Mr. Antonio S. Jon

July 24, 1981 Mr. Antonio S. Jon Jon, Lopez & Co.,CPA Benedicto Bldg.,Iznart St. Iloilo City Dear Mr. Jon: This refers to your letter requesting opinion on whether a financing company without quasi-banking functions and duly registered with this Commission to engage in discounting and factoring of notes receivables can be allowed to engage in leasing activities. Ordinarily, a financing company registered under R. A. 5980 spells out in its primary purpose the financing activities it proposes to engage in. The Certificate of Authority to engage in financing business granted by the SEC to the financing company also states the same specific financing activities. If the primary purpose of the corporation and its Certificate of Authority allow it to engage in discounting and factoring of notes receivables as well as leasing, our answer to your query is in the affirmative. On the other hand, if only discounting and factoring of notes receivables are provided therein, excluding leasing, then the financing company cannot undertake the latter activities. Should you desire, however, to engage in leasing, an amendment to the articles of incorporation in accordance with the provisions of Section 16 of the Corporation Code of the Philippines as well as a petition for amendment of the certificate of authority to operate is necessary. Very truly yours, (SGD.) ROSARIO N. LOPEZ Director Corporate and Legal Department