Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILLNo, 8829

Introduced by HONORABLE STRIKE B. REVILLA

EXPLANATORY NOTE

At present, Overseas Filipino Workers are considered our modern heroes, Along
with other economic stimulants, the pouring-in of remittances from the OFWs to their
families here in our country contributes a lot to the functioning and survival of our
economy. 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.

OFWs, which number close to 1.5M excluding workers who have acquired
immigrant status in their host countries, have greatly affected government policies ever
since. However 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.

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. Our so-called modern day
heroes will surely gain 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 view of the foregoing, passage of this bill is earnestly sought.

REP. STRIKE B. REVILLA

2nd District of Cavite



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No, 8829

Introduced by HONORABLE STRIKE B. REVILLA

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 the “Philippine Overseas Workers Bank,” hereinafter 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
other 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 reapplying for overseas employment


to defray the payment of placement fees and other
expenses thereof:

c. To enter into agreements or contracts 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
operation;

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 or be sued; and to exercise the
general powers of a corporation as provided in Batas
Pambansa Blg. 68, otherwise known as the "Corporation
Code of the Philippines," and the powers of the 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 an employee or worker outside the Philippines under a valid
employment contract, which shall include seamen and employees or workers on board
vessels plying international waters, name hires, and other workers whose contracts of
employment involve the rendering of services in a foreign country, whether as laborers,
office workers or professional employees.

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 share. Fifty one percent (51%) of the
total shares provided herein, or one billion one hundred million (1,100,000,000.00) shall
be common shares, while the remaining forty nine percent (49%) or nine hundred
million (800,000,000) shares shall be preferred.


Thereafter, the members of the Board of Directors shall be elected annually by
the stockholders in the manner prescribed by the Corporation Code: Provided, That no
director, officer or employee of any other bank shall be eligible as member 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 (PI ,000.00) for every meeting of
the Board actually attended by them: Provided, finally, That the total’ amount per diems
for single month shall not exceed the sum of Six Thousand Pesos (P6,000.00)

The Board of Directors shall, upon a majority of all its members, elect its
Chairman, Vice-chairman and other officers. Pending the election of the Chairman,
the President of the Bank shall preside over the Board of Directors.

Sec. 8. Election and Qualifications Of Members of the Board of
Directors. -- Annually on the first Tuesday in 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 and held by 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 commutative voting as recognized by law.

No person shall be elected director of 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 attained proficiency,
expertise and recognized competence in one (1) or more of the following overseas
employment promotions and recruitment, banking, finance, economics, law and/or
business management

Sec. 9. Power of the Board of Directors -- The Board of Directors shall
have, among others, the following duties, powers and authority:

a) To formulate policies necessary to carry out effectively
the provision of this Act;

b) To adopt, amend or change the by laws as well as
such rules and regulation as may be necessary for the


The Government of the Republic of the Philippines shall, on behalf of the
overseas contract workers, fully subscribe to the total common shares of the bank. The
amount necessary for the government's subscription shall be advanced by the
Overseas Welfare Administration (OWWA): Provided That, the National Government
shall, within a period of three (3) years, return to OWWA the amount herein before
mentioned: Provided further, that OWWA shall hold and represent the shares
corresponding to the amount it has advanced until it shall have been fully reimbursed
from the sale of the stocks subscribed by the national government in favor of overseas
contract workers.

Sec. 6. Authorized Loans and Investments. --In the exercise of its lending
authority, the Bank shall give preference and priority to loans for agricultural and small
medium scale commercial and industrial enterprises particularly for overseas workers,
their spouses or compulsory heirs.

Unless otherwise provided in this Act, loans and other credit accommodations
granted by the bank shall be subject to the 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 No. 337, as amended.

Sec. 7. Board of Directors; Composition; Tenure and Per Diem--Within the
first three (3) years from the organization of the bank, the affairs and business of the
bank shall be directed and its properties managed and preserved and its corporate
powers exercised, unless otherwise provided in this Act, by a Board of Directors
consisting of eleven (11) members, composed of the Secretary of Labor and
Employment as ex-officio Chairman, the Chairman of the Senate and House of
Representatives Committee on Labor and Employment, the Administrators of the
Philippine Overseas Employment Administration (POEA) and Overseas Workers
Welfare Administration (OWWA) as ex-officio members, and the remaining members
shall be selected from the officers of the different overseas workers associations and be
appointed by the President of the Philippines: Provided, That, at least one-(I) member
shall be ordinary overseas worker: Provided further, That one (1) member each shall
come from Visayas and Mindanao.


