b) actual subscription of preferred shares of stock of the SB
c) wholesale lending to Participating Financial Institutions
(PFIS) for on-lending to MSMEs; or
d) purchase/discount of MSMEs receivables; or
e) loans granted to export, import, and domestic traders subject
to compliance with Section 3 of this Act; or
f) subscribe/purchase of liability instruments as may be offered
by the SB Corporation.
The Bangko Sentral ng Pilipinas shall formulate rules for the effective
implementation of this provision: Provided, That the purchase of government
notes, securities and other negotiable instruments shall not be deemed
compliance with the foregoing provisions: Provided, further, That the Bangko
Sentral ng Pilipinas shall establish an incentive program to encourage lending
to micro, small and medium industries beyond the mandatory credit allocation
to said enterprises, such as possible reduction in bank's reserve requirement.
The MSMED Council shall set up the appropriate systems to monitor
all loan applications of MSMEs in order to account for the absorptive capacity
of the MSME sector. The Bangko Sentral ng Pilipinas shall furnish to the
MSMED Council on a quarterly basis comprehensive reports on the banks'
compliance, noncompliance and penalties of the above provisions on the
mandatory credit allocation for MSMEs.
Lending institutions which are not qualified to acquire or hold lands
of the public domain in the Philippines shall be permitted to bid and take part
in sales of mortgaged real property in case of judicial or extra-judicial
foreclosure, as well as avail of receivership, enforcement and other proceedings,
solely upon default of a borrower, and for a period not exceeding five (5) years
from actual possession: Provided, That in no event shall title to the property
be transferred to such lending institution. If the lending institution is the winning
bidder, it may, during said five (5) year period, transfer its rights to a qualified
Philippine national, without prejudice to a borrower's rights under applicable
(RA 9501 through Sec. 18 amended Section 13 of RA 6977, as amended by
RA 8289, and renumbered it as Section 15)