Home Guaranty Corporation.
SEC. 4. Home Guaranty Corporation. - The Home Insurance and Guaranty Corporation is hereby renamed as the Home Guaranty Corporation, hereinafter referred to as the Corporation, which shall have its principal office in Metropolitan Manila and shall exist for a period of fifty (50) years from December 15,2000. The Corporation may establish such offices, agencies, subsidiaries or branches anywhere in the Philippines as its operations would require and its Board of Directors would determine.
Corporate Powers and Functions.
SEC. 5. Corporate Powers and Functions. - The Corporation, in addition to the regular powers and functions provided under Section 36 of the Corporation Code, shall have the following powers and functions, subject to the limitations hereinafter provided:
To promote homebuilding and land ownership, giving primary preference to the homeless and underprivileged sectors of the society;
To guaranty the payment in favor of any natural or juridical person, of any and all forms of mortgages, loans and other forms of credit facilities and receivables arising from financial contracts exclusively for residential purposes and the necessary support facilities thereto;
To assist private developers to undertake socialized, low, and medium-cost mass housing projects by encouraging private funds to finance such housing projects through a viable system of long-term mortgages, guaranties and other incentives;
To pursue the development and sustainability of a secondary mortgage market for housing as the primary strategy to encourage private sector participation in housing finance. The Corporation shall undertake such programs and measures using the guaranty cover as enhancement to encourage trading by the public in a secondary market for housing mortgages, bonds, debentures, notes and securities;
To underwrite, purchase, own, sell, mortgage or otherwise dispose of stocks, bonds, debentures, securities and other evidence of indebtedness issued in connection with the powers enumerated in this Act: Provided, That, it shall not engage in direct mortgage lending activities;
To borrow money and/or to issue bonds, debentures, securities, collaterals, notes, and other obligations in local currencies with the approval of the President of the Philippines after consultation with the Monetary Board of the Bangko Sentral ng Pilipinas, and in foreign currencies, here or abroad, with the approval of the President of the Philippines in consultation with the Monetary Board of the Bangko Sentral ng Pilipinas and the Secretary of Finance, but in no case to exceed at anyone time the aggregate amount of the principal obligations of all mortgages and accounts guaranteed under this Act. These bonds and other obligations shall be issued under such terms and conditions as provided in this Act and the rules and regulations prescribed by the Corporation, and in such manner as may be stipulated therein and shall bear such rate of interest as may be fixed by the Corporation. Such obligations shall be secured by the assets of the Corporation including the stocks, bonds, debentures and other securities underwritten, purchased or held by it under the provisions of this Act. Such obligations may be issued and offered for sale at such price as the Corporation may determine, and shall be exempt from taxation as hereinafter provided as to principal and interest, except estate, inheritance, and gift taxes. Bonds issued by the Corporation shall be registered at the request of the holder thereof under such rules and regulations as may be prescribed by the Corporation;
To promote housing by the aided self-help method whereby families with some outside aid build their own houses with their own labor; to provide technical guidance to such families; to guaranty loans to such families on first liens on house and land with such other security and conditions as the Corporation shall determine, providing at least for ultimate recovery of principals; and to do all other activities as are relevant and significant in such a program of aided self-help for housing;
To adopt, alter, and use a corporate seal; to enter into contracts; and to sue and be sued in any court of competent jurisdiction;
To acquire, purchase, own, hold, manage, administer, operate, develop, lease, pledge, mortgage, exchange, sell, transfer or otherwise dispose of, in any manner permitted by law, real and personal property with every kind and description, monies and funds, or any interests therein as may be necessary to carry out the purposes and objectives of the Corporation; and
To do any and all acts and things and to exercise all powers which may be necessary or convenient to the accomplishment or furtherance of its purposes and objectives, or which a natural person can do and exercise and which may now be or hereafter be authorized by law.
Authorized Capital Stock.
SEC. 6. Authorized Capital Stock. - The Corporation shall have an authorized capital stock of Fifty billion pesos (P50,000,000,000), divided into fifty million (50,000,000) shares of common stock with a par value of One thousand pesos (P1,000) per share.
Out of the increase in its authorized capital stock of Forty-seven billion five hundred million pesos (P47,500,000,000), the amount of Seven billion five hundred million pesos (P7,500,000,000) shall be subscribed and paid in cash by the Government of the Republic of the Philippines upon the approval of this Act, and accordingly the said amount of Seven billion five hundred million pesos (P7,500,000,000) is hereby appropriated out of the funds of the National Treasury, not otherwise appropriated. Succeeding National Government equity to the Corporation shall be included in the annual General Appropriations Act.
No portion of the authorized capital stock of the Corporation shall accrue to any agency or instrumentality of the National Government, including government-owned or controlled corporations.
Use of Net Worth.
