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

• Number: Presidential Decree No. 121
• Sections: 3

Preamble

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 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."

Section 2

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.

(Sgd.) FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.) ALEJANDRO MELCHOR

Executive Secretary

[*] Amended by Presidential

Decree No. 241.