Guide to the Magna Carta for Micro Small and Medium Enterprises

5. formulate means and methods of accepting alternative collateralsand implementing alternative loan evaluation models;6. apply for, receive, and accept grants and donations from sourceswithin and outside the country;7. hold, own, purchase, acquire, sell, mortgage, dispose or otherwiseinvest or re-invest in stocks, bonds, treasury bills, debentures,securities and similar forms of indebtedness of the Government, itsagencies and instrumentalities or any government financial institution.d) The SB Corporation may also engage in wholesale lending.Rule 11Capitalization and Funding of the SB CorporationSECTION 1. SB Corporation’s authorized Capital Stock.—The SB Corporationshall have an authorized capital stock of Ten billion pesos(Php10,000,000,000.00).a) The initial capital of One billion pesos (Php1,000,000,000.00) shallbe established from a pool of funds to be contributed in the form of equityinvestments in common stock by the Land Bank of the Philippines (LBP)and the Development Bank of the Philippines (DBP), in the amount ofTwo hundred million pesos (Php200,000,000.00) each.b) The Social Security System (SSS) and the Government ServiceInsurance System (GSIS) shall also set aside Two hundred million pesos(Php200,000,000.00) each for the SB Corporation.c) The authorized capital stock of the SB Corporation shall be dividedinto Eighty million (80,000,000) common shares and Twenty million(20,000,000) preferred shares with a par value of One hundred pesos(Php100.00) per share: Provided, That the common shares which havebeen issued, including those issued against the assets of the KKKGuaranty Fund consolidated under the SB Corporation by virtue ofExecutive Order No. 233, series of 2000 and Executive Order No. 19,series of 2001 and including those already subscribed, shall form part ofthe capitalization of the SB Corporation: Provided, further, that holders ofpreferred shares issued under RA No. 6977, as amended, shall have theoption to convert the same into common shares.Sec. 2. Additional Equity Funding. Additional equity funding shall come fromtrust placements of excess and unused funds of existing government agencies,bilateral and multilateral official development assistance funds, subscriptions43