Guide to the Magna Carta for Micro Small and Medium Enterprises
RA 9501 - DTI
RA 9501 - DTI
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) actual subscription of preferred shares of s<strong>to</strong>ck of <strong>the</strong> SBCorporation; orc) wholesale lending <strong>to</strong> Participating Financial Institutions(PFIS) <strong>for</strong> on-lending <strong>to</strong> MSMEs; ord) purchase/discount of MSMEs receivables; ore) loans granted <strong>to</strong> export, import, <strong>and</strong> domestic traders subject<strong>to</strong> compliance with Section 3 of this Act; orf) subscribe/purchase of liability instruments as may be offeredby <strong>the</strong> SB Corporation.The Bangko Sentral ng Pilipinas shall <strong>for</strong>mulate rules <strong>for</strong> <strong>the</strong> effectiveimplementation of this provision: Provided, That <strong>the</strong> purchase of governmentnotes, securities <strong>and</strong> o<strong>the</strong>r negotiable instruments shall not be deemedcompliance with <strong>the</strong> <strong>for</strong>egoing provisions: Provided, fur<strong>the</strong>r, That <strong>the</strong> BangkoSentral ng Pilipinas shall establish an incentive program <strong>to</strong> encourage lending<strong>to</strong> micro, small <strong>and</strong> medium industries beyond <strong>the</strong> m<strong>and</strong>a<strong>to</strong>ry credit allocation<strong>to</strong> said enterprises, such as possible reduction in bank’s reserve requirement.The MSMED Council shall set up <strong>the</strong> appropriate systems <strong>to</strong> moni<strong>to</strong>rall loan applications of MSMEs in order <strong>to</strong> account <strong>for</strong> <strong>the</strong> absorptive capacityof <strong>the</strong> MSME sec<strong>to</strong>r. The Bangko Sentral ng Pilipinas shall furnish <strong>to</strong> <strong>the</strong>MSMED Council on a quarterly basis comprehensive reports on <strong>the</strong> banks’compliance, noncompliance <strong>and</strong> penalties of <strong>the</strong> above provisions on <strong>the</strong>m<strong>and</strong>a<strong>to</strong>ry credit allocation <strong>for</strong> MSMEs.Lending institutions which are not qualified <strong>to</strong> acquire or hold l<strong>and</strong>sof <strong>the</strong> public domain in <strong>the</strong> Philippines shall be permitted <strong>to</strong> bid <strong>and</strong> take partin sales of mortgaged real property in case of judicial or extra-judicial<strong>for</strong>eclosure, as well as avail of receivership, en<strong>for</strong>cement <strong>and</strong> o<strong>the</strong>r proceedings,solely upon default of a borrower, <strong>and</strong> <strong>for</strong> a period not exceeding five (5) yearsfrom actual possession: Provided, That in no event shall title <strong>to</strong> <strong>the</strong> propertybe transferred <strong>to</strong> such lending institution. If <strong>the</strong> lending institution is <strong>the</strong> winningbidder, it may, during said five (5) year period, transfer its rights <strong>to</strong> a qualifiedPhilippine national, without prejudice <strong>to</strong> a borrower’s rights under applicablelaws.(RA 9501 through Sec. 18 amended Section 13 of RA 6977, as amended byRA 8289, <strong>and</strong> renumbered it as Section 15)16
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