ECONOMIC LAWS

1. REPUBLIC ACT NO. 8799

SECURITIES REGULATION CODE


CHAPTER I
Title and Definitions

SECTION 1. Title. This shall be known as The Securities
Regulation Code.


SEC. 2. Declaration of State Policy. The State shall establish a
socially conscious, free market that regulates itself, encourage
the widest participation of ownership in enterprises, enhance the
democratization of wealth, promote the development of the
capital market, protect investors, ensure full and fair disclosure
about securities, minimize if not totally eliminate insider trading
and other fraudulent or manipulative devices and practices which
create distortions in the free market.

To achieve these ends, this Securities Regulation Code is hereby
enacted.

2. THE OMNIBUS INVESTMENTS CODE OF 1987
(Executive Order No. 226)

CHAPTER 1
TITLE AND DECLARATION OF POLICY
ARTICLE 1. Short Title. - This Order shall be known as the "Omnibus
Investments Code of 1987."
ART. 2. Declaration of Investment Policies. - To accelerate the sound
development of the national economy in consonance with the
principles and objectives of economic nationalism and in pursuance
of a planned economically feasible and practical dispersal of
industries and the promotion of small and medium scale industries,
under conditions which will encourage competition and discourage
monopolies, the following are declared policies of the State:
1. The State shall encourage private Filipino and foreign investments
in industry, agriculture, forestry, mining, tourism and other sectors
of the economy which shall: provide significant employment
opportunities relative to the amount of the capital being invested;
increase productivity of the land, minerals, forestry, aquatic and
other resources of the country, and improve utilization of the
products thereof improve technical skills of the people employed in
the enterprise; provide a foundation for the future development of
the economy; meet the tests of international competitiveness;
accelerate development of less developed regions of the country;
and result in increased volume and value of exports for the
economy.chanrobles virtual law library
2. The State shall ensure holistic development by safeguarding the
well-being of the social, cultural and ecological life of the people. For
this purpose, consultation with affected communities will be
conducted whenever necessary.chanrobles virtual law library
3. The State shall extend to projects which will significantly
contribute to the attainment of these objectives, fiscal incentives
without which said projects may not be established in the locales,
number and/or pace required for optimum national economic
development. Fiscal incentive systems shall be devised to
compensate for market imperfections, to reward performance
contributing to economic development, be cost-efficient and be
simple to administer.chanrobles virtual law library
4. The State considers the private sector as the prime mover for
economic growth. In this regard, private initiative is to be
encouraged, with deregulation and self-regulation of business
activities to be generally adopted where dictated by urgent social
concerns.chanrobles virtual law library
5. The State shall principally play a supportive role, rather than a
competitive one, providing the framework, the climate and the
incentives within which business activity is to take place.chanrobles virtual law library
6. The State recognizes that there are appropriate roles for local and
foreign capital to play in the development of the Philippine economy
and that it is the responsibility of Government to define these roles
and provide the climate for their entry and growth.chanrobles virtual law library
7. The State recognizes that industrial peace is an essential element
of economic growth and that it is a principal responsibility of the
State to ensure that such a condition prevails.chanrobles virtual law library
8. Fiscal incentives shall be extended to stimulate the establishment
and assist initial operations of the enterprise, and shall terminate
after a period of not more than 10 years from registration or start-up
of operation unless a specific period is otherwise stated.chanrobles virtual l aw library
The foregoing declaration of investment policies shall apply to all
investment incentive schemes.chanrobles virtual law l
3. SPECIAL ECONOMIC ZONE ACT OF 1995
[Republic Act No. 7916]


