S. No. 3023 H. No 6395 ; Manila Bulletin (August 01, 2016)
REPUBLIC ACT NO. 10881, July 17, 2016
AN ACT AMENDING INVESTMENT RESTRICTIONS IN SPECIFIC LAWS GOVERNING ADJUSTMENT COMPANIES, LENDING COMPANIES, FINANCING COMPANIES AND INVESTMENT HOUSES CITED IN THE FOREIGN INVESTMENT NEGATIVE LIST AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:chanRoblesvirtualLawlibrary
“Sec. 332. No person, partnership, association, or corporation shall act as an adjuster, as herein earlier defined, unless authorized so to act by virtue of a license issued or renewed by the Commissioner pursuant to the provisions of this Code." Sec. 5. Lending Companies. – Section 6 of Republic Act No. 9474, otherwise known as the “Lending Company Regulation Act of 2007”, is hereby amended to read as follows;
“Sec. 6. Citizenship Requirements. – A lending company may be owned up to one hundred percent (100%) by foreign nationals; Provided, however, That where the loan is secured by land, a lending company, more than forty percent (40%) of whose capital is owned by foreign nationals, may bid and take part in any sale of such land as a consequence of such mortgage, avail of enforcement proceedings, take possession, and transfer their rights to qualified Philippine nationals for a period not exceeding five (5) years from actual possession; Provided, further, That title to said land shall not be transferred to such lending companies; Provided, finally, That investments of a lending company shall be in accordance with the provisions of the Constitution.”SEC.6. Financing Companies. – Section 6 of Republic Act No. 8556, otherwise known as the “Financing Company Act of 1998", is hereby amended to read as follows:
“Sec. 6. Form of Organization and Capital Requirements. – Financing companies shall be organized in the form of stock corporations, may be owned up to one hundred percent (100%) by foreign nationals, and shall have a paid-up capital of not less than ten million pesos (P10,000,000.00) in case the financing company is located in Metro Manila and other first class cities, five million pesos (P5,000,000.00) in other classes of cities and two million five hundred thousand pesos(P2,500,000.00) in municipalities: Provided, That the Securities and Exchange Commission may adjust said minimum paid-up levels as it deems warranted by its prudential oversight requirements and consistent with the objectives of this Act: Provided, however, That financing companies duly existing and in operation before the effectivity of this Act shall comply with the minimum capital requirement within one (1) year from the date of the said effectivity: and Provided, further, That where land is concerned, the financing company shall comply with the constitutional provision on foreign ownership of land.”Sec. 7. Investment Houses. – Section 5 of Presidential Decree No. 129, as amended by Republic Act No. 8366, otherwise known as “The Investment Houses Law”, is hereby amended to read as follows:
“Sec. 5. Citizenship Requirements. – An Investment House may be owned up to one hundred percent (100%) by foreign nationals. Foreign nationals may become members of the board of directors to the extent of the foreign participation in the equity of said enterprise.”Sec. 8. Regulatory Powers of the Bangko Sentral ng Pilipinas. – Nothing in this Act shall preclude the Bangko Sentral Ng Pilipinas from exercising its powers and authorities over financing companies, lending companies and investment houses pursuant to existing laws.
(Sgd.) FELICIANO BELMONTE JR. Speaker of the House of Representatives | (Sgd.) FRANKLIN M. DRILON President of the Senate |
(Sgd.) MARILYN B. BARUA-YAP Secretary General House of Representatives | (Sgd.) OSCAR G. YABES Secretary of the Senate |