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B.M. No. 2012 February 10, 2009

RULE ON MANDATORY LEGAL AID SERVICE

SECTION 1. Title. - This Rule shall be known as "The Rule on Mandatory Legal Aid Service."

SECTION 2. Purpose. - This Rule seeks to enhance the duty of lawyers to society as agents of socialchange and to the courts as officers thereof by helping improve access to justice by the less privilegedmembers of society and expedite the resolution of cases involving them. Mandatory free legal service by

members of the bar and their active support thereof will aid the efficient and effective administration ofjustice especially in cases involving indigent and pauper litigants.

SECTION 3. Scope. - This Rule shall govern the mandatory requirement for practicing lawyers to renderfree legal aid services in all cases (whether, civil, criminal or administrative) involving indigent and pauperlitigants where the assistance of a lawyer is needed. It shall also govern the duty of other members of thelegal profession to support the legal aid program of the Integrated Bar of the Philippines.

SECTION 4. Definition of Terms. - For purposes of this Rule:

(a) Practicing lawyers are members of the Philippine Bar who appear for and in behalf of parties incourts of law and quasi-judicial agencies, including but not limited to the National Labor Relations

Commission, National Conciliation and Mediation Board, Department of Labor and EmploymentRegional Offices, Department of Agrarian Reform Adjudication Board and National Commission forIndigenous Peoples. The term "practicing lawyers" shall exclude:

(i) Government employees and incumbent elective officials not allowed by law to practice;

(ii) Lawyers who by law are not allowed to appear in court;

(iii) Supervising lawyers of students enrolled in law student practice in duly accredited legalclinics of law schools and lawyers of non-governmental organizations (NGOs) and peoplesorganizations (POs) like the Free Legal Assistance Group who by the nature of their workalready render free legal aid to indigent and pauper litigants and

(iv) Lawyers not covered under subparagraphs (i) to (iii) including those who are employedin the private sector but do not appear for and in behalf of parties in courts of law and quasi-

judicial agencies.

(b) Indigent and pauper litigants are those defined under Rule 141, Section 19 of the Rules of CourtandAlgura v. The Local Government Unit of the City of Naga (G.R. No.150135, 30 October 2006,506 SCRA 81);

(c) Legal aid cases are those actions, disputes, and controversies that are criminal, civil andadministrative in nature in whatever stage wherein indigent and pauper litigants need legalrepresentation;

(d) Free legal aid services refer to appearance in court or quasi-judicial body for and in behalf of anindigent or pauper litigant and the preparation of pleadings or motions. It shall also coverassistance by a practicing lawyer to indigent or poor litigants in court-annexed mediation and inother modes of alternative dispute resolution (ADR). Services rendered when a practicing lawyer isappointed counsel de oficio shall also be considered as free legal aid services and credited ascompliance under this Rule;

(e) Integrated Bar of the Philippines (IBP) is the official national organization of lawyers in thecountry;

(f) National Committee on Legal Aid(NCLA) is the committee of the IBP which is specifically taskedwith handling legal aid cases;
http://www.lawphil.net/judjuris/juri2006/oct2006/gr_150135_2006.htmlhttp://www.lawphil.net/judjuris/juri2006/oct2006/gr_150135_2006.html


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(g) Committee on Bar Discipline (CBD) is the committee of the IBP which is specifically tasked withdisciplining members of the Bar;

(h) IBP Chapters are those chapters of the Integrated Bar of the Philippines located in the differentgeographical areas of the country as defined in Rule 139-A and

(i) Clerk of Courtis the Clerk of Court of the court where the practicing lawyer rendered free legalaid services. In the case of quasi-judicial bodies, it refers to an officer holding an equivalent orsimilar position.

The term shall also include an officer holding a similar position in agencies exercising quasi-judicialfunctions, or a responsible officer of an accredited PO or NGO, or an accredited mediator whoconducted the court-annexed mediation proceeding.

SECTION 5. Requirements. -

(a) Every practicing lawyer is required to render a minimum of sixty (60) hours of free legal aidservices to indigent litigants in a year. Said 60 hours shall be spread within a period of twelve (12)months, with a minimum of five (5) hours of free legal aid services each month. However, where itis necessary for the practicing lawyer to render legal aid service for more than five (5) hours in onemonth, the excess hours may be credited to the said lawyer for the succeeding periods.

