Professional Documents
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LOAN
(7) Real estate mortgage loans to the extent guaranteed by the Home
Guaranty Corporation (HGC);
based capital adequacy framework under Circular No. 280 dated 29 March
for Small and Medium Enterprises (GFSME) from the list of 0% risk
weighted assets, as follows:
xxx
0% risk weight
X116.3;
ii. Central governments and central banks of foreign countries with the
of the effectivity of the merger of the SBGFC and the GFSME shall
continue to have a zero percent risk weight: Provided, further,
That the zero percent risk weight shall not apply to loans renewed
margin deposits;
The Monetary Board, in its Resolution No. 2224 dated December 3, 1982,
approved the following regulations governing interest rates on loans or
forbearance of money, goods or credit and the amendment of Books I to IV
of the Manual of Regulations for Banks and Other Financial Intermediaries:
General Provisions
SECTION 1.
The rate of interest, including commissions, premiums,
fees and other charges, on a loan or forbearance of any money, goods, or
credits, regardless of maturity and whether secured or unsecured, that
may be charged or collected by any person, whether natural or juridical,
shall not be subject to any ceiling prescribed under or pursuant to the
Usury Law, as amended.
SECTION 2.
The rate of interest for the loan or forbearance of any
money, goods or credits and the rate allowed in judgments, in the absence
of express contract as to such rate of interest, shall continue to be twelve
per cent (12%) per annum.
SECTION 3.
Loans denominated or payable in a foreign currency shall
continue to be subject to Central Bank regulations on foreign borrowings.
BOOK I
Commercial Banks
SECTION 4.
deleted.
x x x
This Circular shall take effect fifteen (15) days after its publication either in
the Official Gazette or in a newspaper of general circulation.
FOR THE MONETARY BOARD:
RAFAEL B. BUENAVENTURA
Governor
CBP CIRCULAR NO. 905-82
SECTION 5.
Section 1303 of the Manual of Regulations is hereby
amended to read as follows:
SECTION 1303. Interest and Other Charges. The rate of interest,
including commissions, premiums, fees and other charges, on any loan, or
forbearance of any money, goods or credits, regardless of maturity and
whether secured or unsecured, shall not be subject to any ceiling
prescribed under or pursuant to the Usury Law, as amended.
SECTION 6.
deleted.
SECTION 7.
The first paragraph of Subsection 1303.4 of the Manual of
Regulations is hereby amended to read as follows:
The rate of interest on a floating rate loan during each interest period
shall be stated on the basis of a reference rate plus a margin as may be
agreed upon by the parties.
SECTION 8.
Subsection 1303.6 of the Manual of Regulations is hereby
amended to read as follows:
Subsection 1303.6. Short-term rate. Expanded commercial banks,
commercial banks and specialized government banks shall post their
respective short-term prime rates in a conspicuous place in their principal
offices, branches and other banking offices. Expanded commercial banks
and the Land Bank of the Philippines shall publish every other Monday their
respective prevailing short-term prime rates in at least one daily
newspaper of general circulation throughout the Philippines and on the
effective date of any change of at least one-half per cent (%) per annum
from the last published rate, in at least one daily newspaper of general
circulation throughout the Philippines. For purposes of this subsection, the
short-term prime rate shall be the lowest effective rate which a bank will
charge on availments of P500,000.00 and above with a maturity of 90
days, more of less , against credit lines of the banks more established
clients, provided that such availments are not eligible for rediscounting
with the Central Bank at preferential rates and that the borrowers are not
directors, officers and stockholders, including their related interest, of the
lending bank.
Likewise, for purposes of this subsection, more established clients is
defined as client who has been availing himself of the facilities of the bank
for number of years, by maintaining substantial deposit balances, utilizing
foreign exchange facilities such as exports, imports and remittances on a
regular basis, or availing himself of other fee-based services.
