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SEC
- CFD MEMORANDUM
CIRCULAR NO. 003
Series
of 2001
TO
: FINANCING COMPANIES
SUBJECT : DISCLOSURE
STATEMENT ON LOAN/ CREDIT TRANSACTION
In order to regulate the activities of financing and leasing
companies and to place their operations on a sound, competitive and stable basis
as well as to curtail or prevent acts or practices prejudicial to the public
interest by a full disclosure of the true cost of credit to the borrower or
user, the Commission, by virtue of the
powers vested upon it by existing laws, hereby promulgates the following:
A. A “Disclosure
Statement on Loan/Credit Transaction (sample form attached) is hereby prescribed
for use by Financing Companies (FCs).
B.
Such Disclosure Statement, in duplicate, shall be duly signed by the
borrower and by the duly authorized signatory/ries of the Financing Companies
prior to the release of his loan.
A copy shall be kept in the company’s premises which shall be open to
inspection by the SEC or its duly authorized representative/s at any time during
office hours and the other copy shall be given to such borrower.
Non-compliance
with this Circular shall subject the creditor concerned to the following
penalties:
a)
First Offense – Basic fine of P20,000.00 and
P100.00 for each day of continuing violation
b)
Second Offense – Basic fine of P25,000.00 and P100.00 for each day of
continuing violation
c)
Third Offense – Basic fine of P30,000.00 and
P100.00 for each day of continuing violation
d)
Fourth Offense – Suspension/revocation of the certificate of
authority to operate as a financing company.
This Circular shall take
effect fifteen (15) days after publication in a newspaper of general
circulation.
EDSA,
Mandaluyong City, Metro Manila
March
30 , 2001.
Original Signed
LILIA R. BAUTISTA
Chairman
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