AMENDING SECTION 1988 OF ACT NO. 2711, AS AMENDED, OTHERWISE KNOWN AS THE ADMINISTRATIVE CODE

WHEREAS, the Philippine Postal Savings Bank was established
by the Government at a time when the number of existing banking
institutions was unable to provide the necessary banking facilities for
the safekeeping and investment of small savings, especially in the rural
areas;

WHEREAS, over the years, private banking institutions of
varying types and sizes have increased in number, and at present more
than meet the banking needs of both rural and urban communities; and

WHEREAS, it is the declared policy of the Government to
move out of areas of businesses where it has pioneered whenever the same
could be amply served by private entrepreneurs;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution as
Commander-in-Chief of the Armed Forces of the Philippines, and pursuant
to Proclamation No. 1081, dated September 21, 1972, and General Order
No. 1, dated September 22, 1972, as amended, and in order to effect the
desired changes and reforms in the social, economic, and political
structure of our society, do hereby order and decree the amendment of
Act No. 2711, as amended, as follows:

SECTION 1. Section one thousand nine hundred eighty-eight of
the Administrative Code is hereby amended to read as follows:

“SEC. 1988. Location of the Bank. — The Central
office of the Philippine Postal Savings Bank shall be in Manila and the
Director of Posts shall establish, maintain and discontinue postal
savings banks and branches thereof in such places as he shall deem
proper: Provided, however, That postal savings banks and
branches thereof shall not be established or maintained in places where
banking services are already available: Provided, further, That
within one year from the date of effectivity of this Act, existing
postal savings banks shall be discontinued in places already served by
banks whether private or government-owned: And, provided,
finally, That within three years from the said date, all operations
of the bank shall be completely discontinued and its remaining assets
and liabilities shall be transferred to the Philippine National Bank or
to any other appropriate existing government bank.”

SEC. 2. This Decree shall take effect immediately.

Done in the City of Manila, this 29th day of January, in the year
of Our Lord, nineteen hundred and seventy-three.