Mr. Dominador L. Teruel, Sr.

January 19, 1996 Mr. Dominador L. Teruel, Sr. B.F.(Paraaque) Homeowners Association, Inc. No. 37 P. Banzon St., BF Homes, Paraaque, Metro Manila S i r : This refers to your letter requesting clarification on which government agency, the Home Insurance Guaranty Corporation (HIGC) or the Securities and Exchange Commission (SEC), has the jurisdiction over UNITED BF HOMEOWNERS ASSOCIATION, INC. (UBFHAI), allegedly a confederation of homeowners association, and at the same time requesting the immediate transfer of its corporate records to the SEC alleging that it was erroneously registered with the HIGC. prcd As stated, the Office of the Government Corporate Counsel, in a letter dated December 12, 1990 addressed to the Home Insurance Guaranty Corporation ( Opinion No. 324, Series of 1990 ), had already opined that the HIGC does not have the authority to register a " confederation of homeowners association " as a " confederation " is a different body politic from a mere " homeowners association " as defined under the Revised Rules on Registration of Homeowners Association implementing Executive Order No. 535. While we agree with the foregoing opinion, we regret to inform you that unless the above-mentioned Confederation is registered with the SEC pursuant to the provision of the Corporation Code, the SEC has no legal basis to assume jurisdiction over the same. The scope of the Commission's jurisdiction is clearly defined under Section 5 of P.D. 902-A, as amended, quoted in part hereunder: "SECTION 5. In addition to the regulatory and adjudicative functions of the Securities and Exchange Commission over corporations, partnership and other forms of associations REGISTERED WITH IT as expressly granted under existing laws and decrees, it shall have original and exclusive jurisdiction to hear and decide cases involving: . . ." (Emphasis supplied) Accordingly, should the above Confederation desire to be placed under the jurisdiction of the SEC, it should first be incorporated/registered as a non-stock corporation in accordance with the provisions of the Corporation Code . LibLex Very truly yours, (SGD.) PERFECTO R. YASAY Acting Chairman