Repealing Sections 9 and 12 (c) of R.A. No. 3779 As Amended

June 11, 1978

PRESIDENTIAL DECREE NO. 1539

REPEALING SECTIONS NINE AND SECTION TWELVE (C) OF REPUBLIC ACT NUMBERED THREE THOUSAND SEVEN HUNDRED SEVENTY-NINE, AS AMENDED, OTHERWISE KNOWN AS "THE SAVINGS AND LOAN ASSOCIATION ACT"

WHEREAS, Republic Act No. 3779, as amended, requires that a public hearing be held by the Central Bank for every application to establish a proposed savings and loan association or a branch thereof; cd

WHEREAS, the rationale behind this requirement was that, at the time of the passage of said Act, savings and loan associations were not under the supervision of the Central Bank and the savings and loan system as a whole had a poor image as a result of unscrupulous operators and organizers of so-called savings and loan associations;

WHEREAS, under the aegis of the Central Bank, the undesirable associations were weeded out and the savings and loan system has, since then, made tremendous progress and has regained the trust and confidence of the public;

WHEREAS, public hearing is not required of other financing institutions under the supervision of the Central Bank; and cd

WHEREAS, the removal of the requirement of public hearing will be in keeping the objective of uniformity, simplicity and equality of treatment of banking institutions of the same category;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order: cd i

SECTION 1.  Section nine and Subsection (c) of Section twelve of Republic Act No. 3779, as amended, otherwise known as the Savings and Loan Associations Act, are hereby repealed.

SECTION 2.  This Decree shall take effect immediately.

DONE in the City of Manila, this 11th day of June, in the year of Our Lord, Nineteen Hundred and Seventy-Eight.

Published in the Official Gazette, Vol. 75 No. 3 Page 441 on January 15, 1979.