Further Amending The Charter Of The Philippine National Bank

Case Overview and Summary

Presidential Decree No. 312 amends the Charter of the Philippine National Bank to grant the following powers:

Issuance of Bonds, Notes, and Other Debt Instruments (Section 1)
- With the approval of the President of the Philippines, the Philippine National Bank can issue various types of bonds, promissory notes, debentures, certificates of indebtedness, or other debt instruments.
- These instruments can be:
    - Secured by credits, real estate, or other assets of the Bank up to 90% of their value, or unsecured/subordinated (Section 1(a))
    - Long-term, medium-term, or short-term (Section 1(b))
    - With fixed or floating interest rates (Section 1(c))
    - Denominated in Philippine currency or eligible foreign currencies (Section 1(d))
    - With other features and requirements as deemed necessary by the Bank (Section 1(e))
- These instruments can be unconditionally guaranteed as to principal and interest by the Republic of the Philippines, or issued without such guaranty (Section 1)
- These instruments are exempt from any taxes imposed by the government or its subdivisions, both as to principal and interest (Section 1)

Repealing Clause (Section 2)
- All acts, executive orders, administrative orders, proclamations, rules, and regulations inconsistent with this Decree are repealed or modified accordingly.

Effectivity (Section 3)
- This Decree takes effect immediately.