J.A.B. Bulao & Associates

RA 9474:  AN ACT GOVERNING THE ESTABLISHMENT, OPERATION AND REGULATION OF LENDING COMPANIES (22 MAY 2007)

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

SECTION 1. Title. – This Act shall be known as the “”Lending Company Regulation Act of 2007″”.

SEC. 2. Declaration of Policy. – It is hereby declared the policy of the State to regulate the establishment of lending companies and to place their operation on a sound, efficient and stable condition to derive the optimum advantages from them as an additional source of credit; to prevent and mitigate, as far as practicable, practices prejudicial to public interest; and to lay down the minimum requirements and standards under which they may be established and do business.

SEC. 3. Definition of Terms. – For purposes of implementing this Act, the following definitions shall apply:

(a) Lending Company shall refer to a corporation engaged in granting loans from its own capital funds or from funds sourced from not more than nineteen (19) persons. It shall not be deemed to include banking institutions, investment houses, savings and loan associations, financing companies, pawnshops, insurance companies, cooperatives and other credit institutions already regulated by law. The term shall be synonymous with lending investors.

(b) Debtor shall refer to a borrower or person granted a loan by the lending company.

(c) Quasi-Bank shall refer to a non-bank financial institution authorized by the BSP to engage in quasi-banking functions and to borrow funds from more than nineteen (19) lenders through the issuance, endorsement or assignment with recourse or acceptance of deposit substitutes as defined in Section 95 of Republic Act No. 7653 (the “:New Central Bank Act”:) for purposes of relending or purchasing of receivables and other obligations.

(d) Subsidiary shall refer to a corporation more than fifty percent (50%) of the voting stock of which is owned by a bank or quasi-bank.

(e) Affiliate shall refer to a corporation, the voting stock of which, to the extent of fifty percent (50%) or less, is owned by a bank or quasi-bank which is related or linked to such institution through common stockholders or such other factors as may be determined by the Monetary Board of the BSP.

(f) SEC shall refer to the Securities and Exchange Commission.

(g) BSP shall refer to the Bangko Sentral ng Pilipinas.

SEC. 4. Form of Organization. – A lending company shall be established only as a corporation: Provided That existing lending investors organized as single proprietorships or partnerships shall be disallowed from engaging in the business of granting loans to the public one year after the date of effectivity of this Act.

No lending company shall conduct business unless granted an authority to operate by the SEC.

SEC. 5. Capital. – The minimum paid in capital of any lending company which may be established after the effectivity of this Act shall be One million pesos (P1,000,000.00): Provided, however, That lending companies established and in operation prior thereto shall comply with the minimum capitalization required under the provisions of this Section within such time as may be prescribed by the SEC which time shall, in no case, be less than three years from the date of effectivity of this Act and: Provided, further, That the SEC may prescribe a higher minimum capitalization if warranted by circumstances.

SEC. 6. Citizenship Requirements. – Upon the effectivity of this Act, at least a majority of the voting capital stock shall be owned by citizens of the Philippines.

The percentage of foreign-owned voting stock in any lending company existing prior to the effectivity of this Act, if such percentage is in excess of forty-nine percent (49%) of the voting stock, shall not be increased but may be reduced and, once reduced, shall not be increased thereafter beyond forty-nine percent (49%) of the voting stock of the lending company. The percentage of foreign-owned voting stocks in any lending company shall be determined by the citizenship of the individual stockholders. In the case of corporations owning shares in a lending company, the citizenship of the individual owners of voting stock in such corporations shall be the basis in the computation of the percentage.

No foreign national may be allowed to own stock unless the country of which he is a national accords reciprocal rights to Filipinos.

SEC. 7. Amount and Charges on Loans. – A lending company may grant loans in such amounts and reasonable interest rates and charges as may be agreed upon between the lending company and the debtor: Provided, That the agreement shall be in compliance with the provisions of Republic Act No. 3765, otherwise known as the “Truth in Lending Act” and Republic Act 7394, otherwise known as the “Consumer Act of the Philippines”: Provided, further, That the Monetary Board, in consultation with the SEC and the industry, may prescribe such interest rate as may be warranted by prevailing economic and social conditions.

