Preamble
WHEREAS, the limitations on the purchase discount rates of finance companies on transactions involving the assignment of credit or the purchase of installment papers, accounts receivable and other evidences of indebtedness, are fixed by law under Section 5 of the Financing Company Act; WHEREAS, there is a need to adopt a more flexible policy on the purchase discounts, fees, and other charges of financing companies that would be more responsive to the requirement of changing economic and social conditions; WHEREAS, it is desirable and necessary that the Central Bank of the Philippines, as the government agency charged with the responsibility of fostering monetary, credit and exchange condition conducive to a balanced and sustainable growth of the economy, be vested with the power to regulate change or modify, in coordination with the Securities and Exchange Commission, the purchase discount rates, fees and other charges of finance companies in the same manner that it has legal authority to regulate the interest rate and other charges that may be collected by banks and other financial intermediaries; 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: