CONGRESS OF THE PHILIPPINES
Second Regular Session
Begun and held in Metro Manila, on Monday, the twenty-second day of July, two thousand two. Republic Act No. 9182 December 23, 2002 AN ACT GRANTING TAX EXEMPTIONS AND FEE PRIVILEDGES TO SPECIAL PURPOSE VEHICLES WHICH ACQUIRE OR INVEST IN NON-PERFORMING ASSETS, SETTING THE REGULATORY FRAMEWORK THEREFOR, AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: ARTICLE 1
SECTION 1. Title. – This Act shall be known as "The Special Purpose Vehicle (SPV) Act of 2002". Section 2. Declaration of Policy. – It is hereby declared the policy of the state: (a) To develop and maintain a sound financial sector for the country; (b) To address the non-performing asset problems of the financial sector; (c) To encourage private sector investments in non-performing assets; (d) To eliminate existing barriers in the acquisition of non-performing assets (e) To help in the rehabilitation of distressed business with the end in view of contributing to economic value added; and (f) To improve the liquidity of the financial system which can be harnessed to propel economic growth. Section 3. Definition of Terms. – For Purpose of this Act, the term: (a) "Approval Certificate" means the certificate of approval or authority issued by the Commission to an application by an SPV to issue Investment Unit Instruments (IUIs), pursuant to the provisions of this Act. (b) "Approved Plan" means an SPV Plan for which an Approval Certificate has been issued by the Commission. (c) "BSP" refers to the Banko Sentral ng Pilipinas. (d) "Commission" refers to the Securities and Exchange Commission (e) "Financial Institutions or Ifs" means credit-granting institutions which shall be limited to the following: (1) the BSP;
(2) a bank as defined under Republic Act No.8791, also known as "The General Banking Law"; (3) a financing company as defined under Republic Act No. 8556, also known as "The Financing Company Act of 1998"; (4) an investment house as defined in Presidential Decree No. 129, also known as "The Investment Houses Law"; (5) government financial institutions (GFIs), which for purposes of this Act, shall be limited to the Philippine Deposit Insurance Corporation (PDIC), Land Bank of the Philippines (LBP), and Development Bank of the Philippines (DBP); (6) government-owned-or-controlled-corporations (GOCCs),which for purposes of this Act, shall be limited to the National Home Mortgage Finance Corporation (NHMFC), Home Guarantee Corporation (HGC), Home Development Mutual Fund (HDMF), Social Security System (SSS), Government Service Insurance System (GSIS), Trade and Investment Development Corporation (TIDCORP), Small Business Guarantee and Finance Corporation (SBGFC), Technology and Livelihood Resource Center (TLRC), Livelihood Corporation (LIVECOR), National Development Corporation (NDC), Quedan and Rural Credit Guarantee Corporation (QUEDANCOR), National Housing Authority (NHA), and Armed Forces of the Philippines- Retirement and Separation Benefits System (AFP-(RSBS); and (7) other institutions licensed by the BSP to perform quasi-banking functions. (f) "Investment Unit Instruments or IUIs" refers to participation certificates, debt instruments or similar instruments issued by the SPV and subscribed by Permitted Investors as provided in Section 11 hereof, pursuant to an Approved Plan: Provided, That these shall not include the instruments to be issued by the SPV to the selling FIs as full or partial settlement of the non-performing...