CHAPTER 1
PURPOSES AND OBJECTIVES; ESTABLISHMENT AND NATURE OF SPECIAL
ECONOMIC ZONES; COORDINATION WITH OTHER SIMILAR SCHEMES
SECTION 1. Title. - This act shall be known and cited as "The Special Economic
Zone Act of 1995."
SECTION 2. Declaration of Policy. - It is the declared policy of the government to
translate into practical realities the following State policies and mandates in the
1987 Constitution, namely:chanroblesvirtuallawlibrary
a)"The State recognizes the indispensible role of the private sector, encourages
private enterprise, and provides incentives to needed investments." (Sec. 20, Atr.
II)

b)"The State shall promote the preferential use of Filipino labor, domestic
materials and locally produced goods, and adopt measures that help make them
competitive." (Sec. 12, Art. XII)
In pursuance of these policies, the government shall actively encourage, promote,
induce and accelerate a sound and balanced industrial, economic and social
development of the country in order to provide jobs to the people especially those
in the rural areas, increase their productivity and their individual and family
income, and thereby improve the level and quality of their living condition through
the establishment, among others, of special economic zones in suitable and
strategic locations in the country and through measures that shall effectively
attract legitimate and productive foreign investments.

SECTION 3. Purposes, Intents and Objectives. - It is the purpose, intent and
objective of this Act:chanroblesvirtual lawlibrary
a)To establish the legal framework and mechanisms for the integration,
coordination, planning and monitoring of special economic zones, industrial
estates/parks, export processing zones and other economic zones;

b)To transform selected areas in the country into highly developed agro-
industrial, commercial, tourist, banking investment, and financial centers, where
highly trained workers and efficient services will be available to commercial
enterprises;

c)To promote the flow of investors, both foreign and local, into special economic
zones which would generate employment opportunities and establish backward
and forward linkages among industries in and around the economic zones;

d)To stimulate the repatriation of Filipino capital by providing attractive climate
and incentives for business activity;

e)To promote financial and industrial cooperation between the Philippines and
industrialized countries through technology-intensive industries that will
modernize the country's industrial sector and improve productivity levels by
utilizing new technological and managerial know-how; and

f)To vest the special economic zones on certain areas thereof with the status of a
separate customs territory within the framework of the Constitution and the
national sovereignty and territorial integrity of the Philippines.


4. REPUBLIC ACT NO. 8754

REPUBLIC ACT NO. 8791 - AN ACT PROVIDING FOR THE
REGULATION OF THE
ORGANIZATION AND OPERATIONS OF BANKS,
QUASI-
BANKS, TRUST ENTITIES AND FOR OTHER
PURPOSES



CHAPTER I
TITLE AND CLASSIFICATION OF BANKS

Section 1. Title. The short title of this Act shall be The General Banking Law of 2000." (1a)
Sec. 2. Declaration Of Policy. - The State recognizes the vital role of banks providing an
environment conducive to the sustained development of the national economy and the
fiduciary nature of banking that requires high standards of integrity and performance. In
furtherance thereof, the State shall promote and maintain a stable and efficient banking and
financial system that is globally competitive, dynamic and responsive to the demands of a
developing economy.

5. REPUBLIC ACT NO. 7353


AN ACT PROVIDING FOR THE CREATION, ORGANIZATION AND
OPERATION OF RURAL BANKS, AND FOR OTHER PURPOSES.

Section 1. This Act shall be known and cited as the "Rural Banks
Act of 1992."
chan robles virt ual law library