effective operation of the Bank, in conformity with this

Act and existing laws;

To prescribe such terms and condition fo govern the

granting of loans credits, consistent with the provision

of this Act;

d) To adopt an 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
and frauds;

f) 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 fix;

g) 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;

h) To provide for the appointment and removal, as will fix

reasonable compensation, for its personnel in

accordance with existing laws;

To determine the procedure and requirements for the
acquisition of properties necessary for the business of
the bank;

j) To dispose of properties of the Bank, whether used in
the conduct of its business or acquired as a result of its
banking operations, by public bidding or private
negotiations; and,

k) To perform such other functions as may be necessary

to achieve the objective 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 at ten
(10) years previous 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, executive
and administer the policies, measure, orders and resolution 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:

=

To exercise, as Chief Executive Officer, the power of
supervision and control over decisions or actions of
subordinate officers and all other powers that may be
granted by the Board;

&

To recommend to the Board the appointment,
promotion or removal of all officers of the Bank,
including those with the rank of at least Vice-president
or its equivalent;

d

To appoint, promote or remove employees and officer

below the rank of Vice-President;

e) To transfer, assign or reassign officers and personnel
of the Bank in the interest of the services:

f) To report periodically to the Board of Directors on the

operations of the Bank; and,

To delegate any of his powers, duties or functions to
any Official of the Bank, with the approval of the Board
of Directors.

9,

Sec. 11. Other Officers and Employees. -- The Board of Directors shall
provide for an organization and staff of officers and employees of the Bank and upon


recommendation of the President of the Bank, fix their remuneration and other
emoluments,

No officer or employee of the Bank subject to Civil Service Law shall be
dismissed or suspended except as prided 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 member of its legal
staff to act as Special Sheriff in the enforcement of court writs 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 front 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 the discussion or resolution of any given matter, 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 or
employee of the Bank shall reveal to, nor allow to be examined, inquired or looked
into by any information relative to details on individual accounts or specific banking
transactions: Provided, That in respect to deposits of whatever nature, the
provisions of any existing taws 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 maybe allowed by law.

Sec. 17. Borrowings of Directors, Offices 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 employees, and/or their respective
relatives within the second degree of consanguinity or affinity, is a director, officer or
controlling share holder, shall either 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 obligor for money borrowed from the Bank or loaned
by it: Provided, That this prohibition or loans to directors, officers and employees
shall not include loans in the form of fringe benefits granted in accordance with rules
and regulations as maybe 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 to 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 by way of
foreclosure or other means shall be sold or otherwise disposed of in accordance
with the policies and guidelines adopted by the Board of Directors within (3) years
after date of their acquisition.

Sec. 19. Right of Redemption of Foreclosed Property and Procession
During Redemption Period. -- Within one (1) year from the registration of the
foreclosure sale or 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 the Bank outstanding and dues to 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 country notwithstanding, the bank shall act as official
government depository with authority to maintain deposits of the government,
particularly with respect to funds 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 or equipment, machinery and other items as
maybe 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 after the date of the approval of this Act.

Sec. 23. Articles of Incorporation of Charter. - This Act, upon its approval,
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 approval of this Act.

Sec. 24. By-laws. -- The by-laws of the Bank for its organizational, functional,
and operational government and procedures shall be adopted by the affirmative vote
of the stock holders representing a majority of all the subscribed capital stock and
title to vote, whether paid or unpaid, within one (1) month after the approval of this
Act. The said by-laws shall be subject to certifications by the Monetary Board
pursuant to the provisions of the 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
violations of any of the provisions of this Act, shall be punished by a fine not to
exceed Ten thousand pesos (P10,000.00) or by imprisonment of not more than five
(5) years or both such fine and imprisonment.

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 provision or part of this act and their application to such person,
association or circumstances shall not be affected thereby.

Sec. 27. Repealing Clause. -- All other laws, decrees, Acts, executive
orders, proclamations, rules and regulation or parts thereof inconsistent with any of
the provisions of this Act are hereby repealed, amended or modified accordingly.

Sec. 28. Effectivity. --This Act shall take effect within fifteen (15) days from

its publication in the Official Gazette or in a newspaper of general circulation.

Approved.