SEC. 7. Use of Net Worth. - The use of the net worth of the Corporation shall be subject to the following limitations:
At least forty percent (40%) shall be allocated exclusively for socialized housing, to be distributed equitably among all the regions, to the extent practicable;
At least thirty percent (30%) shall be allocated exclusively for low-cost housing, to be distributed equitably among all the regions, to the extent practicable;
At least twenty percent (20%) shall be allocated exclusively for medium-cost housing, to be distributed equitably among all the regions, to the extent practicable; and
Not more than ten percent (10%) may be allocated for open housing.
Investments, if any, by the Corporation in any establishment or enterprise, whether public or private, shall be subject to the same limitation, herein above provided as well as those specified in Chapter III of this Act.
Board of Directors.
SEC. 8. Board of Directors. - The Corporation shall be governed and its activities be directed, controlled and managed by a Board of Directors, hereinafter referred to as the Board, which shall be composed of seven (7) members, as follows:
The Secretary of the Department of Finance as the ex officio Chairman;
The Chairman of the Housing and Urban Development Coordinating Council (HUDCC), as ex officio Vice Chairman;
The Director General of the National Economic and Development Authority (NEDA), as ex officio member;
The President of the Corporation, as member; and
Three (3) other members to be appointed by the President of the Philippines, who shall serve for a term of five (5) years: Provided, That the person appointed shall be of good moral character, of unquestionable integrity, of known probity and patriotism and with expertise and experience of at least ten (10) years in business, finance and the professions: Provided, further, That in the event of a vacancy, the successor appointed to fill the same shall serve only the unexpired portion of the term of the member he succeeds to.
The decisions of the Board shall be made by a vote of the majority of all its members.
The Chairman of the Corporation shall preside over meetings of the Board of Directors. The Vice Chairman of the Board shall assist the Chairman and act in his stead in case of the latter's absence or incapacity.
The Chairman, Vice Chairman, and the Members of the Board shall be entitled to per diem for each meeting actually attended at such amount as may be fixed by the Board in accordance with existing laws, rules and regulations.
Powers, Functions and Duties of the Board of Directors.
SEC. 9. Powers, Functions and Duties of the Board of Directors. - The Board shall have the following powers, functions and duties:
To adopt the bylaws of the Corporation and to revise or amend the same as may be expedient;
To direct the management, operations and administration of the Corporation;
To authorize such expenditures by the Corporation as are in the interest of the effective administration and operations of the Corporation;
To formulate, revise or adjust periodically all policies, plans and projects, and to promulgate the necessary rules and regulations and manuals of procedures for the effective implementation of the provisions of this Act, in any event to conform to the prevailing economic and financial conditions: Provided, That anything contained herein to the contrary notwithstanding, all such policies, rules and regulations, manuals of procedures, on ceilings and limitations shall be subject to the concurrence of the Monterey Board of the Bangko Sentral ng Pilipinas
To create offices or positions necessary for the efficient management, operation and administration of the Corporation: Provided, That all positions in the Home Guaranty Corporation (HGC) shall be governed by a compensation and position classification system and qualifications standards approved by the Corporation's Board of Directors based on a comprehensive job analysis and audit of actual duties and responsibilities: Provided, further, That the compensation plan shall be comparable with the prevailing compensation plans in the private sector and which shall be exempt from Republic Act No. 6758, otherwise known as the Salary Standardization Law, and from other laws, rules and regulations on salaries and compensations; and to establish a Provident Fund and determine the Corporation's and the employee's contributions to the Fund; and
To exercise such other powers as may be necessary and proper for the effective enforcement of this Act and to accomplish the purposes for which the Corporation was organized; and to do and perform any and all acts and deeds as are necessary and incidental to the attainment of the purposes of the Corporation.
President of the Corporation.
SEC. 10. President of the Corporation. - The President of the Corporation shall be appointed by the President of the Philippines for a term of five (5) years unless sooner removed for cause. He shall be a person of good moral character, of unquestionable integrity, of known probity and patriotism, and with expertise and experience of at least ten (10) years in business, finance and the professions. He shall receive such compensation, allowances and other emoluments as may be determined by the Board.
Powers and Duties of the President.
SEC. 11. Powers and Duties of the President. - The President shall have the following powers and duties:
To prepare the agenda for meetings of the Board, and to submit for its consideration the policies and measures which are necessary to carry out the purposes and provisions of this Act;
To execute and administer the policies and measures approved by the Board;
To represent the Corporation in all dealings with other offices, agencies and instrumentalities of the Government and with all persons and entities, public or private, domestic or foreign; and
To exercise such other powers, functions, and duties as may be delegated by the Board.
Executive Vice President and General Manager of the Corporation.
SEC. 12. Executive Vice President and General Manager of the Corporation. - The Executive Vice President, who shall be the General Manager of the Corporation, shall be appointed by the Board of Directors. He shall act as President of the Corporation in the latter's absence.
CHAPTER IIICREDIT GUARANTY
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
