Amending Presidential Decree No. 264, Creating The Philippine Amanah Bank

MALACAÑANG
M a n i l a

PRESIDENTIAL DECREE No. 542 August 20, 1974

AMENDING PRESIDENTIAL DECREE NO. 264, CREATING THE PHILIPPINE AMANAH BANK

WHEREAS, Presidential Decree No. 264, dated August 2, 1973 was designed and intended principally to rehabilitate, develop, expand and promote the socio-economic conditions of the economically depressed provinces of Mindanao, particularly in the Muslim provinces of North Cotabato, Maguindanao, Sultan Kudarat, Lanao del Norte, Lanao del Sur, Sulu, Tawi-Tawi, Zamboanga del Norte, and Zamboanga del Sur, and to provide more opportunities and incentives to the Muslim citizens of the Philippines, in actively and sincerely participating and getting involved in community development and nation-building;

WHEREAS, in order to render more effective the foregoing intentions and objectives of this Decree, it is necessary that the religious beliefs and practices of the Muslim citizens of the Philippines, be followed and respected, unless otherwise it is contrary to law, good morals and public policy.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the...

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Presidential Decree No. 542 Amending Presidential Decree No. 264, Creating the Philippine Amanah Bank

Purpose and Objectives:
- To provide credit, commercial, development and savings banking facilities at reasonable terms to the primarily Muslim provinces of Mindanao. (Section 1)
- To establish, acquire, develop and expand agricultural, commercial and industrial enterprises in these provinces. (Section 1)
- To rehabilitate, develop, expand and promote the socio-economic conditions of the economically depressed provinces of Mindanao, particularly the Muslim provinces. (Preamble)
- To provide more opportunities and incentives to Muslim citizens in community development and nation-building. (Preamble)

Key Provisions:
- Creation of the Philippine Amanah Bank as a body corporate with its principal place of business in Zamboanga City and a lifespan of 50 years. (Section 1)
- The bank shall be based on the Islamic Concept of Banking, following the no-interest and partnership principles. (Section 1)
- All profits assigned as dividends to the government shares, and all remaining net profits after payment of dividends to other stockholders, shall be transmitted to the Muslim Development Fund of the Philippine Amanah Bank. (Section 2)
- The religious beliefs and practices of Muslim citizens shall be followed and respected, unless contrary to law, good morals and public policy. (Preamble)

Coverage:
- The primarily Muslim provinces of Mindanao, principally North Cotabato, Maguindanao, Sultan Kudarat, Lanao del Sur, Lanao del Norte, Sulu, Basilan, Zamboanga del Norte, Zamboanga del Sur and Palawan. (Section 1)

Repealing Clause:
- All laws, decrees, orders, rules and regulations or parts thereof inconsistent with this Decree are repealed or modified accordingly. (Section 3)

Effectivity:
- This Decree shall take effect immediately. (Section 4)