THIRTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
1 
First Regular Session 
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'04 JUN 30 P4 :I 1 
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SENATE 
S. No. 
Introduced by Senator S. R. OsmeAa 111 
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. EXPLANATORY NOTE 
Finding an escape from poverty at home through their jobs in other countries, 
Filipino overseas workers have been hailed as the latter day Filipino heroes. Their 
remittances, estimated at P I  12.7 billion as of May 2003 have on several occasions 
shored up the country's foreign exchange reserves, at the time when such was badly 
needed. As of 2002, overseas Filipino workers are estimated at close to 891,908 as 
excluding those who have earned immigrant status in their host countries. 
This bill provides for the establishment of a banking institution for Filipino 
Overseas Workers, to be known as the Philippine Overseas workers as a sector. The 
bank shall, for services catering to the needs of overseas workers as a sector. The 
bank shall, for instance be the depository of overseas workers fund, and shall give 
preference to loans for agricultural and small and medium scale commercial and 
industrial enterprises, particularly for overseas workers, their spouses or compulsory 
of the stocks. 
The P 2 billion capitalization of the bank, shall be subscribed by the National 
Government in favor of overseas contract workers, to be advanced by the Overseas 
Workers Welfare Administration (OWWA) and to be reimbursed from sale of stocks. 
The establishment of this bank will widen the opportunities available to 
overseas workers in the local economy, encourage greater savings and investments 
on their part, as a source of growth for the domestic economy. 
In view of the foregoing, early passage of this bill is earnestly requested. 
SERGIO OSMENA Ill 
Senator 


THIRTEENTH CONGRESS OF THE REPUBLI 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
1 
S E N A T  
S. No. 
Introduced by Senator S. R. Osmeiia I l l  
AN ACT 
CREATING THE PHILIPPINE OVERSEAS WORKERS BANK, AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Republic of the 
Philippines in Congress assembled: 
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SECTION 1. Overseas Workers Bank. - There is hereby created a 
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Bank to be known as the "Philippine Overseas Workers Bank," hereinafter 
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referred to as the "Bank". 
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SEC. 2. Place of Business: Branches; Agencies and other Offices. - 
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The Bank's principal office and place of business shall be in Metro Manila. It 
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may open and maintain other branches, agencies and other offices at such 
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places in the Philippines or abroad as its Board of Directors may deem 
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advisable, with prior approval of the Monetary Board of the Bangko Sentral ng 
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Pilipinas. 
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SEC. 3. Corporate Powers and Funcfions. - The Bank shall be a 
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corporate body and shall have the following powers and purposes: 
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a) To grant loans and other financial assistance preferably to Filipino 
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overseas workers, their spouses, or compulsory heirs, for the 
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development of agriculture and small and medium scale commercial 
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and industrial enterprises; 
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b) To grant loans and other financial assistance to Filipino workers 
applying or re-applying for overseas employment to defray the 
payment of placement fees and other expenses thereof; 
c) To enter into agreements or 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 operations; 
9 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 corn p u lsory heirs; 
g) To receive deposits and accept property, real or personal, as 
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collateral or security; and 
h) To adopt, amend or change its by-laws; to adopt, after and use a seal; 
to sue or be sued; and to exercise the general powers of a corporation 
as provided in Batas Pambansa Bilang 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 are serving as employees or workers outside the 
Philippines under valid employment contracts involving the rendering of services 
in a foreign country, such as skilled and unskilled laborers, office factory or 
household workers or professional employees, and which shall include seamen 
and employees or workers on board vessels plying international waters, name 
hires, and other similar workers. 
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SEC. 5. Authorized Capifal Stock. - The capital stock of the Bank shall 
be Two billion pesos (P2,000,000,000.00) divided into two million (2,000,000) 
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shares with a par value of One thousand pesos (PI ,000.00) per share. Fifty one 
percent (51%) of the total shares provided herein, or one billion one hundred 
million (1 ,I 
00,000,000) shall be common shares, while the remaining forty nine 
percent (49%) or nine hundred million (900,000,000) shares shall be preferred. 
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The Government of the Republic of the Philippines shall, on behalf of the 
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overseas contract workers, fully subscribe to the total common shares of the 
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bank. The amount necessary for the government’s subscription shall be 
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advanced by the Overseas Worker Welfare Administration (OVWVA): Provided, 
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further, That the OWWA shall hold and represent the shares corresponding to 
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the amount it has advanced until it shall have been fully reimbursed from the 
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sale of the stocks subscribed by the National Government in favor of overseas 
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contract workers. 
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SEC. 6. Authorized Loans and Investments. - In the exercise of its 
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lending authority, the Bank shall give preference and priority to loans for 
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agricultural and small and medium scale commercial and industrial enterprises, 
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Unless otherwise provided in this Act, loans and other credit 
particularly for overseas workers, their spouses or compulsory heirs. 
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accommodations granted by the Bank shall be subject to the appropriate 
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applicable loan limits to any single borrower as provided under Republic Act No. 
