Definition of Terms.
Section 3
SEC. 3. Definition of Terms. — For purposes of this Act the following definitions shall apply: "Corporation" shall mean the Philippine Export Credit Insurance and Guarantee Corporation created under this Act. "Board" shall mean the Board of Directors of the Corporation. "Capital or Insurance Fund" shall mean the capital of the Corporation from which no disbursement shall made until after the Corporation shall have exhausted every other available financial resource and every possibility of borrowing from financial institutions in accordance with this Act. "Credit Risks" shall mean possible non-payment of credit granted to a foreign customer by the insured in connection with an export transaction resulting from or occasioned by circumstances, happenings or events which are outside or beyond the control of the insured as follows: Insolvency or protracted default of the foreign customer; Governmental action under circumstances not due to the fault of the buyer which prevents the transfer of payment to exporters; New import or export licensing restrictions the country of the foreign customer or of the insured; Moratoria, war, revolution, civil disturbances, similar circumstances which prevent the payment of accepted goods and/or services; and Such other risks connected with export transactions on deferred payment, except again risks of devaluation or changes in the exchange rate and against risks that are normally insured with commercial insurers licensed to do business in the Philippines such as fire, marine, casualty accident, fidelity, surety, and physical damage "Export Credit Agency" shall mean a corporation commission, board, agency of a government, or body incorporated or established in any country having purposes similar to those of the Corporation. "Export Credit Insurance" shall mean a contract of insurance entered into by the corporation with persons, natural or juridical, engaged in transactions involving goods and/or services exported or contracted to be exported for losses attributable to the occurrence of any of the credit risks defined in paragraph (d) above. "Export Transaction" shall mean any transaction involving: (i) the export of goods out of the Philippines; (ii) the manufacture, treatment or servicing of goods for, or the sale or leasing of goods to a foreign customer; (iii) the sale or licensing of any right in a patent, trademark, or copyright to a foreign customer; or (iv) the rendering to a foreign customer of any managerial, construction, technological, marketing or other services. "Foreign Affiliate" shall mean a person, entity, association or corporation carrying on business outside the Philippines that is directly or indirectly controlled by the insured, or vice-versa. "Foreign Customer" shall mean a, person or any entity, corporation, or organization carrying on business or other activities outside the Philippines, and may include a foreign government. "Foreign Government" shall mean the government of a Country, other than the Philippines, or of any political subdivision or agency thereof. "Guarantee" shall mean an undertaking by the Corporation to pay the bank or creditor of an insured exporter for money advanced or loans granted to said exporter against export credit instruments that are not paid at maturity. "Insured' shall mean any citizen of the Philippines or corporation or partnership or other entity organized under existing Philippine laws who has entered into a contract of insurance with the Corporation covering an export transaction with, a foreign customer, in accordance with the provisions of this Act. "Instrument" shall mean a promissory note, bill of exchange bond, debenture, or any other evidence of indebtedness payable by a foreign customer and, in case the customer is a foreign government, includes an agreement to pay. "Technical Reserve" shall mean all the available funds kept in a separate account out of which claims for losses will be paid. "Working Fund" shall mean the account to which all investment incomes, premium incomes, and all other incomes shall be credited and against which all operating costs and other expenses, including claims paid, shall be debited.