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from government owned or controlled corporations, and investments of private
financial institutions and corporations: Provided, That any investment from
the private sector shall only be in the form of preferred shares. The SB
Corporation shall likewise notify the national government of the former's need
for additional funding as may be necessary to meet its capitalization
requirements and to seek its assistance to facilitate the inflow of additional
equity funding from the foregoing sources.
Sec. 3. Grace period on Dividend Commitments. To allow for capital build-
up, SB Corporation shall be given a five (5)-year grace period in its cash
dividend commitments beginning on the date of effectivity of RA 9501.
Thereafter, it may only declare as dividend not more than 30% of its net
income and the rest withheld as retained earnings.
Rule 12
BSP Supervision and Examination and Venture Capital and Micro
Finance Trust Fund of the SB Corporation
SECTION 1. The SB Corporation shall be subject to the supervision and
examination of the Bangko Sentral ng Pilipinas taking into consideration its
developmental objectives. As such, the BSP shall implement the appropriate
system to supervise and examine the SB Corporation's quasi-banking
functions.
Sec. 2. Venture Capital and Micro Finance Trust Fund. The SB Corporation
may set aside an amount an amount of money to encourage the setting up
of programs on venture capital and on microfinance trust fund for the purpose
of promoting business opportunities available to the MSME sector. The
Venture Capital Fund shall be used mainly for venture capital finance especially
in technology-oriented industries. The micro finance trust fund shall be used
to provide collateral-free fixed and working capital loans to qualified micro and
small enterprises run by those emerging out of poverty. The venture capital
and micro finance trust fund shall be made available to the MSMEs in
partnership with SB Corporation's participating financial institutions (PFIs).
The micro finance trust may be used to provide wholesale funds to qualified
micro finance institutions providing collateral-free and household cash-flow
based loans to micro enterprises. In the case of the Venture Capital Fund,
priority shall be given to technology-oriented small industries with high potential
growth.
Summary :
The micro finance trust fund shall be used to provide collateral-free fixed and working capital loans to qualified micro and small enterprises run by those emerging out of poverty. The venture capital and micro finance trust fund shall be made available to the MSMEs in partnership with SB Corporation's participating financial institutions (PFIs). The micro finance trust may be used to provide wholesale funds to qualified micro finance institutions providing collateral-free and household cash-flow based loans to micro enterprises.
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