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5. formulate means and methods of accepting alternative collaterals
and implementing alternative loan evaluation models;
6. apply for, receive, and accept grants and donations from sources
within and outside the country;
7. hold, own, purchase, acquire, sell, mortgage, dispose or otherwise
invest or re-invest in stocks, bonds, treasury bills, debentures,
securities and similar forms of indebtedness of the Government, its
agencies and instrumentalities or any government financial institution.
d) The SB Corporation may also engage in wholesale lending.
Rule 11
Capitalization and Funding of the SB Corporation
SECTION 1. SB Corporation's authorized Capital Stock.--The SB Corporation
shall have an authorized capital stock of Ten billion pesos
(Php10,000,000,000.00).
a) The initial capital of One billion pesos (Php1,000,000,000.00) shall
be established from a pool of funds to be contributed in the form of equity
investments in common stock by the Land Bank of the Philippines (LBP)
and the Development Bank of the Philippines (DBP), in the amount of
Two hundred million pesos (Php200,000,000.00) each.
b) The Social Security System (SSS) and the Government Service
Insurance System (GSIS) shall also set aside Two hundred million pesos
(Php200,000,000.00) each for the SB Corporation.
c) The authorized capital stock of the SB Corporation shall be divided
into Eighty million (80,000,000) common shares and Twenty million
(20,000,000) preferred shares with a par value of One hundred pesos
(Php100.00) per share: Provided, That the common shares which have
been issued, including those issued against the assets of the KKK
Guaranty Fund consolidated under the SB Corporation by virtue of
Executive Order No. 233, series of 2000 and Executive Order No. 19,
series of 2001 and including those already subscribed, shall form part of
the capitalization of the SB Corporation: Provided, further, that holders of
preferred shares issued under RA No. 6977, as amended, shall have the
option to convert the same into common shares.
Sec. 2. Additional Equity Funding. Additional equity funding shall come from
trust placements of excess and unused funds of existing government agencies,
bilateral and multilateral official development assistance funds, subscriptions