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

• Number: Presidential Decree No. 1793
• Sections: 4

Preamble

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

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.

Section 2

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Decree are hereby repealed or modified accordingly.

Section 3

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