In the Matter of Mercator Finance Corporation

January 31, 2012 SEC-CFD ORDER NO. 035-12 IN THE MATTER OF MERCATOR FINANCE CORPORATION FOR : Revocation of the Certificate of Authority (CA) to Operate as a Financing Company ORDER Records on file with this Commission show that the company failed to pay/submit the following in violation of the Financing Company Act, its Implementing Rules and Regulations and SEC Memorandum Circular/s: 1. Annual Fees for 2002 to 2010; aTCADc 2. Audited Financial Statements for 2000 to 2010; 3. Special Form of Financial Statements for 2006 and 2008; 4. Interim Financial Statements (2009, 1st and 2nd semesters and 2010, 1st and 2nd semesters); 5. General Information Sheets for 2001 and 2010; 6. Corporate Secretary's Certification on the Attendance of directors to board meetings (2005 to 2010); 7. Certification of Compliance Officer on the extent of the Company's Compliance with its Manual on Corporate Governance from 2005 to 2010; 8. Revised Anti-Money Laundering Operating Manual; 9. Revised Manual on Corporate Governance. Likewise, the company was required to infuse an additional capital of PhP445,503,000.00 but continuously failed to comply, in violation of Section 11 of the Rules and Regulations of R.A. No. 8556 (The Financing Company Act of 1998). Despite receipt of notice and demand letter dated 18 March 2011, no compliance has been made to date. Further, on 06 July 2011, show cause orders were sent to its principal office and to all directors/officers. The Order for the principal office was received on 22 July 2011. HaAISC Furthermore, the SEC Examiner reported that the company's principal address is presently occupied by a Law Office and that it has stopped its operation a long time ago. Even the security personnel of the last two (2) known addresses of the company informed the SEC Specialist that the company moved out from the building five (5) years ago. No forwarding address was left to Cityland Condominium since the company vacated the unit on 12 November 2010. Pursuant to the resolution of the Commission in its meeting on 19 January 2012, the company's Certificate of Authority to Operate as a Financing Company is hereby REVOKED. Let a copy of this Order be sent to the principal address of the company, the Quezon City Hall and posted in the Commission's official website for the information and guidance of the public. SO ORDERED. January 31, 2012, Mandaluyong City. (SGD.) JOCELYN C. VILLAR-ALTAMIRA Acting Director