For statistical and monitoring purposes, banks shall report these rates
monthly to the Department of Economic Research, Domestic, Central Bank
of the Philippines. Changes in these rates shall also be reported to said
Department on the day the changes are to be effective.
Banks shall report monthly to the Department of Economic ResearchDomestic the volume and interest of availments of P500,000.00 and above
with a maturity of 90 days, more or less, against credit lines of their
clients.
SECTION 9.
Item d of Section 1349 of the Manual of Regulations is
hereby amended to read as follows:
SECTION 12.
Section 2303 of the Manual of Regulations is hereby
amended to read as follows:
SECTION 2303. Interest and other Charges. The rate of interest,
including commissions, premiums, fees and other charges, on a loan or
forbearance of any money, goods or credits, regardless of maturity, and
whether secured or unsecured, shall not be subject to any ceiling
prescribed under or pursuant to the Usury Law, as amended.
SECTION 13.
deleted.
SECTION 14.
The first paragraph of Subsection 2303.4 of the Manual of
Regulations is hereby amended to read as follows:
The rate of interest on a floating rate loan during each interest period
shall be stated on the basis of a reference rate plus a margin as may be
agreed upon by the parties.:
SECTION 15.
The last paragraph of Subsection 2303.4 of the Manual of
Regulations is hereby amended to read as follows:
Where the loan agreement provides for a floating interest rate, the
interest period, which shall be such period of time for which the rate of
interest is fixed, shall be such period as may be agreed upon by the
parties.
SECTION 16.
The first paragraph of Subsection 2303.6 of the Manual of
Regulations is hereby deleted.
SECTION 17.
Item c of Section 2349 of the Manual of Regulations is
hereby amended to read as follows:
C.
Terms, interest and charges. The maximum term of loans
money shops may grant shall in no case exceed 180 days and the rate of
interest on such loans, inclusive of commission, premiums, fees and other
charges, shall not be subject to any ceiling prescribed under or pursuant to
the Usury Law, as amended.
SECTION 18.
Subsection 2388.1 of the Manual of Regulations is hereby
ended to read as follows:
Subsection 2388.1.
Yields on purchases of receivables. The rate
of yield, including commissions, premiums, fees and other charges, from
the purchase of receivables and other obligations, regardless of maturity,
that may be charged or received by banks authorized to engage in quasibanking functions or by non-bank financial intermediaries authorized to
engage in quasi-banking functions, shall not be subject to any regulatory
ceiling.
BOOK III
Rural Banks
SECTION 19.
Item c of Subsection 3152.3 of the Manual of
Regulations is hereby amended to read as follows:
SECTION 21.
Paragraph a of Subsection 3303.1 of the Manual of
Regulations is hereby amended to read as follows:
a. Interest rate. The rate of interest, including commissions, premiums,
fees and other charges, on a loan or forbearance of any money, goods, or
credits, regardless of maturity and whether secured or unsecured, shall not
be subject to any ceiling prescribed under or pursuant to the Usury Law, as
amended.
SECTION 22.
Item b of Subsection 3303.1 of the Manual of
Regulations is hereby deleted and items c, d, f and g of the same
Subsection are hereby relettered as items b, c, d and e,
respectively.
SECTION 23.
The first paragraph of Subsection 3303.2 of the Manual of
Regulations is hereby deleted.
SECTION 24.
Subsection 3303.5 of the Manual of Regulations is hereby
amended to read as follows:
Subsection 3303.5. Floating rates of interest. The rate of interest on a
floating rate loan during each interest period shall be stated on the basis of
a reference rate plus a margin as may be agreed upon by the parties.
Where the loan agreement provides for a floating interest rate, the
interest period, which shall be such period of time for which the rate of
interest is fixed, shall be such period as may be agreed upon by the
parties.
Subsection 4303Q.4. Effect of prepayment. If there is no agreement on
the rebate of interest in the event of prepayment of the loan, the creditor is
not under any legal obligation to return the interest corresponding to the
period from date of prepayment to the stipulated maturity date of the loan.
