FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENA,TJ; 
S.B. No. IH70 
) 
) 
) 
Introduced by Senator Ramon Bong Revilla, Jr. 
EXPLANATORY NOTE 
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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 fo 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. 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENJ\T~ 
S.B. No. IH70 
) 
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Introduced by Senator Ramon 80ng Revilla, Jr. 
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 
"Sank," 
Sec. 2. Place ot 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 
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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 Big. 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,OOO.OO) 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 (900,000,000) shares shall be preferred. 
2 


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-(l) member 
shall be ordinary overseas worker: Provided further, That one (1) member each shall 
come from Visayas and Mindanao. 
3 


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,OOO.OO). 
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 h'eld 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 
4 


effective operation of the Bank, in conformity with this 
Act and existing laws; 
c) To prescribe such terms and condition to 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; 
i) 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. 
5 


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: 
b) 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; 
c) 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, 
g) To delegate any of his powers, duties or functions to 
any official 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 and staff of officers and employees of the Bank and upon 
6 


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. 
, 
Se·c. 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. 
7 


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 SentraJ 
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. 
8 


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. 
9 


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 (PIO,OOO.OO) 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. 
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