from the minority.
21 
Sec. 22. Separability Clause. - If any provision of this Act is held unconstitutional
22 
or invalid, all other provisions not affected thereby shall remain valid.
23 
Sec. 23. Repealing Clause. -All laws, executive orders, rules and regulations or
24 
parts thereof, which are inconsistent with this Act are hereby repealed, amended or
25 
modified accordingly.
26 
Sec. 24. Effectivity. - This Act shall take effect immediately upon Its publication in
27 
the Official Gazette or in a newspaper of general circulation in the Philippines.
Approved,
14