Any prepayment made by the debtor should not, therefore, affect the
computation of the effective rate stipulated in the loan contract.
SECTION 31.
hereby deleted.
SECTION 32.
Whenever any person or entity violated any of the
provisions of this Circular, the person or entity responsible for such
violation shall be subject to the penalties prescribed in the first paragraph
of Section 34 of Republic Act No. 265, as amended, and/or the penalties
prescribed in Section 10 of Act No. 2655, without prejudice to the
imposition of administrative sanctions under Sections 34-A and 34-B of
Republic Act No. 265, as amended.
SECTION 33.
SECTION 27.
Subsections 4303Q.10 and 4303Q.11 of the Manual of
Regulations are hereby renumbered as Subsections 4303Q.5. and 4303Q.6,
respectively.
SECTION 28.
Subsection 4303N.1 of the Manual of Regulations is
hereby amended to read as follows:
Subsection 4303N.1. Interest Rates. The rate of interest including
commissions, premiums, fees and other charges on loans and forbearance
of money, regardless of maturity and whether secured or unsecured, shall
not be subject to any ceilings prescribed under or pursuant to the Usury
Law, as amended.
SECTION 29.
Subsections 4303N.2, 4303N.4 and 4303N.5 of the
Manual of Regulations are hereby deleted, and Subsections 4303N.3,
4303N.6, and 4303N.7 thereof are hereby renumbered as Subsections
4303N.2, 4303N.3 and 4303N.4, respectively.
SECTION 30.
Section 4303P of the Manual of Regulations is hereby
amended to read as follows:
SECTION 4303P. Interest, Fees and Other Charges. The rate of interest
including commissions, premiums, fees and other charges on any loan or
forbearance of money extended by a pawnshop, pawnbroker or
pawnbrokers agent, regardless of maturity, shall not be subject to any
ceiling prescribed under or pursuant to the Usury Law, as amended.
No pawnshop shall collect interest on loans in advance for a period of
more than a year.
thereby, be as it is hereby declared against public policy, and null, void and
of no effect, and no such provision shall be contained in, or made with
respect to, any obligation hereafter incurred. Every obligation heretofore or
hereafter incurred, whether or not any such provision as to payment is
contained therein or made with respect thereto, shall be discharged upon
payment in any coin or currency which at the time of payment is legal
tender for public and private debts: Provided, That, if the obligation was
incurred prior to the enactment of this Act and required payment in a
particular kind of coin or currency other than Philippine currency, it shall be
discharged in Philippine currency measured at the prevailing rates of
exchange at the time the obligation was incurred, except in case of a loan
made in a foreign currency stipulated to be payable in the same currency
in which case the rate of exchange prevailing at the time of the stipulated
date of payment shall prevail. All coin and currency, including Central Bank
notes, heretofore or hereafter issued and declared by the Government of
the Philippines shall be legal tender for all debts, public and private.
Section 2. All acts and parts of acts inconsistent with this Act are hereby
repealed.
Section 3. This Act shall take effect upon its approval.
III. DEPOSIT
of the fact that advances have been made or liabilities incurred and the
purpose thereof is sufficient.
have plainly placed upon its face by the warehouseman issuing it non-
negotiable, may, at his option, treat such receipt as imposing upon the
may insert in a receipt issued by him any other terms and conditions
warehouseman the same liabilities he would have incurred had the receipt
been negotiable.
(b) In any wise impair his obligation to exercise that degree of care in the
safe-keeping of the goods entrusted to him which is reasonably careful
absence of some lawful excuse provided by this Act, is bound to deliver the
that the goods received will be delivered to the depositor or to any other
goods upon a demand made either by the holder of a receipt for the goods
the goods received will be delivered to the bearer or to the order of any
person named in such receipt is a negotiable receipt.
