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PRESIDENTIAL DECREE NO. 1785
PRESIDENTIAL DECREE NO. 1785 -
CREATING THE EXPORT CREDIT CORPORATION, DEFINING ITS POWERS AND
FUNCTIONS, PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES
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WHEREAS,
the Government encourages, promotes, and develops the export of goods
and services, and the establishment and operation of private
enterprises engaged in the manufacture of capital goods; chanroblesvirtualawlibrary
WHEREAS, the development of the export and capital goods industry is
hampered by the lack of proper credit, guarantee, and insurance
facilities at rates and on terms and conditions which will place the
nation's exports at a competitive level in the international market and
will enable local industries to manufacture capital goods, likewise at
levels competitive with imported goods and services.
WHEREAS, there is a need to establish a government-owned or controlled
corporation to provide the required credit, guarantee, and insurance
facilities at preferential rates and on liberal terms and conditions;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
order and decree the following:cralaw:red
Section 1. Short Title. — This Decree shall be known
as the "Charter of the Export Credit Corporation."
Section 2. Declaration of Policy. — It is the policy
of the State to encourage, promote and develop the export of
manufactured goods, products and other goods and services by extending
credits, guarantees, and insurance coverage at interest rates and
charges and on an internationally competitive basis, in order to attain
a rising level of production and employment, increase foreign exchange
earnings and improve the country's balance of payments, accelerate the
economic growth the development of the nation, and secure to the
Filipino people the benefits of such growth and development.
Section 3. Creation, Name, Domicile and Term. — There
is hereby created a body corporate to be known as the Export Credit
Corporation. Its principal place of business shall be in Metropolitan
Manila and it may establish such offices, agencies, branches,
subsidiaries and correspondents in the Philippines or abroad as its
business operations may require. It shall have a term of fifty (50)
years from the effectivity hereof, which shall be deemed renewed for an
equal period, unless sooner dissolved by law.
Section 4. Purposes. — The Corporation shall have the
following purposes:cralaw:red
a. To promote and develop the export of goods and
services;chanroblesvirtualawlibrary
b. To foster the development of capital goods
industry; and
c. To provide the facility for the grant of direct
credits and loans, financial guarantees and insurance coverage to
exporters and financial institutions, with reference to their provision
of credits or loans in support of the export of Philippine goods and
services at interest rates and charges and on a competitive basis.
Section 5. Powers and Functions. — The Corporation
shall have the following powers and functions: chanroblesvirtualawlibrary
a. To extend direct loans or other credit facilities
in Philippine or foreign currency to any persons and entities in
respect of the financing of export contracts and foreign trade
transactions including the sale of domestically manufactured capital
goods at competitive interest rates and charges;chanroblesvirtualawlibrary
b. To give or make arrangements for the giving of
guarantees covering political and commercial risk to, or for the
benefit of, persons or entities engaged in business in the Philippines,
banks and financial institutions, in connection with the financing of
export, manufacture, treatment of goods, the rendering of services, or
any other matter which in the determination of the Corporation promotes
the export trade and the import-substitution industry. The guarantee,
given or arranged as herein provided, shall be on such terms and
conditions as the Corporation may deem proper; provided, that the
Corporation may shall not give, or make arrangement for, performance
guarantees;chanroblesvirtualawlibrary
c. To make grants to, or subsidize, in Philippine or
foreign currency, any persons or entities for the purpose of
supplementing any interest receivable or received by them as
consideration for their provision of such facilities as aforementioned,
and for persons or entities engaged in business in the Philippines to
purchase, discount, rediscount, sell and negotiable, with or without
its indorsement, notes, drafts, bills of exchange, acceptances,
including banker's acceptances and other evidences of indebtedness in
connection therewith;chanroblesvirtualawlibrary
d. To enter into contracts of insurance with any
persons or entities to insure them against the risk of war,
expropriation, restrictions on remittances and such other risks as may
appear to the Corporation to be non-commercial risks, in respect of, or
in connection with, export contracts or transactions;chanroblesvirtualawlibrary
e. To act as agent for any persons, entity,
government or agency of a government in respect of or in connection
with export contracts or transactions;chanroblesvirtualawlibrary
f. To issue bonds and to borrow money from local
and/or foreign sources;chanroblesvirtualawlibrary
g. To invest its funds in any activity related to
export and import-substitution and in any bonds or securities issued
and/or guaranteed by the Government of the Philippines;chanroblesvirtualawlibrary
h. To purchase, hold, alienate, mortgage, pledge or
otherwise dispose of the shares of the capital stock of, or any bond,
security of other corporations or associations of this or any other
country; and while the owner of said stock, to exercise all the rights
of ownership, including the right to vote thereon;chanroblesvirtualawlibrary
i. To acquire assets, real or personal, or interest
therein, and encumber or otherwise dispose the same as it may deem
proper and necessary in the conduct of its business;chanroblesvirtualawlibrary
j. To determine its organizational structure, and the
number and salaries of its officers and employees;chanroblesvirtualawlibrary
k. To establish and maintain offices, branches,
agencies, subsidiaries, correspondents or any other units within or
outside the Philippines as may be needed by the Corporation and
reorganize or abolish the same as it may deem proper;chanroblesvirtualawlibrary
l. To adopt By-Laws for the regulation of its
proceedings; prescribing the duties of officers and employees of the
Corporation; delegating to the President the conduct of any business of
the Board of Directors; fixing the salaries, fees or other remuneration
to be paid to the Directors, and generally, for the conduct and
management of its activities;chanroblesvirtualawlibrary
m. To sue and be sued.