Sec. 2. The State hereby recognizes the need to promote
comprehensive rural development with the end in view of
attaining a more equitable distribution of opportunities, income
and wealth, a sustained increase in the amount of goods and
services produced by the nation for the benefit of the people; and
in expanding productivity as a key to raising the quality of life for
all, especially the underprivileged.chanrobles virtual law library
Towards these ends, the State hereby encourages and assists in
the establishment of a rural banking system designed to make
needed credit available and readily accessible in the rural areas
on reasonable terms. chan robles virt ual law library
Sec. 3. In furtherance of this policy, the Monetary Board of the
Central Bank of the Philippines shall formulate the necessary
rules and regulations governing the establishment and operation
of farmers and merchants, or to cooperatives of such farmers and
merchants and, in general, to the people of the rural
communities, and to supervise the operation of such banks.
Sec. 4. No rural bank shall be operated without a Certificate of
Authority from the Monetary Board of the Central Bank. Rural
banks shall be organized in the form of stock corporations. Upon
consultation with the rural banks in the area, duly established
cooperatives and corporations primarily organized to hold
equities in rural banks may organize a rural bank and/or
subscribe to the shares of stock of any rural bank: Provided, That
a cooperative or corporation owning or controlling the whole or
majority of the voting stock of the rural bank shall be subject to
special examination and to such rules and regulations as the
Monetary Board may prescribe. With the exception of
shareholdings of corporations organized primarily to hold equities
in rural banks as provided for under Section 12-C of Republic Act
No. 337, as amended, and of Filipino-controlled domestic banks,
the capital stock of any rural bank shall be fully owned and held
directly or indirectly by citizens of the Philippines or
corporations, associations or cooperatives qualified under
Philippine laws to own and hold such capital stock: Provided,
That any provisions of existing laws to the contrary
notwithstanding, stockholdings in a rural bank shall be exempt
from any ownership ceiling for a period of ten (10) years from the
approval of this Act: Provided, further, That any such exemption
shall require the approval of the Monetary Board. If subscription
of private shareholders to the capital stock of a rural bank cannot
be secured or is not available, or insufficient to meet the normal
credit needs of the locality, the Land Bank of the Philippines, the
Development Bank of the Philippines, or any government-owned
or controlled bank or financial institution, on representation of
the said private shareholders but subject to the investment
guidelines, policies and procedures of the bank of financial
institution and upon approval of the Monetary Board of the
Central Bank, shall subscribe to the capital stock of such rural
bank, which shall be paid in full at the time of subscription, in an
amount equal to the fully paid subscribed and unimpaired, capital
of the private stockholders or such amount as the Monetary
Board may prescribe as may be necessary to promote and expand
rural economic development: Provided, however, That such
shares of stock subscribed by the Land Bank of the Philippines,
the Development Bank of the Philippines or any government-
owned or controlled bank or financial institution may be sold at
any time at market value to private individuals who are citizens
of the Philippines: Provided, finally, that in the sale of shares of
stock subscribed by the Land Bank of the Philippines, the
Development Bank of the Philippines or any government-owned
or controlled bank or financial institution, the registered
stockholders shall have the right of preemption within one (1)
year from the date of offer in proportion to their respective
holdings, but in the absence of such buyer, preference, however,
shall be given to residents of the locality or province where the
rural bank is located.cralaw

6. REPUBLIC ACT NO. 7653

THE NEW CENTRAL BANK ACT


CHAPTER I
ESTABLISHMENT AND ORGANIZATION OF THE
BANGKO SENTRAL NG PILIPINAS

ARTICLE I
CREATION, RESPONSIBILITIES AND CORPORATE POWERS OF THE
BANGKO SENTRAL

Section 1. Declaration of Policy. The State shall maintain a central monetary
authority that shall function and operate as an independent and accountable
body corporate in the discharge of its mandated responsibilities concerning
money, banking and credit. In line with this policy, and considering its unique
functions and responsibilities, the central monetary authority established under
this Act, while being a government-owned corporation, shall enjoy fiscal and
administrative autonomy.


7.
Republic Act No. 8424 December 11, 1997
AN ACT AMENDING THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, AND FOR
OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled::
Section 1. Short Title. - This Act shall be cited as the "Tax Reform Act of 1997".
Section 2. State Policy. - It is hereby declared the policy of the State to promote sustainable
economic growth through the rationalization of the Philippine internal revenue tax system, including
tax administration; to provide, as much as possible, an equitable relief to a greater number of
taxpayers in order to improve levels of disposable income and increase economic activity; and to
create a robust environment for business to enable firms to compete better in the regional as well as
the global market, at the same time that the State ensures that Government is able to provide for the
needs of those under its jurisdiction and care.