No provision shall be inserted in a negotiable receipt that it is nonnegotiable. Such provision, if inserted shall be void.
(c) A readiness and willingness to sign, when the goods are delivered, an
acknowledgment that they have been delivered, if such signature is
negotiable receipt is issued for the same goods, the word duplicate shall
be plainly placed upon the face of every such receipt, except the first one
failure so to do to any one who purchased the subsequent receipt for value
(a) The person lawfully entitled to the possession of the goods, or his
whether such purchaser acquired title to the receipt before or after the
agent;
non-negotiable receipt issued for the goods, or who has written authority
from the person so entitled either indorsed upon the receipt or written
negotiable receipt and fails either to take up and cancel such receipt or to
place plainly upon it a statement of what goods or packages have been
delivered, he shall be liable to any one who purchases for value in good
faith such receipt, for failure to deliver all the goods specified in the
receipt, whether such purchaser acquired title to the receipt before or after
Sec. 13. Altered receipts. The alteration of a receipt shall not excuse the
warehouseman delivers the goods to one who is not in fact lawfully entitled
(a) Immaterial,
(b) Authorized, or
(b) Had information that the delivery about to be made was to one not
alteration.
of the receipt as originally issued, the goods for which it was issued but
which would transfer the right to the possession of the goods, and fails to
shall excuse him from any other liability to the person who made the
take up and cancel the receipt, he shall be liable to any one who purchases
alteration and to any person who took with notice of the alteration. Any
for value in good faith such receipt, for failure to deliver the goods to him,
purchaser of the receipt for value without notice of the alteration shall
acquire the same rights against the warehouseman which such purchaser
would have acquired if the receipt had not been altered at the time of
purchase.
claims. If someone other than the depositor or person claiming under him
has a claim to the title or possession of goods, and the warehouseman has
Sec. 14. Lost or destroyed receipts. Where a negotiable receipt has been
liability for refusing to deliver the goods, either to the depositor or person
of the goods upon satisfactory proof of such loss or destruction and upon
claiming under him or to the adverse claimant until the warehouseman has
person injured by such delivery may incur by reason of the original receipt
remaining outstanding. The court may also in its discretion order the
provided in the two preceding sections and in sections nine and thirty-six,
no right or title of a third person shall be a defense to an action brought by
The delivery of the goods under an order of the court as provided in this
the depositor or person claiming under him against the warehouseman for
whom the negotiable receipt has been or shall be negotiated for value
without notice of the proceedings or of the delivery of the goods.
Sec. 15. Effect of duplicate receipts. A receipt upon the face of which the
correspond with the description thereof in the receipt at the time of its
properly issued and uncanceled at the date of the issue of the duplicate,
certain kind or by words of like purport, such statements, if true, shall not
the possession of the goods, on the part of the warehouseman, unless such
make liable the warehouseman issuing the receipt, although the goods are
not of the kind which the marks or labels upon them indicate or of the kind
the warehousemans lien, shall excuse the warehouseman from liability for
refusing to deliver the goods according to the terms of the receipt.
Sec. 21. Liability for care of goods. A warehouseman shall be liable for
any loss or injury to the goods caused by his failure to exercise such care in
claims the title or possession of the goods, the warehouseman may, either
contrary, for any loss or injury to the goods which could not have been
to interplead.
Sec. 27. What claims are included in the warehousemans lien. Subject to
from goods of other depositors and from other goods of the same depositor
deposited or on the proceeds thereof in his hands, for all lawful charges for
for which a separate receipt has been issued, as to permit at all times the
storage and preservation of the goods; also for all lawful claims for money
and for sale of the goods where default had been made in satisfying the
fungible goods with other goods of the same kind and grade. In such case,
warehousemans lien.
the various depositors of the mingled goods shall own the entire mass in
common and each depositor shall be entitled to such portion thereof as the
Sec. 28. Against what property the lien may be enforced. Subject to the
(a) Against all goods, whenever deposited, belonging to the person who is
The warehouseman shall be severally liable to each depositor for the care
liable as debtor for the claims in regard to which the lien is asserted, and
and redelivery of his share of such mass to the same extent and under the
same circumstances as if the goods had been kept separate.