337, as amended, otherwise known as the General Banking Act. 
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The authority of the Bank to invest in equities of allied undertakings, 
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financial or non-financial, as well as non-allied undertakings, shall be governed 
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SEC. 7. Board of Directors: Composition: Tenure: Per Diems. - 
by the provisions of Republic Act No. 337, as amended. 
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Within the first three (3) years from the organization of the Bank, its affairs and 
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business shall be directed, and its properties managed and preserved, and its 
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corporate powers exercised, unless otherwise provided in this Act, by a Board of 
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Directors consisting of eleven (11) members. The Secretary of Labor and 
Employment shall be the ex-officio Chairman, and the respective Chairmen of 
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the Senate and House of Representatives Committees on Labor and 
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Employment, the Administrators of the Philippine Overseas Employment 
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Administration (POEA) and the Overseas Workers Welfare Administration 
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( O W A )  as ex-officio Members 
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The remaining six (6) members shall be selected from the officers and 
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members of the different overseas workers associations and be appointed by 
the President of the Republic of the Philippines: Provided, That at least one (I) 
member of the Board shall be an ordinary overseas worker: Provided, further, 
That at least one (I) 
member each shall come from Visayas and Mindanao. 
Thereafter, the Members of the Board of Directors shall be elected in 
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accordance with the succeeding Section. 
SEC. 8. Election of Members of fhe Board of Directors and Manner 
of Voting. - On the first Tuesday in March of every year 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 (I) week prior to the date of 
the election. In the election of the members of the Board, stockholder shall have 
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the right of cumulative voting as recognized by law. 
SEC. 9. Qualification of the Board of Directors. - 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 (I) or more of 
the following fields: overseas employment promotions and recruitment, banking, 
finance, economics, law or business management: Provided, That no director, 
officer or employee of any other bank shall be eligible as member of the Board 
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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 of per 
diems for every single month shall not exceed the sum of Six thousand pesos 
(P6 , 00 0.0 0). 
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The Board of Directors shall, by a majority of all its members, elect its 
Chairman, Vice-chairman and other officers. Pending the election of its 
Chairman, the President of the Bank shall preside over the meetings of the 
Board of Directors. 
SEC. 10. Powers of the Board of Directors. - The Board of Directors 
shall have the following duties, powers and authority: 
a) To formulate policies necessary to carry out effectively the provisions 
of this Act; 
b) To adopt, amend or change the by-laws as well as such rules and 
regulations as may be necessary for the effective operation of the 
Bank, in conformity with this Act and existing laws. 
c) To prescribe such terms and conditions to govern the granting of loan 
credits, consistent with provisions 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 ad 
similar instruments, or losses arising from other form of frauds; 
9 To compromise or release, in whole or in part, any claim, liability or 
demand for or against the Bank, regardless of the amount involved, 
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under such terms and conditions as it may impose to protect the 
interest of the Bank; 
g) To determine the procedure and requirements for the acquisition of 
properties necessary for the business of the Bank; 
h) To dispose of the 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; 
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i) To provide for the appointment and removal, as well as fix reasonable 
compensation, for its personnel in accordance with existing laws; 
j) To create and establish a Provident Fund for the benefit of its officers 
or employees under such terms and conditions as the Board of 
Directors may fix; 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. 11. President of fhe Bank. -- The Chief Executive of the Bank 
shall be the President who shall be elected by the Board of Directors from 
among themselves. No person shall be elected President of the Bank unless he 
is at least forty (40) years of age, of good moral character and reputation, with at 
least ten (IO) years previous experience in banking, of reputed proficiency, 
expertise and recognized competence in banking or financial management and 
preferably must have had experience as an overseas worker. 
The President of the Bank shall have the following functions: 
a) Execute and administer the policies, measures, orders and 
resolutions approved by the Board of Directors, and direct and 
supervise the operations and administration of the Bank; 
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b) Execute all contracts and enter into all authorized transactions in 
behalf of the Bank; 
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c) Exercise, as Chief Executive Officer, the power of supervision and 
control over decisions or actions of subordinate officers; 
d) Recommend to the Board the appointment, promotion or removal of 
all officers of the Bank with the rank of at least Vice-president; 
e) Appoint, promote or remove employees and officers below the rank of 
Vice-president; 
9 Transfer, assign or reassign officers and personnel of the Bank in the 
interest of the service; 
g) Report periodically to the Board of Directors on the operations of the 
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Bank; and 
h) Delegate any of his powers, duties or functions to any official of the 
Bank, with the approval of the Board of Directors. 
SEC. 12. Ofher Officers and Employees. - The Board of Directors shall 
provide for an organization and staff of officers and employees of the Bank and 
upon recommendation by the President of the Bank, fix their remuneration and 
other emoluments in accordance with existing laws. 
No officer or employee of the Bank subject to Civil Service Law shall be 
dismissed or suspended except as provided by law. 