n. To adopt and use a corporate seal which shall be
judicially noticed;chanroblesvirtualawlibrary
o. To perform such acts and exercise such functions
as may be necessary for the attainment of the purposes and objectives
herein specified;chanroblesvirtualawlibrary
p. To promulgate such rules and regulations as may be
necessary to carry out the purposes of this Decree; and
q. To perform such other functions as may be provided
by law.
Section 6. Restriction on powers. — The Corporation
is not a bank within the meaning of Republic Act Numbered Three Hundred
thirty-seven (General Banking Act), as amended, and as such, can not
perform commercial banking functions, except as provided herein.
Section 7. Capital Stock. — The Corporation shall
have an authorized capital stock of TEN BILLION PESOS (P10,000,000,000)
divided into ten million (10,000,000) shares with a par value of
P100,000 per share, of which P200,000,000 shall be originally
subscribed and paid for by the Republic of the Philippines. The
remaining shares of stock may be subscribed and paid for by the
Republic of the Philippines or by government financial
institutions. chanroblesvirtualawlibrary
Section 8. Governing Body. — The Corporation shall be
governed by a Board of Directors which shall be composed of eleven (11)
members as follows:cralaw:red
a. The Minister of Finance;chanroblesvirtualawlibrary
b. The Minister of Industry;chanroblesvirtualawlibrary
c. The Minister of Trade;chanroblesvirtualawlibrary
d. The Director General of the National Economic
Development Authority;chanroblesvirtualawlibrary
e. The Minister of Budget;chanroblesvirtualawlibrary
f. The Solicitor General;chanroblesvirtualawlibrary
g. The Governor of the Central Bank of the
Philippines;chanroblesvirtualawlibrary
h. The Chairman of the Board of Governors of the
Development Bank of the Philippines;chanroblesvirtualawlibrary
i. The Chairman of the Board of Directors of the
Philippine National Bank;chanroblesvirtualawlibrary
j. The President of the Corporation to be appointed
by the President of the Philippines for terms of five (5) years;chanroblesvirtualawlibrary
k. One representative from the private sector to be
appointed by the President of the Philippines for terms of five (5)
years;chanroblesvirtualawlibrary
In making the appointment of the President of the Corporation and the
representative from the private sector, the President shall base his
selection on the integrity, experience and expertise of the
appointee. chanroblesvirtualawlibrary
The Minister of Finance and the Minister of Industry shall sit
respectively as ex officio Chairman and Vice Chairman of the Board. The
other officers of the Corporation shall be appointed by the Board.
Section 9. Duties and Responsibilities of the
President. — The President who shall be the chief executive of the
Corporation shall have the following duties and responsibilities:cralaw:red
a. To prepare the agenda for the meetings of the
Board, and to submit for the consideration of the Board such policies
and measures as he believes necessary to carry out the purposes and
objectives of this Decree;chanroblesvirtualawlibrary
b. To execute, administer and implement the policies
and measures approved by the Board;chanroblesvirtualawlibrary
c. To direct and supervise the operations and
administration of the Corporation;chanroblesvirtualawlibrary
d. To represent the Corporation in all dealings with
other offices, agencies and instrumentalities of the Government and
with all persons and other entities, public or private, domestic or
foreign; and
e. To exercise such other powers and perform such
other duties provided in the by-laws and as may be vested in him by the
Board.