SEC. 8. Maintenance of Books of Accounts and Records. – Every lending company shall maintain books of accounts and records as may be required by the SEC and prescribed by the Bureau of Internal Revenue and other government agencies. In case a lending company engages in other businesses, it shall maintain separate books of accounts for these businesses.

The Manual of Accounts prescribed by the BSP for lending investors shall continue to be adopted by lending companies for uniform recording and reporting of their operations, until a new Manual of Accounts shall have been prescribed by the SEC.

It shall issue the appropriate instruments and documents to the parties concerned to evidence its lending and borrowing transactions.

SEC. 9. Authority of the SEC. – The SEC is hereby authorized to:

(a) Create a new division or bureau within its control to regulate and supervise the operations and activities of lending companies in the country;

(b) Issue rules and regulations to implement the provisions contained herein;

(c) Issue rules and regulations on, among other things, minimum capitalization, uses of funds received, method of marketing and distribution, maturity of funds received, restrictions or outright prohibition of purchases or sales of receivables with or without recourse basis;

(d) Require from lending companies reports of condition and such other reports necessary to determine compliance with the provisions of this Act;

(e) Exercise visitorial powers whenever deemed necessary; and

(f) Impose such administrative sanctions including suspension or revocation of the lending company’s authority to operate and the imposition of fines for violations of this Act and regulations issued by the SEC in pursuance thereto.

SEC. 10. Implementing Rules and Regulations. ? Within three months after the approval of this Act, the SEC shall promulgate the necessary rules and regulations implementing the provisions of this Act.

SEC. 11. Delineation of Authority between SEC and the BSP. – Lending companies shall be under the supervision and regulation of the SEC: Provided, however, That lending companies which are subsidiaries and affiliates of banks and quasi-banks shall be subject to BSP supervision and examination in accordance with Republic Act No. 7653: Provider further, That the Monetary Board, after being satisfied that there is reasonable ground to believe that a lending company is being used as a conduit by a bank, quasi-bank or their subsidiary/affiliate to circumvent or violate BSP rules and regulations, may order an examination of the lending company’s books and accounts.

SEC. 12. Penalty. – A fine of not less than Ten Thousand Pesos (P10,000.00) and not more than Fifty thousand pesos(P50,000.00) or imprisonment of not less than six months but not more than ten (10) years or both, at the discretion of the court, shall be imposed upon:

1. Any person who shall engage in the business of a lending company without a validly subsisting authority to operate from the SEC.

2. The president, treasurer and other officers of the corporation, including the managing officer thereof, who shall knowingly and willingly:

a. Engage in the business of a lending company without a validly subsisting authority to operate from the SEC;

b. Hold themselves out to be a lending company, either through advertisement in whatever form, whether in its stationery, commercial paper, or other document, or through other representations without authority;

c. Make use of a trade or firm name containing the words “lending company” or “lending investor” or any other designation that would give the public the impression that it is engaged in the business of a lending company as defined in this Act without authority; and

d. Violate the provisions of this Act.

3. Any officer, employee, or agent of a lending company who shall:

a. Knowingly and willingly make any statement in any application, report, or document required to be filed under this Act, which statement is false or misleading with respect to any material fact; and

b. Overvalue or aid in overvaluing any security for the purpose of influencing in any way the action of the company in any loan, or discounting line.

4. Any officer, employee or examiner of the SEC directly charged with the implementation of this Act or of other government agencies who shall commit, connive, aid, or assist in the commission of acts enumerated under Subsections 1 and 2 of this Section.

SEC. 13. Matters not Covered by this Act. ? The provisions of Republic Act No. 3765, otherwise known as the “Truth in Lending Act”, Republic Act No. 7394 or the “Consumer Act of the Philippines” and other existing laws, insofar as they are not in conflict with any provision of this Act, shall apply in matters not otherwise specifically provided in this Act.

SEC. 14. Repealing Clause. – All laws, executive orders, letters of instruction, rules and regulations, or provisions thereof which are inconsistent with the provisions of this Act are hereby repealed, amended or modified accordingly.

