Community Relations Office

October 29, 1980 Community Relations Office c/o Mr. Enrique Est. Cube Office of the Mayor Caloocan City Gentlemen: This is to acknowledge receipt of your letter requesting opinion as to the necessity of registering the Handog Hakbang ng Kabataang Kalookan Scholarship Trust Funds with this Office. A cursory reading of the City Mayor's Executive Order Nos. 80-25 and 80-26 disclosed the following facts: An executive committee has organized for the purpose of generating funds for scholarship grants to poor but deserving Kalookan Youths in order to pursue academic studies or undergo manpower skills. This funds will come from donations and other kinds of financial assistance from the government, private entities and the public at large. Said contributions shall automatically go to a trust fund known as the Handog Hakbang ng Kabataang Kalookan Scholarship Trust Fund which shall be managed and supervised by an executive committee. If it is your intention to acquire a legal personality for the organization so that it shall have the capacity to act as a legal unit, to hold property and enter into contracts then the same must be registered with this Commission, otherwise, incorporation and registration with the Securities and Exchange Commission is not necessary. However, in both instances, before an organization may create a "trust fund" the trustees of the trust property must obtain a certificate of registration from the office of the Insurance Commission before entering in the performance of their duties. Therefore, your attention is invited to the relative provisions of the Insurance Code, particularly Sections 410, 411, 412 and 413, to wit: "SECTION 410. The term "Trust for charitable uses", within the intent of this Code, shall include, all real or personal properties or funds, as well as those acquired with the fruits or income therefrom or in exchange or substitution thereof, given to or received by any person, corporation, association, foundation, or entity, except the National Government, its instrumentalities or political subdivisions, for charitable, benevolent, educational, pious, religious, or other uses for the benefit of the public at large or a particular portion thereof or for the benefit of an indefinite number of persons." "SECTION 411. The term, "trustee" shall include any individual, corporation, association, foundation, or entity, except the National Government, its instrumentalities or political subdivisions, in charge of, or acting for, or concerned with the administration of, the trust referred to in the section immediately preceding and with the proper application of trust property." "SECTION 412. The term "trust property" shall include all real or personal properties or funds pertaining to the trust as well as those acquired with the fruits or income therefrom or in exchange of substitution thereof." LibLex "SECTION 413. All trustees shall, before entering in the performance of the duties of their trust, obtain a certificate of registration from the Commissioner." Please be guided accordingly. Very truly yours, (SGD.) ROSARIO N. LOPEZ Director Corporate and Legal Department