Mr. Antonio M. Ortiguera

September 9, 1981 Mr. Antonio M. Ortiguera Rural Bankers Association of the Philippines Aduana corner Arzobispo Sts. Intramuros, Manila Dear Mr. Ortiguera: This is in connection with your letter dated August 5, 1981 requesting that rural banks be exempted from payment of the daily penalties being imposed by this Office for their failure to comply with the Amended Rules Requiring the Filing of Information Sheet by Domestic Corporations dated September 11, 1979, allegedly because said rules were published only in newspapers of general circulation based in Metro-Manila which did not reach the great majority of rural banks in the far-flung rural areas; that said regulations did not normally pass the Department of Rural Banks and Savings and Loan Associations of the Central Bank of the Philippines; and that the daily penalties are very burdensome because of the present adverse economic condition enveloping the rural banking system so that a great number of them are in the process of rehabilitation. cdll The Commission has consistently and strictly enforced the Amended Rules Requiring the Filing of Information Sheet and no entity can claim exemption from compliance therewith because of the necessity for such information to be made available to the public. However, the Commission, may for justifiable reasons, exempt a corporation from paying the necessary penalty. (Cf. Sec. 8, Amended Rules) Considering that the reasons adduced in your letter appear to be meritorious and justifiable, we are constrained to grant your request. However, rural banks are given up to December 31, 1981 within which to furnish the Commission with their 1980 and 1981 General Information Sheet and Minutes of the Annual Meeting of the Stockholders and Board of Directors for the election of their directors and officers, respectively, without the daily penalty . Thereafter, violations of the Amended Rules by rural banks shall be subject to the necessary basic and daily penalties prescribed in said rules. Please be advised accordingly. Very truly yours, (SGD.) ROSARIO N. LOPEZ Associate Commissioner