Amending Section 4 Of Commonwealth Act No. 83 As Amended By Presidential Decree No. 678

MALACAÑANG
M a n i l a

PRESIDENTIAL DECREE No. 1798

AMENDING SECTION 4 OF COMMONWEALTH ACT NO. 83 AS AMENDED BY PRESIDENTIAL DECREE NO. 678

WHEREAS, commercial paper issues are instruments for mobilizing funds in developed capital markets as well in developing capital markets;

WHEREAS, commercial paper issuance either through direct savings investment process or through financial intermediaries have monetary and credit implications;

WHEREAS, Presidential Decree No. 678 requiring the registration of commercial paper issues by the Securities and Exchange Commission in accordance with rules which said decree requires to be approved by the Monetary Board of the Central Bank of the Philippines which was then granted concurrent power of enforcement of the rules;

WHEREAS, the intention is to infuse into the mere procedural registration responsibility of the Securities and Exchange Commission the wider implication of monetary and credit policies of the Monetary Board.

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

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Summary of Presidential Decree No. 1798

Amending Section 4 of Commonwealth Act No. 83 as amended by Presidential Decree No. 678

- Commercial Paper Registration
• Commercial papers as defined in Section 1 shall be registered by the Securities and Exchange Commission (SEC). (Section 1)
• Registration shall be in accordance with the requirements of full disclosure in the public interest and rules and regulations on procedural registration promulgated by the SEC, after approval by the Monetary Board. (Section 1)

- Exemptions
• Interbank loans may be exempted from registration as may be necessary in the public interest. (Section 1)

- Monetary Board Authority
• The Monetary Board is authorized to promulgate rules on the monetary and credit aspects of commercial paper issues. (Section 1)
• The Monetary Board may impose ceilings on an industry-wide basis on commercial paper issues by any single issuer. (Section 1)
• The Monetary Board shall have the power of supervision in the enforcement of such rules. (Section 1)
• The Monetary Board may require issuers to submit their financial statements and other relevant reports to the Central Bank on a regular or periodic basis. (Section 1)

- Repealing Clause
• All laws or regulations inconsistent with this Decree are hereby repealed or modified accordingly. (Section 2)

- Effectivity
• This Decree shall take effect upon approval. (Section 3)