SEC. 15. Separability Clause. – If any portion hereof shall be held invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the other provisions which shall remain in full force and effect.

SEC. 16. Effectivity. – This Act shall take effect fifteen (15) days after its publication in at least two national newspapers of general circulation.

Approved,

MANNY VILLAR

President of the Senate

JOSE DE VENECIA JR.

Speaker of the House of Representatives

This Act which is a consolidation of Senate Bill No. 1949 and House Bill No. 6073 was finally passed by the Senate and the House of Representatives on December 19, 2006 and February 20, 2007, respectively.

OSCAR G. YABES

Secretary of Senate

ROBERTO P. NAZARENO

Secretary General

House of Representatives

Approved: May 22, 2007

GLORIA MACAPAGAL-ARROYO

President of the Philippines

WRITE-UPS ON ATTY. SIXTO BRILLANTES

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Source: http://www.gmanews.tv/story/210778/who-is-comelecs-sixto-brillantes-jr

at 11:02 AM  

January 18, 2011

Who is Comelec’s Sixto Brillantes Jr.?

Categories: Politics

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Who is Comelec’s Sixto Brillantes Jr.? Frankly speaking I do not know this person personally. And I made this post just to show you who is Sixto Brillantes in person. I know many of us already know him because He is the new appointed head of the Commission on Elections (Comelec).

Who is Sixto Brillantes?

Brillantes Jr. is a veteran election lawyer, a bar topnotcher, and a son of a former Comelec commissioner. The 71-year-old lawyer believes that public service would be the best way to cap his career.

He also exposed the alleged cheating maneuvers of former President Gloria Macapagal-Arroyo to win the 2004 elections. Arroyo’s rival, the actor Fernando Poe Jr., was a former client of Brillantes.

In 1990, Brillantes also won a case against Haydee Yorac, who was then designated as acting Comelec chief. The High Court ruled in favor of Brillantes and said Yorac’s assumption of the post was unconstitutional.

And since 2006, he has been a legal consultant of the United Opposition, which was created by Vice President Jejomar Binay to unite all politicians against then-President Arroyo.

Brillantes said his first priority is to ensure clean and honest elections in the Autonomous Region in Muslim Mindanao in August this year.

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Statement

of

His Excellence Benigno S. Aquino III

President of the Philippines

On the appointment of Attorney Sixto Brillantes as Chairman of the Commission on Elections

[Delivered by Presidential Spokesperson Edwin Lacierda during a press briefing at Malacañang on January 17, 2010]

Last January 15, I appointed veteran election lawyer Sixto Brillantes Jr. Chairman of the Commission on Elections to serve out the unexpired term of former chairman Jose Melo.

I have always said that correct identification of a problem leads to the correct solutions. Brillantes’ long career in election law has given him extensive on-the-ground expertise, not just of the law, but also of the systems and processes that govern our electoral exercises.

The country needs someone with practical knowledge and not just theoretical understanding of election law, and an intensive knowledge of the bureaucracy, who could hit the ground running.

We need someone who understands, and can fix, the defects in the system: nuisance candidates who end up disqualified late in the day, leaving too little time to inform the Board of Election Inspectors (BEI).

We also need someone who will guide the Comelec to ensure that the laws will not be used to game the system.

The Comelec has much to do to ensure cases are resolved, not days to go before election day, or days to go before the contested term expires.

Chairman Brillantes’ main task now is to ensure an orderly and credible election in 2013 and I am confident that he is capable of achieving this and leaving a legacy that will culminate a distinguished legal career.

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abs-cbnNEWS.com

Posted at 01/10/2011 11:54 AM | Updated as of 01/10/2011 9:00 PM

MANILA, Philippines – An officer of the National Press Club (NPC) on Monday warned against the possible appointment of Sixto Brillantes, election lawyer of President Benigno Aquino III, as the next chairman of the Commission on Elections (Comelec). 

In an interview, NPC vice-president Marlon Purificacion said he opposes Brillantes’s appointment to Comelec because he is known as a political operator who once worked for the Ampatuan family. Brillantes also worked for Sen. Loren Legarda and even President Aquino during the May elections.