Section 10. Loans. — The Corporation is hereby
authorized to contract loans, credits, in any convertible foreign
currency, and incur indebtedness from time to time from foreign
governments or any international financial institutions or fund
sources, or any other entities, on such terms and conditions, it shall
deem appropriate for the accomplishment of its purposes and to enter
into and execute agreements and other documents specifying such terms
and conditions. chanroblesvirtualawlibrary
The Republic of the Philippines, through the President of the
Philippines or his duly authorized representative, may guarantee,
absolutely and unconditionally, as primary obligor and not as surety
merely, the payment of the loans, credits and indebtedness issued up to
the amount herein authorized, which may be over and above the amount
which the President of the Philippines is authorized to guarantee under
Republic Act Numbered sixty-one hundred forty-two, as amended, as well
as the performance of all or any of the obligations undertaken by the
Corporation in the territory of the Republic of the Philippines
pursuant to loan agreements entered into with foreign governments or
any international financial institutions or fund source.
Section 11. Issuance of Bonds. — The Corporation,
upon the recommendation of the Minister of Finance and with the
approval of the President, is hereby authorized to issue bonds or other
securities, in Philippine or foreign currency, whether tax-exempt or
not, which may be guaranteed by the Government, to finance the export
and capital goods industries.
Section 12. General Counsel. — The Solicitor General
shall perform the duties of General Counsel or the Corporation. Any
provision of law to the contrary notwithstanding, the Solicitor General
and such personnel as may be necessary to assist him in the performance
of his duties and responsibilities shall receive such allowances as
shall be fixed by the Board.
Section 13. Privileges and Incentives. — The
Corporation shall be entitled to all such privilege and incentives as
are or may be granted by law to private enterprises engaged in the
export and capital goods industries.
Other government offices and other government-owned or controlled
corporations shall extend whatever assistance may be needed by the
Corporation or any of its branches, offices and subsidiaries, including
the detail of its officials and employees to the Corporation or any of
its subsidiaries on full-time or part-time basis under arrangements
satisfactory to the Corporation or any of its subsidiaries and the
government office or corporation concerned. Said officials and
employees, as well as the directors of the Corporation and its
subsidiaries, may receive allowances and other emoluments,
notwithstanding the provision of any law to the contrary.
The employees of the Corporation shall be entitled to all the
retirement and insurance benefits and leave privileges of government
employees.
Section 14. Tax exemptions. — The Corporation shall
be exempt from all taxes, duties, fees, imposts and all other charges,
except corporate income tax, imposed directly or indirectly by the
Republic of the Philippines, its provinces, cities, municipalities and
other government agencies and instrumentalities.
Section 15. Exemption from Civil Service Law. — The
offices and employees of the Corporation shall not be subject to the
Civil Service Law, rules and regulations, and shall likewise be exempt
from the regulations of the Wage and Position Classification Office.
Section 16. Non-applicability of the laws on Usury
and Uniform Currency, and certain provisions of the Insurance Code. —
The provisions of Republic Act Numbered two thousand five hundred
sixty-six (Usury Law), as amended; Republic Act Numbered five hundred
twenty-nine (Uniform Currency Law), as amended; and Chapters III, IV,
and VIII, of Presidential Decree No. 612 (The Insurance Code) shall not
apply to the operation and activities of the Corporation.
Section 17. Access to Rediscounting Facilities of the
Central Bank. — The Corporation shall have access to the rediscounting
facilities of the Central Bank under the most favorable term available
for any entity under Central Bank rules and regulations.
Section 18. Appropriations. — For the initial funding
requirements of the Corporation, the sum of TWO HUNDRED MILLION PESOS
(P200,000,000.00) is hereby set aside and appropriated from the General
Funds not otherwise appropriated.
Section 19. Reports. — The Corporation shall, within
three (3) months after the end of every fiscal year, submit its annual
report to the President of the Philippines. It shall likewise submit
such periodic or other reports as may be required of it from time to
time.
Section 20. Separability Clause. — Should any
provision of this Decree be held unconstitutional, no other provision
hereof shall be affected thereby.
Section 21. Repealing Clause. — All laws, decrees,
executive orders, administrative orders, rules and regulations
inconsistent herewith are hereby repealed, amended or modified
accordingly.
Section 22. Effectivity. — This Decree shall take
effect immediately.
Done in the City of Manila,
this 15th day of January, in the year of Our Lord, nineteen hundred and
eighty-one.
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