Presidential Decree No. 653 (PD 653) — Amending Section 13 of Republic Act Numbered Thirty-Five Hundred and Ninety-One, as Amended, Entitled "An Act Establishing the Philippine Deposit Insurance Corporation, Defining Its Powers and Duties and for Other Purposes".
Presidential Decree No. 653 (PD 653) — Amending Section 13 of Republic Act Numbered Thirty-Five Hundred and Ninety-One, as Amended, Entitled "An Act Establishing the Philippine Deposit Insurance Corporation, Defining Its Powers and Duties and for Other Purposes".
Data as of July 4, 2026 · Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗
WHEREAS, the Philippine Deposit Insurance Corporation, as
insurer of bank deposits, is entrusted with the vital role of protecting
depositors from loss resulting from bank closures and in helping
develop a sound and stable banking system;
WHEREAS, the Corporation is empowered under its Charter to
borrow from the Central Bank for insurance purposes such amounts not
exceeding the aggregate amount of P100 million at any one time;
WHEREAS, the Corporation has been resorting to its authority
to borrow from the Central Bank in the payment of insured
deposits;
WHEREAS, considering that deposits covered by the
Corporation have considerably increased in recent years there is a need
to remove the ceiling on the Corporation's borrowings from the
Central Bank;
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 following as part of the law of the
land:
SECTION 1. Section 13 of Republic Act No. 3591 is hereby
amended to read as follows:
"SEC. 13. The Corporation is authorized to borrow from
the Central Bank of the Philippines and the Central Bank is authorized
and directed to loan the Corporation on such terms as may be fixed by
the Corporation and the Central Bank, such funds as in the judgment of
the Board of Directors of the Corporation are from time to time required
for insurance purposes including those provided for in Section 12 (c)
of this Act: Provided, That the rate of interest to be charged
in connection with any loan made pursuant to this Section shall not be
less than the current average rate on outstanding marketable and
non-marketable obligations of the Republic of the Philippines as of the
last day of the month preceding the making of such loan. Any such loan
shall be used by the Corporation solely in carrying-out its function
with respect to such insurance."
SEC. 2. This Decree shall take effect immediately.
Done in the City of Manila this 1st day of February, in the year
of Our Lord, nineteen hundred and seventy-five.
(Sgd.)
FERDINAND E. MARCOS
President
Republic of the Philippines
By the President:
(Sgd.)
ROBERTO V. REYES
Acting Executive Secretary
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
