Triumph Finance Corporation

February 11, 1983 Triumph Finance Corporation c/o Atty. Ramon C. Fernandez 2nd Floor, LPL Mansions 122 Alfaro St., Salcedo Village Makati, Metro Manila Gentlemen: This has reference to your letter dated January 28, 1983, requesting this Commission to reconsider the decision of the undersigned concerning the renewal of Certificate of Authority of TRIUMPH FINANCE CORPORATION (Cebu Branch), which certificate of authority expired on April 7, 1981. It appears from the records on file with this Commission that the Certificate of Authority of Triumph Finance Corporation (Cebu Branch) was issued on April 7, 1980 and has not been renewed for 1981 up to the present although an application for renewal was filed with this Commission on October 8, 1982. In connection thereto, justification letters dated December 5, 1982 and January 20, 1983 were received by this Commission with the request that the latter waive the penalty for late filing or, at the most impose a compromise penalty in the amount of Two Thousand (P2,000.00) Pesos. In this regard, please take note that the Certificate of Authority of a Financing Company under the rules and regulations regulating the organization and operation of financing companies provide that the "Certificate of Authority shall be renewable annually". Non-renewal thereof within the specified period results in its termination on the same date as "fixed by the statute or ordinance or by the licensing authorities acting within the statutory powers, and the licensee may exercise the rights and privileges granted by the license only for the terms specified". (53 C.J.S. p. 646). Such being the case, the non-renewal of the Certificate of Authority within the prescriptive period result in the automatic expiration of the same and could not, therefore, be subject to renewal because, in a sense, there would be nothing to renew. The Supreme Court thus held in Gonzalo Sy Trading vs. Central Bank (GR No.L-41480, April 30, 1976) that a license "cannot last beyond the life of the basic authority under which it was issued." Applying the aforequoted ruling, it can thus be said that a mere application for renewal is not sufficient considering that the former certificate of authority can no longer yield a valid effect, it having died a natural death. In view of the foregoing, you are therefore hereby advised to file a new application for Certificate of Authority of your Cebu Branch should you wish to operate in the said area. cdlex Very truly yours, (SGD.) JESUS J. VALDES Associate Commissioner