For this purpose, a practicing lawyer shall coordinate with the Clerk of Court for cases where hemay render free legal aid service. He may also coordinate with the IBP Legal Aid Chairperson of theIBP Chapter to inquire about cases where he may render free legal aid service. In this connection,the IBP Legal Aid Chairperson of the IBP Chapter shall regularly and actively coordinate with theClerk of Court.

The practicing lawyer shall report compliance with the requirement within ten (10) days of the lastmonth of each quarter of the year.

(b) A practicing lawyer shall be required to secure and obtain a certificate from the Clerk of Courtattesting to the number of hours spent rendering free legal aid services in a case.

The certificate shall contain the following information:

(i) The case or cases where the legal aid service was rendered, the party or parties in thesaid case(s) for whom the service was rendered, the docket number of the said case(s) andthe date(s) the service was rendered.

(ii) The number of hours actually spent attending a hearing or conducting trial on aparticular case in the court or quasi-judicial body.

(iii) The number of hours actually spent attending mediation, conciliation or any other modeof ADR on a particular case.

(iv) A motion (except a motion for extension of time to file a pleading or for postponement ohearing or conference) or pleading filed on a particular case shall be considered as one (1)hour of service.

The Clerk of Court shall issue the certificate in triplicate, one (1) copy to be retained by thepracticing lawyer, one (1) copy to be retained by the Clerk of Court and one (1) copy to beattached to the lawyer's compliance report.

(c) Said compliance report shall be submitted to the Legal Aid Chairperson of the IBP Chapter withinthe courts jurisdiction. The Legal Aid Chairperson shall then be tasked with immediately verifyingthe contents of the certificate with the issuing Clerk of Court by comparing the copy of thecertificate attached to the compliance report with the copy retained by the Clerk of Court.


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(d) The IBP Chapter shall, after verification, issue a compliance certificate to the concerned lawyer.The IBP Chapter shall also submit the compliance reports to the IBPs NCLA for recording anddocumentation. The submission shall be made within forty-five (45) days after the mandatorysubmission of compliance reports by the practicing lawyers.

(e) Practicing lawyers shall indicate in all pleadings filed before the courts or quasi-judicial bodiesthe number and date of issue of their certificate of compliance for the immediately precedingcompliance period. Failure to disclose the required information would cause the dismissal of thecase and the expunction of the pleadings from the records.

(f) Before the end of a particular year, lawyers covered by the category under Section 4(a)(i) and(ii), shall fill up a form prepared by the NCLA which states that, during that year, they are employedwith the government or incumbent elective officials not allowed by law to practice or lawyers whoby law are not allowed to appear in court.

The form shall be sworn to and submitted to the IBP Chapter or IBP National Office together withthe payment of an annual contribution of Two Thousand Pesos (P2,000). Said contribution shallaccrue to a special fund of the IBP for the support of its legal aid program.

(g) Before the end of a particular year, lawyers covered by the category under Section 4(a)(iii) shallsecure a certification from the director of the legal clinic or of the concerned NGO or PO to theeffect that, during that year, they have served as supervising lawyers in a legal clinic or actively

participated in the NGOs or POs free legal aid activities. The certification shall be submitted to theIBP Chapter or IBP National Office.

(h) Before the end of a particular year, lawyers covered by the category under Section 4(a)(iv) shallfill up a form prepared by the NCLA which states that, during that year, they are neither practicinglawyers nor covered by Section (4)(a)(i) to (iii). The form shall be sworn to and submitted to the IBPChapter or IBP National Office together with the payment of an annual contribution of Four

Thousand Pesos (P4,000) by way of support for the efforts of practicing lawyers who rendermandatory free legal aid services. Said contribution shall accrue to a special fund of the IBP for thesupport of its legal aid program.

(i) Failure to pay the annual contribution shall subject the lawyer to a penalty of Two ThousandPesos (P2,000) for that year which amount shall also accrue to the special fund for the legal aidprogram of the IBP.

SECTION 6. NCLA. -

(a) The NCLA shall coordinate with the various legal aid committees of the IBP local chapters for theproper handling and accounting of legal aid cases which practicing lawyers can represent.

(b) The NCLA shall monitor the activities of the Chapter of the Legal Aid Office with respect to thecoordination with Clerks of Court on legal aid cases and the collation of certificates submitted bypracticing lawyers.