(b) Against all goods belonging to others which have been deposited at any
time by the person who is liable as debtor for the claims in regard to which
Sec. 25. Attachment or levy upon goods for which a negotiable receipt has
the lien is asserted if such person had been so entrusted with the
possession of goods that a pledge of the same by him at the time of the
deposit to one who took the goods in good faith for value would have been
good faith for value would bind the owner, and a negotiable receipt is
valid.
issued for them, they can not thereafter, while in the possession of the
warehouseman, be attached by garnishment or otherwise, or be levied
Sec. 29. How the lien may be lost. A warehouseman loses his lien upon
goods:
Sec. 30. Negotiable receipt must state charges for which the lien is
shall have no lien thereon except for charges for storage of goods
enumerated other charges for which a lien is claimed. In such case, there
shall be a lien for the charges enumerated so far as they are within the
auction may be had to satisfy any valid claim of the warehouseman for
which he has a lien on the goods. The sale shall be had in the place where
the lien was acquired, or, if such place is manifestly unsuitable for the
purpose of the claim specified in the notice to the depositor has elapsed,
and advertisement of the sale, describing the goods to be sold, and stating
the name of the owner or person on whose account the goods are held,
goods may refuse to deliver the goods to him until the lien is satisfied.
and the time and place of the sale, shall be published once a week for two
consecutive weeks in a newspaper published in the place where such sale
is to be held. The sale shall not be held less than fifteen days from the time
entitled to all remedies allowed by law to a creditor against a debtor for the
the advertisement shall be posted at least ten days before such sale in not
collection from the depositor of all charges and advances which the
From the proceeds of such sale, the warehouseman shall satisfy his lien
including the reasonable charges of notice, advertisement and sale. The
At any time before the goods are so sold, any person claiming a right of
property or possession therein may pay the warehouseman the amount
(b) A brief description of the goods against which the lien exists,
(c) A demand that the amount of the claim as stated in the notice of such
further claim as shall accrue, shall be paid on or before a day mentioned,
not less than ten days from the delivery of the notice if it is personally
delivered, or from the time when the notice shall reach its destination,
according to the due course of post, if the notice is sent by mail,
(d) A statement that unless the claim is paid within the time specified, the
goods will be advertised for sale and sold by auction at a specified time
and place.
necessary to satisfy his lien and to pay the reasonable expenses and
liabilities incurred in serving notices and advertising and preparing for the
sale up to the time of such payment. The warehouseman shall deliver the
goods to the person making payment if he is a person entitled, under the
provision of this Act, to the possession of the goods on payment of charges
thereon. Otherwise, the warehouseman shall retain the possession of the
goods according to the terms of the original contract of deposit.
Sec. 34. Perishable and hazardous goods. If goods are of a perishable
nature, or by keeping will deteriorate greatly in value, or, by their order,
leakage, inflammability, or explosive nature, will be liable to injure other
property , the warehouseman may give such notice to the owner or to the
person in whose names the goods are stored, as is reasonable and possible
under the circumstances, to satisfy the lien upon such goods and to
remove them from the warehouse and in the event of the failure of such
deliver the goods to the order of a specified person, and such person or a
person to satisfy the lien and to receive the goods within the time so
specified, the warehouseman may sell the goods at public or private sale
without advertising. If the warehouseman, after a reasonable effort, is
unable to sell such goods, he may dispose of them in any lawful manner
bearer, any holder may indorse the same to himself or to any other
specified person, and, in such case, the receipt shall thereafter be
The proceeds of any sale made under the terms of this section shall be
disposed of in the same way as the proceeds of sales made under the
terms of the preceding section.