“We oppose his possible appointment because he is a lawyer of the Ampatuans and he is an election lawyer. As an election lawyer, you have a lot of clients. Kapag ikaw ay nasa Comelec na, sino ang makikinabang sa iyo kundi ang mga dati mong kliyente.” he told ABS-CBN’s “Umagang Kay Ganda.”

The NPC officer said Brillantes could be appointed to any government post except Comelec.

He said the political accommodation of Benjamin Abalos as Comelec chairman during the time of President Gloria Macapagal Arroyo led to the “Hello, Garci” wiretapping scandal, which linked Arroyo to an alleged plot to rig the May 2004 presidential election.

“Maybe next time, we will have a ‘Hello, Sixto,'” he said.

Purificacion said the NPC is opposing not just Brillantes’s appointment but the appointment of other lawyers from Brillantes’s law firm to the poll body. Aside from the chairman’s post, Aquino will also be appointing 2 other commissioners to the poll body.

He appealed to Malacañang to appoint other people to Comelec, and urged election watchdogs such as the Parish Pastoral Council for Responsible Voting (PPCRV) and National Citizens’ Movement for Free Elections (Namfrel) to stay vigilant about the Comelec appointments.

Melo earlier named 3 people who may replace him when he steps down at the end of the month. The 3 are Brillantes, retired Supreme Court Associate Justice Leonardo Quisumbing and SC Associate Justice Antonio Eduardo Nachura.

Presidential spokesman Edwin Lacierda said Melo’s successor will serve his unexpired term, which is until 2015, as Melo has a fixed 7-year term starting 2008 when he was appointed by former President Gloria Macapagal-Arroyo.

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SOURCE: BATANGAS TODAY. DOWNLOADED 18 JANUARY 2011

Sixto Brillantes took his oath as the new Commission on Elections (Comelec) Chairman before Supreme Court Justice Antonio Eduardo Nachura at around 4:00 on Sunday, January 15, 2011 afternoon, according to local news sites.

Photo Credit: Abs-cbnnews.com

Election lawyer Sixto Brillantes will take over the chairmanship of the Comelec from outgoing Chairman Jose Melo. In a statement, Melo clarified that he decided to advanced his resignation date by two weeks, from January 31, 2011 to January 15, 2011, to give ample time for President Benigno Aquino III to name the new Comelec Chairman. Melo had earlier indicated that he will resign on January 31 this year.

In an interview with a dzMM radio program, Brillantes revealed that he has accepted his appointment as the new Comelec chairman. His appointment was signed by PNoy on Saturday, January 15, 2011.

Brillantes vowed to be “neutral and impartial,” when interviewed by Julius Babao in the dzMM radio program.

The veteran election lawyer already advised his clients to look for other lawyers who will defend them, and made it clear that he would not favor them in the Comelec. Brillantes will inhibit himself on cases that involves his former clients.

This will be Brillantes‘ first time to join the government in his long career as a lawyer and he vowed to pursue electoral reforms as Chairman of the Comelec.

Melo has been chairman of the Comelec for almost 3 years. His main legacy as Comelec chairman is the successful implementation of the first ever automated elections in the Philippines held last May 2010.

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abs-cbnNEWS.com

Posted at 01/13/2011 11:13 AM | Updated as of 01/13/2011 5:10 PM

MANILA, Philippines – Election lawyers Sixto Brillantes and Romulo Macalintal on Thursday vowed to institute reforms in the Commission on Elections (Comelec) if either one is appointed chairman of the poll body.

The 2 confirmed that they were personally interviewed by President Benigno Aquino III for the position last Monday.

Macalintal, the election lawyer of former President Gloria Macapagal Arroyo, said it is important to appoint a Comelec chairman who knows the ins and outs of the election process in the country.

“The problem is some of the Comelec appointees don’t know how elections are done here or the relevant election laws,” he said in a dzMM interview.

He said lack of knowledge in Comelec processes is one reason why anomalies continue under the noses of the Comelec commissioners.

“Kapag alam ng nasa ibaba na alam mo yung iyung ginagawa, hindi sila gagawa ng ganyan,” he said.

For his part, Brillantes, the election lawyer of President Aquino, said he wants to restructure the senior staff in the poll body.