(c) The NCLA shall act as the national repository of records in compliance with this Rule.

(d) The NCLA shall prepare the following forms: certificate to be issued by the Clerk of Court andforms mentioned in Section 5(e) and (g).

(e) The NCLA shall hold in trust, manage and utilize the contributions and penalties that will be paidby lawyers pursuant to this Rule to effectively carry out the provisions of this Rule. For this purposeit shall annually submit an accounting to the IBP Board of Governors.

The accounting shall be included by the IBP in its report to the Supreme Court in connection with itsrequest for the release of the subsidy for its legal aid program.


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SECTION 7. Penalties. -

(a) At the end of every calendar year, any practicing lawyer who fails to meet the minimumprescribed 60 hours of legal aid service each year shall be required by the IBP, through the NCLA,to explain why he was unable to render the minimum prescribed number of hours. If no explanationhas been given or if the NCLA finds the explanation unsatisfactory, the NCLA shall make a reportand recommendation to the IBP Board of Governors that the erring lawyer be declared a member ofthe IBP who is not in good standing. Upon approval of the NCLAs recommendation, the IBP Board oGovernors shall declare the erring lawyer as a member not in good standing. Notice thereof shall be

furnished the erring lawyer and the IBP Chapter which submitted the lawyers compliance report orthe IBP Chapter where the lawyer is registered, in case he did not submit a compliance report. Thenotice to the lawyer shall include a directive to pay Four Thousand Pesos (P4,000) penalty whichshall accrue to the special fund for the legal aid program of the IBP.

(b) The "not in good standing" declaration shall be effective for a period of three (3) months fromthe receipt of the erring lawyer of the notice from the IBP Board of Governors. During the saidperiod, the lawyer cannot appear in court or any quasi-judicial body as counsel. Provided, however,that the "not in good standing" status shall subsist even after the lapse of the three-month perioduntil and unless the penalty shall have been paid.

(c) Any lawyer who fails to comply with his duties under this Rule for at least three (3) consecutiveyears shall be the subject of disciplinary proceedings to be instituted motu proprio by the CBD. The

said proceedings shall afford the erring lawyer due process in accordance with the rules of the CBDand Rule 139-B of the Rules of Court. If found administratively liable, the penalty of suspension inthe practice of law for one (1) year shall be imposed upon him.

(d) Any lawyer who falsifies a certificate or any form required to be submitted under this Rule orany contents thereof shall be administratively charged with falsification and dishonesty and shall besubject to disciplinary action by the CBD. This is without prejudice to the filing of criminal chargesagainst the lawyer.

(e) The falsification of a certificate or any contents thereof by any Clerk of Court or by anyChairperson of the Legal Aid Committee of the IBP local chapter where the case is pending or by theDirector of a legal clinic or responsible officer of an NGO or PO shall be a ground for anadministrative case against the said Clerk of Court or Chairperson. This is without prejudice to the

filing of the criminal and administrative charges against the malfeasor.

SECTION 8. Credit for Mandatory Continuing Legal Education (MCLE). - A lawyer who rendersmandatory legal aid service for the required number of hours in a year for the three year-period coveredby a compliance period under the Rules on MCLE shall be credited the following: two (2) credit units forlegal ethics, two (2) credit units for trial and pretrial skills, two (2) credit units for alternative disputeresolution, four (4) credit units for legal writing and oral advocacy, four (4) credit units for substantive andprocedural laws and jurisprudence and six (6) credit units for such subjects as may be prescribed by theMCLE Committee under Section 2(9), Rule 2 of the Rules on MCLE.

A lawyer who renders mandatory legal aid service for the required number of hours in a year for at leasttwo consecutive years within the three year-period covered by a compliance period under the Rules on

MCLE shall be credited the following: one (1) credit unit for legal ethics, one (1) credit unit for trial andpretrial skills, one (1) credit unit for alternative dispute resolution, two (2) credit units for legal writing andoral advocacy, two (2) credit units for substantive and procedural laws and jurisprudence and three (3)credit units for such subjects as may be prescribed by the MCLE Committee under Section 2(g), Rule 2 ofthe Rules on MCLE.

