Atty. Ramon A. Barcelona

July 21, 1988 Atty. Ramon A. Barcelona Rooms 509-511, Madrigal Bldg. 286 Escolta St., Manila Sir : This refers to your letter dated July 14, 1988, requesting for certification that the Commission, prior to the issuance of certificate of incorporation of proposed corporations, requires the submission of a "deed of assignment" covering the transfer of real estate property used as payment for subscription. In connection therewith, please be advised that the Commission has adopted a policy that if payment of subscription is in the form of property, a deed of transfer of the property executed by the owner in favor of the treasurer, in trust for the proposed corporation, is required to be executed and attached to the incorporation papers. The SEC Requirements and Procedures, as amended on April 1974 , partly provides, thus: ". . ., If payment is made in property , this Commission inquires into the reasonableness of the valuation. Moreover, a deed of transfer in favor of the treasurer, in trust for the proposed corporation is required to be executed and attached to the incorporation papers." LibLex Very truly yours, (SGD.) JULIO A. SULIT, JR. Chairman