In particular, he said he wants stricter monitoring of Comelec regional directors especially since “they are practically autonomous in their regions.”

“Di mo naman magagalaw ang mga commissioners eh. Kung ako pagagalawin sa commissioners, gusto ko sana panibagong ang mga kasama ko lahat,” he said.

If appointed, both lawyers said that they will have to inhibit from ruling on electoral protests that they were pursuing before the poll body. Macalintal has 20 pending cases for various clients before the Comelec while Brillantes has 24-25 cases.

The next chief of the poll body will serve for 4 years, the remainder of the term of Comelec Chairman Jose Melo, who opted for early retirement effective end of this month.

Macalintal: No one endorsed me

Sen. Sergio Osmeña III on Wednesday said the Liberal Party-Balay (LP-Balay) faction in Malacañang wants Macalintal to be the next Comelec chairman instead of Brillantes.

Osmeña, who ran under the administration ticket in the 2010 elections but is not an LP member, said the LP-Balay bloc is wary of Brillantes’ possible appointment because the latter was seen to have supported an Aquino-Jejomar Binay ticket during the May polls.

Asked if this means the LP-Balay group was willing to overlook Macalintal’s association with former president Gloria Arroyo, he said: “It looks that way.”

As for Brillantes, Osmeña added: “The problem is, I think, Brillantes supported ‘Noy-Bi’ [Noynoy-Binay] and therefore I think the LP does not want a ‘Noy-Bi’ lawyer to head the Comelec.”

Brillantes is associated with the so-called “Noy-Bi” faction in the administration because he was the election lawyer of Fernando Poe Jr. during the 2004 presidential elections.

Osmeña said both Brillantes and Macalintal served as his election lawyer at one time or another and both were qualified.

Macalintal, meanwhile, denied that he has received the endorsement of any particular group. “Walang nag-endorse sa akin, no letter or biodata,” he said.

He also said he has yet to consult his family about accepting the possible appointment.

Brillantes said if he is appointed to Comelec, he would rather be chairman than just another commissioner.

“I don’t think I will be able to implement as a mere commissioner. You have to have some hold on the entire structure of the Comelec eh para makapagbigay ka ng reform,” he said.

He added that if he accepts the Comelec post, it would be a good ending to his career since he is already 70 years old.

“Public service iyan eh. I don’t think I would have the temerity to say no. Siguro magandang end part nga rin ng aking career. Makatulong sa gobyerno, makatulong sa ating bayan.

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Trillanes: Garcia set to talk but got scared 
Philippine Daily Inquirer
First Posted 01:12:00 01/13/2011

Filed Under: Graft & Corruption, Military, Crime and Law and Justice, Judiciary (system of justice), Legal issues,agreements

Most Read

MANILA, Philippines—Ex-military comptroller Carlos Garcia, who has entered into a plea bargain with state prosecutors to elude a plunder charge, was “fronting” for a powerful person and wanted to talk about it two years ago, but was scared, Sen. Antonio Trillanes IV said Wednesday.

“Garcia is a front for somebody powerful. In 2009, he was willing to talk but he got afraid,” Trillanes said in an interview with ABS-CBN.

The senator declined to identify the powerful person but said he had disclosed the name to certain people in Malacañang. He said he had communicated and played basketball with Garcia when they were both in detention.

Days after news of Garcia’s plea bargain with prosecutors broke, Trillanes blamed the Office of the Ombudsman for the agreement.

Sen. Alan Peter Cayetano, chair of the Senate ethics committee, had asked the government to use Garcia as a witness to convict ranking officials behind the corruption in the Armed Forces of the Philippines (AFP).

“There’s a bigger fish that’s damaging our case, and we should use all opportunities to ask General Garcia who’s the bigger fish,” Cayetano said, agreeing that this should have been made a condition for the plea bargain.

Garcia is charged with plunder for allegedly stealing P303 million from state coffers. He is out on bail after pleading guilty to the lesser offenses of bribery and money laundering.

