AN ORDINANCE REQUIRING ALL PRIVATE PERSONS ENGAGED IN MONEY LENDING FOR INTEREST TO REGISTER AND SECURE THE MAYOR AND BUSINESS PERMIT.
Authored by: Hon. Pablo A. Baluma
Co-Sponsored by: Hon. Ma. Nenita R. Chiu
Hon. Mary Annie G. Jabines
WHEREAS, it is one of the duties of the Sangguniang Bayan as the legislative body on the municipality to enect ordinances, approve resolutions and appropriate funds for the promotion of public welfare of the municipality and its inhabitants;
WHEREAS, some private money lenders are lending money for interest at exerbitants and usurious rates to the extent of crippling the marginal income from livelihood of many Maribojochanons;
WHEREAS, the Usury Law otherwise known as Act. No. 2655 provides the rate of interest for the loan and forbearance of any money, goods or credits on such rate as many be prescribed by the Monetary Board of the Central Bank of the Philippines;
WHEREAS, at present economic and social conditions, the provision of the Usury Law can not be enforced due to the insufficiency of money;
WHEREFORE, be it ordained by the Sangguniang Bayan in its assembled session that;
Sec.1- It shall be unlawful to any person or persons to engage in the business of money lending for interest without securing the mayor and business permits.
Sec.2- As business permit fee, the amount of One Thousand Five Hundred Pesos (P1,500.00) per annum shall be collected by the Municipal Treasurer from every person or persons engaged in the business of money lending for interest.
Sec.3- As prerequisite for the issuance of business permit to engage in money lending, aside from the official receipt evidencing payment for permit fee, business applicants are required to present the copies:
a.) interest rate
b.) income from return to be submitted after three months
c.) financial statement to be submitted after one year
d.) police clearance
e.) barangay clearance
Sec.4- Rate of interest for money lending shall not exceed the rate charged by private commercial banks.
Sec.5- Accredited and CDA registered lending cooperatives shall be included from this ordinance.
Sec.6- Any person or persons found violating this ordinance shall be fined of not more than two thousand five hundred pesos or an imprisonment of not more than six months or both at the discretion of the court.
Sec.7- This ordinance shall take effect upon its approval.
Approved: May 31, 1993
Let copies be furnished to all concerned, Maribojoc, Bohol.
PHILIP R. MEDEQUISO
ALBERTO E. ARANGOSO
ATTY. JOSE E. VELOSO
Date signed: June 8, 1993