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PD 550 Section 6

PD 550 Section 6

Operating Principles.

Section 6

SEC. 6. Operating Principles. — The operations of the Corporation shall be conducted in accordance with the following principles: The operations of the Corporation shall principally facilitate foreign loan financing of specific projects of domestic entities or enterprises. They may, however, include guarantees and counter guarantees for sign loans made by banks or other financial institutions or other suitable entities in order that the latter may finance specific development projects either by outright ban or guarantees. In considering an application for a guarantee, the Corporation shall pay due regard to the ability of the borrower to obtain guarantee facilities elsewhere on terms and conditions that the Corporation considers reasonable for the recipient, taking into account all pertinent factors; In guaranteeing a loan, the Corporation shall pay due regard to the prospect that the borrower will be in a position to meet its obligations under the loan contract; In guaranteeing a loan, or in underwriting the sale of securities, the corporation shall receive suitable compensation for its risk; The Corporation shall take the necessary measures to ensure that the proceeds of any loan guaranteed by the Corporation are used only for the purposes for which the loan was granted and with due attention to considerations of economy and efficiency; The Corporation shall not guarantee a single borrower in an amount exceeding the Corporation's subscribed capital stock nor shall the aggragate outstanding guarantee obligations of the Corporation exceed fifteen (15) times its subscribed capital stock plus surplus; When payment is made by the Corporation pursuant to a guarantee it has made, the Corporation shall be subrogated to any right, title, claim or cause of action belonging to the creditor; and The Corporation shall be guided by sound banking principles and sound financial management in its operations.

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Other provisions in PD 550

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗ · Data as of July 4, 2026

CitationPD 550 Section 6 (LawPlayer, data as of July 4, 2026)

Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).

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