House inquiry

Two separate resolutions, one filed by Parañaque Rep. Roilo Golez, and another by Cagayan de Oro Rep. Rufus Rodriguez and Abante Mindanao party-list Rep. Maximo Rodriguez Jr., were filed Wednesday seeking an inquiry into the plea bargain.

“There is an urgent need to look into measures to obviate resort to such deals and acts with the end in view of improving the legal processes in our present criminal justice system, strengthening the existing law on plunder and other anti-graft legislation, and restoring the integrity and public confidence in the AFP, the Office of the Ombudsman and the Sandiganbayan,” Golez said.

Rufus Rodriguez said business groups, the clergy, former soldiers and former prosecutors had raised concerns about the plea bargain and were clamoring for its abrogation. He said the agreement could embolden other plunderers to take the same route.

The plea bargain was signed on Feb. 25, 2010, by Garcia and his lawyer Constantino de Jesus with Ombudsman Merceditas Gutierrez, Special Prosecutor Wendell Sulit, Deputy Special Prosecutor Robert Kallos, Deputy Special Prosecutor Jesus Micael, Assistant Special Prosecutor Jose Balmeo and Assistant Prosecutor Joseph Capistrano.

The agreement required Garcia to surrender to the state only P135.433 million worth of assets, and effectively cleared his wife Clarita and their three sons—his co-accused in the plunder and money laundering cases—of liability.

On March 16, 2010, the prosecutors and Garcia filed a joint motion for the approval of the agreement in the Sandiganbayan’s second division.

On May 4, 2010, the motion was granted and the agreement approved.

Golez noted that the agreement was made after a special Sandiganbayan division resolved to deny Garcia’s petition for bail on Jan. 7, 2010, on the basis of the fact that the prosecution’s evidence to establish his guilt was strong.

A month before Garcia was released on bail last December, prosecutors told the Sandiganbayan that he had “substantially complied” with the requirements set by the anti-graft court for the approval of the plea bargain.

This was according to a manifestation dated Nov. 22, 2010, and filed by the prosecutors handling Garcia’s case. It was signed by Balmeo and Capistrano.

The prosecutors said most of the assets listed in the plea bargain had been transferred to the state, as required by the Sandiganbayan in its May 4, 2010, resolution.

The Office of the Solicitor General (OSG), which has opposed the plea bargain and is seeking to intervene in the case, earlier said that the May 4 resolution showed that the court had approved the deal.

But the justices of the Sandiganbayan’s second division pointed out on Monday that several actions were required “before the plea bargain may be approved.” The justices said there was no approval of the agreement in the resolution.

Still, the OSG insisted that the agreement was “virtually” approved because Garcia had transferred some of his assets to the state, and was granted bail after being allowed to plead guilty to lesser offenses.

The assets to be transferred to the state include the Trump Park Avenue condominium in New York (P43.155 million); real estate in Iloilo (P10.69 million), Batangas (P7.60 million), Baguio (P2.8 million) and Guimaras (P165,372); and seven vehicles (P4.42 million).

Included as well are cash in Philippine banks amounting to P52.51 million; cash in US banks amounting to P13.85 million; 20,000 shares of stocks in IJT caregiver; and 3,000 shares of stock in Katamnan Corp.

Dissatisfaction

At a briefing for reporters, President Benigno Aquino III’s deputy spokesperson Abigail Valte expressed Malacañang’s dissatisfaction with Sulit’s explanation of the plea bargain.

Valte also took exception to Sulit’s claim that certain people were feeding Mr. Aquino wrong information on the plunder case.

“You should ask them why they are not forthcoming with the proper explanation,” Valte told reporters in reference to state prosecutors led by Sulit.

She said Sulit had not really answered the questions spawned by the agreement.

Strong evidence vs accused

Valte said Palace lawyers had studied the court records of Garcia’s case and found “strong evidence” against him.

To Sulit’s claim that the prosecutors believed they had a weak case because no military contractor or supplier came forward to testify against Garcia, Valte said the prosecutors were indeed not able to find them because there were “no real suppliers” as shown in the court records.

“Instead of saying that the President was given wrong information, they should start saying why they entered into such a deal,” she said. Reports from TJ Burgonio, Cynthia D. Balana, Leila B. Salaverria and Christine O. Avendaño