AMENDING SECTION 4 OF COMMONWEALTH ACT NO. 83 AS AMENDED BY PRESIDENTIAL DECREE NO. 678

• Number: Presidential Decree No. 1798
• Sections: 4

Preamble

WHEREAS, commercial paper issues are instruments for

mobilizing funds in developed capital markets as well as developing capital

markets;

WHEREAS, commercial paper issuance either through direct

savings investment process or throng financial intermediaries have monetary and

credit implications;

WHEREAS, Presidential Decree No. 573 requiring the

registration of commercial paper issues by the Securities and Exchange

Commission in accordance with rules which said decree requires to be approved by

the Monetary Board of the Central Bank of the Philippines which was then granted

concurrent power of enforcement of the rules; %

WHEREAS, the intention is to infuse into the mere procedural

registration responsibility of the Securities and Exchange Commission the wider

implication of monetary and credit policies of the Monetary Board.

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 that:

Section 1

SECTION 1. The paragraph added by Section 2 of Presidential

Decree No. 678 to Section 4 of Commonwealth Act No. 83 is hereby amended to read

as follows:

“Notwithstanding the provision of the preceding paragraph regarding

exemptions, and any other provision of this Act and all other existing laws,

commercial papers as defined in Section 1 hereof shall be registered by the

Securities and Exchange Commission in accordance with the requirements of full

disclosure in the public interest and rules and regulations on procedural

registration that shall be promulgated by the Securities and Exchange

Commission, after approval by the Monetary Board. Interbank loans may be

exempted from registration as may be necessary in the public

interest.

The Monetary Board is hereby authorized to promulgate rules on the monetary

and credit aspects of commercial paper issues, which may include the imposition

of ceilings on an industry-wide basis on commercial paper issues by any single

issuer. The Monetary Board shall have the power of supervision in the

enforcement of such rules and it may require issuers to submit their financial

statements and other relevant reports to the Central Bank on a regular or

periodic basis.

Section 2

SECTION 2. All laws or regulation inconsistent herewith are

hereby repealed or modified accordingly.

Section 3

SECTION 3. This Decree shall take effect upon approval.

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