Sec. 35. Other methods of enforcing lien. The remedy for enforcing a lien
order the goods are, by the terms of the receipt, deliverable. Such
herein provided does not preclude any other remedies allowed by law for
the enforcement of a lien against personal property nor bar the right to
Sec. 36. Effect of sale. After goods have been lawfully sold to satisfy a
Sec. 39. Transfer of receipt. A receipt which is not in such form that it can
purchaser or donee.
(b) By any person to whom the possession or custody of the receipt has
been entrusted by the owner, if, by the terms of the receipt, the
warehouseman undertakes to deliver the goods to the order of the person
to whom the possession or custody of the receipt has been entrusted, or if,
at the time of such entrusting, the receipt is in such form that it may be
negotiated by delivery.
contrary intention appears. The negotiation shall take effect as of the time
thereby:
(a) Such title to the goods as the person negotiating the receipt to him had
or had ability to convey to a purchaser in good faith for value, and also
such title to the goods as the depositor or person to whose order the goods
(d) That he has a right to transfer the title to the goods and that the goods
notify the warehouseman of the transfer to him of such receipt and thereby
to acquire the direct obligation of the warehouseman to hold possession of
Sec. 45. Indorser not a guarantor. The indorsement of a receipt shall not
make the indorser liable for any failure on the part of the warehouseman or
previous indorsers of the receipt to fulfill their respective obligations.
goods and the right to acquire the obligation of the warehouseman may be
security, whether from a party to a draft drawn for such debt or from any
Sec. 47. When negotiation not impaired by fraud, mistake or duress. The
control at the time of issuing such receipt, shall be guilty of a crime, and,
validity of the negotiation of a receipt is not impaired by the fact that such
negotiation was a breach of duty on the part of the person making the
negotiation or by the fact that the owner of the receipt was induced by
both.
aids in fraudulently issuing a receipt for goods knowing that it contains any
false statement, shall be guilty of a crime, and upon conviction, shall be
under any sale or other disposition thereof to any person receiving the
same in good faith, for value and without notice of the previous sale,
former negotiable receipt for the same goods or any part of them is
mortgage or pledge, shall have the same effect as if the first purchaser of
outstanding and uncanceled, without plainly placing upon the face thereof
the word duplicate except in the case of a lost or destroyed receipt after
proceedings are provided for in section fourteen, shall be guilty of a crime,
has been issued for goods, no sellers lien or right of stoppage in transitu
not exceeding five years, or by a fine not exceeding ten thousand pesos, or
shall defeat the rights of any purchaser for value in good faith to whom
by both.
Sec. 53. Issue for warehousemans goods or receipts which do not state
cancellation.
IV CRIMINAL OFFENSES
been actually received by such warehouseman, or are not under his actual
Fungible goods means goods of which any unit is, from its nature by
a negotiable receipt the negotiation of which would transfer the right to the
about to be stored.
found guilty of a crime, and, upon conviction, shall be punished for each
offense by imprisonment not exceeding one year, or by a fine not
Sec. 55. Negotiation of receipt for mortgaged goods. Any person who
Sec. 61. Time when Act takes effect. This Act shall take effect ninety days
Sec. 3. No person shall engage in the business of receiving rice for storage
after its publication in the Official Gazette of the Philippines shall have
without first securing a license therefore from the Director of the Bureau of
been completed.
Commerce and Industry. Said license shall be annual and shall expire on
the thirty-first day of December.
receiving rice for storage shall set forth in the application the place or
PURPOSES
thirty-three and one third percent of the market value of the maximum
WAREHOUSE ACT.
