AMENDING SECTION 5 OF REPUBLIC ACT NO. 5980, AS AMENDED, OTHERWISE KNOWN AS THE FINANCING COMPANY ACT.”

WHEREAS, the Central Bank of the Philippines has been vested
with the power to prescribe in consultation with the Securities and Exchange
Commission, or change the purchase discount rates, fees and other charges of
finance companies;

WHEREAS, there is a need to vest upon the Central Bank of
the Philippines the express authority to adopt a more flexible policy on such
purchase discount rates, fees and other charges of finance companies that would
be more responsive to the requirements of changing economic and social
conditions.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution, do hereby
decree and order the amendment of Republic Act No. 5980, as follows:

SECTION 1. The first paragraph of Section 5 of Republic Act
No. 5980 is hereby amended to read as follows:

“The Monetary Board of the Central Bank of the Philippines is hereby
empowered, in consultation with the Securities and Exchange Commission, to
prescribe the maximum rate or rates of purchase discounts, fees, service and
other charges of financing companies, and to change, eliminate or grant
exemptions from or suspend the effectivity of such rate(s) whenever warranted by
prevailing economic and social conditions.

SEC. 2. The provisions of laws, decrees, orders, rules and
regulations or parts thereof which are inconsistent with the provisions of this
Decree are hereby repealed or modified accordingly.

SEC. 3. This Decree shall take effect immediately.

Done in the City of Manila this 16th day of January in the year of Our Lord
nineteen hundred and eighty-one.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JUAN C. TUVERA
		Presidential Executive Assistant

 

Vol. 25, Vital Documents, Presidential Decree 1980-1981