Amending the Charter of the Home Financing Commission, Renaming It as Home Financing Corporation, Enlarging Its Powers, and for Other Purposes

Case Overview and Summary

EXECUTIVE ORDER NO. 535

Amending the Charter of the Home Financing Commission, Renaming it as Home Financing Corporation, Enlarging its Powers, and for Other Purposes

• Renames the Home Financing Commission as the Home Financing Corporation (Section 1)
• Grants additional powers to the Corporation:
- Register and regulate homeowners associations (Section 2a, 2b)
- Insure and guarantee loans to homeowners associations for residential construction/improvement (Section 2c)
- Revise/adjust ceilings in the Home Financing Act (Section 2d)
- Extend benefits to private development banks, savings banks, rural banks, savings and loan associations, cooperative banks, registered homeowners associations, and other private entities (Section 2e)
- Issue bonds, debentures, securities, collaterals, promissory notes, certificates of indebtedness, and other debt instruments in foreign currencies, subject to approval by the President and consultation with the Monetary Board and Minister of Finance (Section 2f)
- Invest, own, or participate in equity in establishments related to the Corporation's purpose (Section 2g)
- Form, organize, manage, and operate subsidiary or affiliate companies (Section 2h)
- Exercise all powers necessary or convenient for accomplishing its purposes (Section 2i)
• Sets the authorized capital stock at ONE BILLION (P1,000,000,000.00) PESOS, fully subscribed by the Philippine government (Section 3)
• Authorizes the Central Bank to extend advances and loans to the Corporation (Section 4)
• Guarantees payment by the Philippine government of the Corporation's bonds, debentures, collaterals, notes, or other obligations, up to 15 times the Corporation's capital and surplus (Section 5)
• Establishes a 5-member Board of Directors, including the Minister of Human Settlements as ex-officio Chairman, a Vice-Chairman as President, and 3 other members appointed by the President (Section 6)
• Grants additional powers to the Board, including formulating policies, directing management, authorizing expenditures, creating offices/positions, and exercising necessary powers (Section 7)
• Appoints the Vice-Chairman as the President of the Corporation, with a term of 5 years and a minimum salary of SIXTY THOUSAND PESOS (P60,000.00) per annum (Section 8)
• Outlines the powers and duties of the President (Section 9)
• Appoints the General Manager as the Executive Vice-President, with a minimum salary of FIFTY-TWO THOUSAND PESOS (P52,000.00) per annum (Section 10)
• Requires coordination with the Ministry of Human Settlements and other agencies involved in home building, development, and mortgage financing (Section 11)
• Exempts the Corporation and its subsidiaries/affiliates from Central Bank regulations governing quasi-banking functions (Section 11)
• Designates the Office of the Government Corporate Counsel as the General Counsel of the Corporation (Section 12)
• Authorizes the Board to adopt By-Laws and promulgate necessary rules and regulations (Section 13)
• Reduces the minimum lease period for mortgages on lessor or lessee interests from 40 years to 20 years (Section 14)
• Extends tax exemptions granted to lending institutions under the Home Financing Act to mortgages held by other entities and persons insured under the Corporation's mortgage insurance program, subject to approval by the President and consultation with the Minister of Finance (Section 15)
• Applies provisions of the Corporation Law to the Corporation, insofar as they are consistent with this Executive Order (Section 16)
• Repeals, amends, or modifies inconsistent laws, decrees, executive orders, ordinances, rules, and regulations (Section 17)
• Includes a severability clause (Section 18)
• Sets the effective date as immediate (Section 19)