AN ACT GRANTING TAX EXEMPTIONS AND FEE PRIVILEGES TO SPECIAL PURPOSE VEHICLES WHICH ACQUIRE OR INVEST IN NON-PERFORMING ASSETS
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AN ACT GRANTING TAX EXEMPTIONS AND FEE PRIVILEGES TO SPECIAL PURPOSE VEHICLES WHICH ACQUIRE OR INVEST IN NON-PERFORMING ASSETS
Republic Act No. 9182
December 23, 2002
Case Overview and Summary
Summary of the Special Purpose Vehicle (SPV) Act of 2002Declaration of Policy (Section 2):
- Develop and maintain a sound financial sector
- Address non-performing asset problems of the financial sector
- Encourage private sector investments in non-performing assets
- Eliminate barriers in acquiring non-performing assets
- Help in rehabilitating distressed businesses
- Improve liquidity of the financial system
Definition of Terms (Section 3):
- Defines key terms like "Approval Certificate", "Approved Plan", "BSP", "Commission", "Financial Institutions", "Investment Unit Instruments", "Non-Performing Assets", "Non-Performing Loans", "ROPOAs", "SPV", "SPV Plan", and "True Sale"
Special Purpose Vehicle (Sections 4-11):
- SPV shall be organized as a stock corporation (Section 4)
- Powers of an SPV are enumerated (Section 5)
- Applications for SPV establishment must be filed within 18 months from IRR approval (Section 6)
- Minimum authorized, subscribed, and paid-up capital requirements (Section 7)
- SPV Plan submission and approval process (Sections 8-9)
- Issuance of Investment Unit Instruments (IUIs) (Section 10)
- Permitted Investors and restrictions (Section 11)
Transfer of Assets to SPV (Sections 12-14):
- Notice and manner of transfer of NPLs (Section 12)
- Nature of transfer must be a "true sale" (Section 13)
- SPV assumes rights and obligations of transferring FI (Section 14)
Incentives and Exemption Privileges (Sections 15-18):
- Tax exemptions for SPV and transfers (Section 15)
- Additional tax exemptions for business rehabilitation (Section 16)
- Privileges for participating FIs, including loss treatment (Section 17)
- Penalties for abuse of tax exemptions and privileges (Section 18)
Enforcement and Protection Provisions (Section 19):
- Redemption periods for borrowers (Section 19)
Reporting Provisions (Sections 20-21):
- Books of accounts, records, and audits (Section 20)
- Submission of reports (Section 21)
Final Provisions (Sections 22-31):
- Implementing Rules and Regulations (Section 22)
- Congressional Oversight Committee (Section 23)
- Primary Implementing Agency (Section 24)
- Penalties for violations (Section 25)
- Applicability to assets non-performing as of June 30, 2002 (Section 26)
- Conscience Clause (Section 27)
- Use of registration fees (Section 28)
- Separability Clause (Section 29)
- Repealing Clause (Section 30)
- Effectivity (Section 31)
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non-performing assets
special purpose vehicle
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AN ACT GRANTING TAX EXEMPTIONS AND FEE PRIVILEGES TO SPECIAL PURPOSE VEHICLES WHICH ACQUIRE OR INVEST IN NON-PERFORMING ASSETS
Republic Act No. 9182
•December 23, 2002
Republic of the PhilippinesCONGRESS OF THE PHILIPPINESMetro Manila
Twelfth CongressSecond Regular Session
Begun and held in Metro Manila, on Monday, the twenty-second day of July, two thousand two.
Republic Act No. 9182             December 23, 2002
AN ACT GRANTING TAX EXEMPTIONS AND FEE PRIVILEDGES TO SPECIAL PURPOSE VEHICLES WHICH ACQUIRE OR INVEST IN NON-PERFORMING ASSETS, SETTING THE REGULATORY FRAMEWORK THEREFOR, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
ARTICLE 1
GENERAL PROVISIONS
SECTION 1. Title. – This Act shall be known as "The Special Purpose Vehicle (SPV) Act of 2002".
Section 2. Declaration of Policy. – It is hereby declared the policy of the state:
(a) To develop and maintain a sound financial sector for the country;
(b) To address the non-performing asset problems of the financial sector;
(c) To encourage private sector investments in non-performing assets;
(d) To eliminate existing barriers in the acquisition of non-performing assets
(e) To help in the rehabilitation of distressed business with...
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