Sec. 2. As used in this Act, the term warehouse shall be deemed to mean
any time the warehouseman is unable to return the rice or to pay its value.
for storage. The term rice shall be deemed to mean either palay in
and Industry before issuing a license under this Act, to satisfy himself
warehouse for which such license is applied for is suitable for the proper
storage of rice.
receiving rice for storage shall include (1) any contract or transaction
shall determine that a bond approved by him, is or any cause, has become
the rice delivered is to be milled for and on account of the owner thereof;
preceding section, and unless the same be given within the time fixed by a
or revoked.
warehouseman is obligated to return the rice of the same kind or pay its
value.
Sec. 6. Every person licensed under this Act to engage in the business of
receiving rice for storage shall insure the rice so received and stored
against fire.
Sec. 7. Any person injured by the breach of any obligation to secure which
Sec. 12. Any warehouseman licensed under this Act receiving a quantity of
a bond is given, under the provisions of this Act, shall be entitled to sue on
rice greater than that specified in his application and license, shall, upon
the bond in his own name in any court of competent jurisdiction to recover
Sec. 13. Any person entering into connivance or combination with any
warehouseman that is not licensed under this Act, with the purpose of
evading the provisions of section three of this Act, shall be deemed guilty
Sec. 8. Every warehouseman licensed under this Act shall receive for
of misdemeanor, and upon conviction thereof, shall be fined not more than
storage, so far as his license and the capacity of his warehouse permit, any
two hundred pesos or imprisonment for not more than one months, or
rice, of the kind customarily stored therein by him, which may be tendered
Sec. 14. The Director of the Bureau of Commerce and Industry may, after
facilities.
Sec. 9. Every warehouseman licensed under this Act shall keep a complete
provision of this Act or of the rules and regulations made by virtue thereof.
record of the rice received by him, of the receipts issued therefor of the
withdrawals, of the liquidations and of all receipts returned to and
contents, operations, and business thereof in such form and at such time
Marketing Law, provided such associations shall not receive, for storage,
as the said Director may require, and shall conduct said warehouse in all
other respects in compliance with this Act and the rules and regulations
to time make such rules and regulations as he may deem necessary for the
invalid, such judgment shall not affect, impair, or invalidate the remainder
Sec. 11. Any person engaging in the business of receiving rice for storage
Sec. 17. This Act shall take effect on January First, nineteen hundred and
imprisonment of not less than one month or by a fine of not more than five
thirty-two.
documents, or instruments for value and in good faith from the entrustee,
acquires said goods, documents or instruments free from the entruster's
security interest.
Section 12. Validity of entruster's security interest as against
creditors. The entruster's security interest in goods, documents, or
instruments pursuant to the written terms of a trust receipt shall be valid
as against all creditors of the entrustee for the duration of the trust receipt
agreement.
Section 13. Penalty clause. The failure of an entrustee to turn over the
proceeds of the sale of the goods, documents or instruments covered by a
trust receipt to the extent of the amount owing to the entruster or as
appears in the trust receipt or to return said goods, documents or
instruments if they were not sold or disposed of in accordance with the
terms of the trust receipt shall constitute the crime of estafa, punishable
under the provisions of Article Three hundred and fifteen, paragraph one
(b) of Act Numbered Three thousand eight hundred and fifteen, as
amended, otherwise known as the Revised Penal Code. If the violation or
offense is committed by a corporation, partnership, association or other
juridical entities, the penalty provided for in this Decree shall be imposed
upon the directors, officers, employees or other officials or persons therein
responsible for the offense, without prejudice to the civil liabilities arising
from the criminal offense.
Section 14. Cases not covered by this Decree. Cases not provided for in
this Decree shall be governed by the applicable provisions of existing laws.
Section 15. Separability clause. If any provision or section of this Decree
or the application thereof to any person or circumstance is held invalid, the
other provisions or sections hereof and the application of such provisions
or sections to other persons or circumstances shall not be affected thereby.
Section 16. Repealing clause. All Acts inconsistent with this Decree are
hereby repealed.
Section 17. This Decree shall take effect immediately.
Done in the City of Manila, this 29th day of January, in the year of Our Lord,
nineteen hundred and seventy-three.