Capitalization of National Home Mortgage Finance Corporation (NHMFC).
Section 6
SEC. 6. Capitalization of National Home Mortgage Finance Corporation (NHMFC). - The authorized capital stock of the NHMFC is hereby increased from Five hundred million pesos (P500,000,000) to Five billion five hundred million pesos (P5,500,000,000) to expand its leveraging capability based on the volume of mortgage loans being serviced, to improve its profitability by reducing the average cost of its funds made available for home-lending programs, and to enable the NHMFC to maintain the debt-to-equity ratio of 10:1. Thus, Section 3 of Presidential Decree No. 1267 is hereby amended to read as follows: "Sec. 3. Capitalization. - The Corporation shall have an authorized capital stock of Five billion five hundred million pesos (P5,500,000,000) divided into five million five hundred thousand (5,500,000) shares of common stocks with a par value of One thousand pesos (P1,000) per share, to be fully subscribed and paid by the Government of the Republic of the Philippines." "There shall be a continuing annual appropriation to be remitted to the Corporation starting from calendar year 1995, and subsequently thereafter until the entire authorized capital stock shall have been fully paid: Provided, however, That the National Government loan relent to the corporation in the amount of US$76.73 Million under the World Bank Financed Housing Sector Project is hereby converted to equity."