SEC. 13. Legal Maffers and Cases. - The Bank shall have its own Legal 
Department, the head of which shall be appointed by the Board of Directors 
upon the recommendation of the President. 
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. 14. Bank Audifor. - The Commission on Audit shall be ex-officio 
and/or of the Bank and shall designate a representative to the Bank. 
SEC. 15. Examination of fhe Bank, - The Bank shall be subject to 
supervision and examination by the appropriate department of the Bangko 
Sentral ng Pilipinas. 
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SEC. 16. Inhibition from Board Meeting of Member with Personal 
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Interests. - Whenever any member attending a meeting of the Board of 
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Directors has a personal interest, directly or indirectly, in any given matter 
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resolution of the matter and must retire from the meeting during the deliberation 
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thereon. 
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SEC. 17. Prohibition on Officers and Employees of the Bank. - 
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Except as required by law, or upon order of a court of competent jurisdiction, or 
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express order of the President of the Philippines, or written permission of the 
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client, no officer or employee of the Bank shall reveal to, not allow to be 
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examined, inquired or looked into by any third person, government official, 
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bureau of office, any information relative to details on individual accounts or 
specific banking transactions: Provided, That in respect to deposits of whatever 
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nature, the provisions of any existing law shall apply. 
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This provision shall not apply to the exchange of confidential credit 
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information among government financial institutions or among banks, in 
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accordance with established banking practices or as maybe allowed by law. 
SEC. 18. Borrowings of Directors, Officers, and Employees. - No 
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director, officer or employee of the Bank or any corporation, partnership or 
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company wherein any member of the Board of Directors, officer or employee, 
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and/or their respective relatives within the second degree of consanguinity or 
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affinity, is a director, officer or controlling shareholder, shall either directly or 
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indirectly, for himself or as representative or agent of others, borrow any of the 
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deposits of funds from the Bank, not shall he become a guarantor, endorser or 
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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 of 
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loans to directors, officers and empoyees shall not include loans in the form of 
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fringe benefits granted in accordance with rules and regulations as may 
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prescribed by the Monetary Board of the Bangko Sentral ng Pilipinas. 
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The Bank shall not grant, directly or indirectly, any loan, or credit 
accommodation 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. 19. Disposal of Real Estate and Other Properties. - Real and 
other properties acquired by the Bank in the collection of debts, receivables or 
investment 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 three (3) years after date of their acquisition: Provided, That 
these policies and guidelines are in consonance with those issued by the 
Bangko Sentral ng Pilipinas. 
SEC. 20. Right of Redemption of Foreclosed Property and 
Possession During the Redemption Period. - Within one (1) year form the 
registration of the foreclosure sale of real property, the mortgagor shall have the 
right to redeem the property by paying the principal, interest, charges, 
commissions and all claims of whatever nature of the Bank'outstanding and due 
as of the date of the sale including all the costs and other expenses incurred by 
reason of the foreclosure sale and custody of the property, as well as charges 
and accrued interest. 
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 the property, the same being considered 
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possession. 
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compensation for the interest that would otherwise accrue on the account. 
Neither shall the Bank be obliged to post a bond for the purpose of such 
SEC. 21. Depository of Overseas Workers Funds. - The provisions of 
the existing laws to the contrary notwithstanding, the Bank shall act as official 
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government depository with authority to maintain deposits of the government, 
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particularly with respect to funds intended for or due to overseas workers, 
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subject to rules and regulations as the Monetary Board of the Bangko Sentral ng 
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Pilipinas may prescribe 
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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 effectivity of this 
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Act. 
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SEC. 23. Articles of Incorporations of Charter. - This Act upon its 
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effectivity, shall not for all legal intents and purposes, be the statutory articles of 
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incorporation or charter of the Philippine Overseas Workers Bank. Pursuant 
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thereto, the Bank shall be deemed registered and duly authorized to do 
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business and operate as a commercial Bank as of the date of effectivity of this 
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Act. 
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SEC. 24. By-Laws. - The By-Laws of the Bank for its organizational, 
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functional, and operational government and procedures shall be adopted by the 
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affirmative vote of the stockholders representing a majority of all the subscribed 
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capital stock and entitled to vote, whether paid or unpaid, within one (I) 
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after the effectivity of this Act. The said by-laws shall be subject to certifications 
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by the Monetary Board pursuant to the provisions of Republic Act No. 337, as 
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amended. 
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SEC. 25. Separability Clause. - If any provision of this Act is declared 
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unconstitutional or invalid, such parts or portions not affected thereby shall 
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remain in full force and effect. 
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SEC. 26. Repealing Clause. - All other laws, decrees, executive order, 
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proclamations, rules and regulations or parts thereof inconsistent with any of the 
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provisions of this Act are hereby repealed or modified accordingly. 
SEC. 27. Effectivity. -- This Act shall take effect fifteen (15) days after its 
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publication in the Official Gazette or in at least two (2) newspapers of general 
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circulation. 
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Approved, 
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