Presidential Decree No. 450 (PD 450) — Amending Further Section Five (A) of Republic Act Numbered Three Thousand Seven Hundred Seventy-Nine, as Amended Otherwise Known as "The Savings and Loan Association Act."
WHEREAS, savings and loan associations have
proved to be effective instruments in encouraging the savings habit of
the people, especially among the low- and middle-income groups and in
providing additional credit facilities to households, consumers,
small-scale entrepreneurs and homebuilders;
WHEREAS, in addition to catering to the
credit needs of households by providing personal finance and long-term
financing for home building and development, stock savings and loan
associations should also be harnessed to help in the financing of
agricultural projects, as envisioned in the Land Reform Program;
NOW, THEREFORE, I, FERDINAND E. MARCOS, by
virtue of the powers in me vested by the Constitution and in order to
help effect the desired changes and reforms in the social and economic
structure of our society, do hereby order and decree the amendment of
Republic Act No. 3779, as amended, as follows:
SECTION 1. Subsection (a) of Section five of
Republic Act Numbered Three thousand seven hundred seventy-nine, as
amended, is hereby amended to read as follows:
"(a) To grant loans of not exceeding the amount deposited by the
borrower plus his four months, salary or regular income in the case of a
permanent employee or wage earner, or seventy per cent of the fair
market value of any property acceptable as collateral on first mortgage
that he may put up by way of security: Provided, That no loan
shall have a maturity date of more than three years, except loans on the
security of unencumbered real estate for the purpose of home building
and home development which may be granted with maturities not exceeding
twenty years and medium or long-term loans to finance agricultural
projects, subject to regulations prescribed by the Monetary Board: Provided,
further, That in the case of a borrower who is a permanent
employee or wage earner, the treasurer, cashier, or paymaster of the
office employing him is authorized, the provisions of any existing law,
rule and regulation to the contrary notwithstanding, to make deductions
from his salary, wage or income pursuant to the terms of his loan, to
remit deductions to the savings and loan association, and to collect
such reasonable fee for his services as may be authorized by rules
promulgated by the Monetary Board."
SEC. 2. All Acts and parts of Acts inconsistent with the
provisions of this Decree are hereby repealed, amended or modified.
SEC. 3. This Decree shall take effect immediately.
Done in the City of Manila, this 10th day of May, in the year
of Our Lord, nineteen hundred and seventy-four.
(Sgd.) FERDINAND E.
MARCOS
President of the Philippines
By the President:
(Sgd.) ALEJANDRO
MELCHOR
Executive Secretary
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
