March 25, 2019
SEC-OGC OPINION NO. 13-19
RE: SECURITIES TO BE DEPOSITED BY A PHILIPPINE BRANCH
Constantino and Partners
22nd Floor Citibank Tower
8741 Paseo de Roxas,
Salcedo Village, Makati City
Attention: Atty. Maricris E. Oronea
Gentlemen :
This refers to your letter dated 20 July 2018 requesting for confirmation that the securities mandated to be deposited by a Philippine Branch with the Commission may be in the form of a US Dollar (USD)-denominated bonds which are to be issued by the Philippine Government.
Section 126 of the Old Corporation Code ("Old Code") 1 provides that foreign corporations licensed to do business in the Philippines are required to deposit securities with the Commission, for the benefit of present and future creditors of the licensee, with the following prescribed conditions and amounts:
"Section 126. Issuance of a License. — x x x
x x x securities satisfactory to the Securities and Exchange Commission, consisting of bonds or other evidence of indebtedness of the Government of the Philippines, its political subdivisions and instrumentalities, or of government-owned or controlled corporations and entities, x x x with an actual market...