SECTION 9. Implementing Rules. - The IBP, through the NCLA, is hereby given authority to recommendimplementing regulations in determining who are "practicing lawyers," what constitute "legal aid cases"and what administrative procedures and financial safeguards which may be necessary and proper in theimplementation of this rule may be prescribed. It shall coordinate with the various legal chapters in thecrafting of the proposed implementing regulations and, upon approval by the IBP Board of Governors, thesaid implementing regulations shall be transmitted to the Supreme Court for final approval.


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SECTION 10. Effectivity. - This Rule and its implementing rules shall take effect on July 1,2009 after theyhave been published in two (2) newspapers of general circulation.

REPUBLIC ACT NO. 9999. FREE LEGAL ASSISTANCE ACT OF 2010

Section 1.Short Title. - This Act shall be known as the "Free Legal Assistance Act of 2010".

Section 2.Declaration of Policy. - It is the declared policy of the State to value the dignity of every humanperson and guarantee the rights of every individual, particularly those who cannot afford the services of

legal counsel.

Furthermore, it is the policy of the State to promote a just and dynamic social order that will ensure theprosperity and independence of the nation and free the people from poverty through policies andprograms that provide adequate social services and improve the quality of life for all.

In addition, the State shall guarantee free legal assistance to the poor and ensure that every person whocannot afford the services of a counsel is provided with a competent and independent counsel preferablyof his/her own choice, if upon determination it appears that the party cannot afford the services of acounsel, and that services of a counsel are necessary to secure the ends of justice and protect of theparty.

Section 3.Definition of Terms. - As provided for in this Act, the term legal services to be performed by alawyer refers to any activity which requires the application of law, legal procedure, knowledge, trainingand experiences which shall include, among others, legal advice and counsel, and the preparation ofinstruments and contracts, including appearance before the administrative and quasi-judicial offices,bodies and tribunals handling cases in court, and other similar services as may be defined by the SupremeCourt.

Section 4.Requirements for Availment. - For purposes of availing of the benefits and services asenvisioned in this Act, a lawyer or professional partnership shall secure a certification from the PublicAttorney's Office (PAO), the Department of Justice (DOJ) or accredited association of the Supreme Courtindicating that the said legal services to be provided are within the services defined by the Supreme Court,and that the agencies cannot provide the legal services to be provided by the private counsel.

For purpose of determining the number of hours actually provided by the lawyer and/or professional firm inthe provision of legal services, the association and/or organization duly accredited by the Supreme Courtshall issue the necessary certification that said legal services were actually undertaken.

The certification issued by, among others, the PAO, the DOJ and other accredited association by theSupreme Court shall be submitted to the Bureau of Internal Revenue (BIR) for purposes of availing the taxdeductions as provided for in this Act and to the DOJ for purposes of monitoring.

Section 5.Incentives to Lawyers. - For purposes of this Act, a lawyer or professional partnershipsrendering actual free legal services, as defined by the Supreme Court, shall be entitled to an allowablededuction from the gross income, the amount that could have been collected for the actual free legalservices rendered or up to ten percent (10%) of the gross income derived from the actual performance ofthe legal profession, whichever is lower: Provided, That the actual free legal services herein contemplated

shall be exclusive of the minimum sixty (60)-hour mandatory legal aid services rendered to indigentlitigants as required under the Rule on Mandatory Legal Aid Services for Practicing Lawyers, under BARMatter No. 2012, issued by the Supreme Court.

Section 6.Information, Education and Communication (IEC) Campaign. - The DOJ, in cooperation with thePhilippine Information Agency (PIA), is hereby mandated to conduct an annual IEC campaign in order toinform the lawyers of the procedures and guidelines in availing tax deductions and inform the generalpublic that a free legal assistance to those who cannot afford counsel is being provided by theState.1avvph!1


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Section 7.Reportorial Requirement. - For purposes of determining the effectiveness and social impact ofthe provisions of this Act, the DOJ shall submit an annual report to both Houses of Congress indicatingtherewith the number of parties who benefited from this Act.

The report shall state in detail, among others, the geographic location, demographic characteristics andsocioeconomic profile of the beneficiaries of this Act.

Section 8.Implementing Rules and Regulations (IRR). - Within ninety (90) days from the date effectivityof this Act, the BIR shall formulate the necessary revenue regulations for the proper implementation of the

tax component as envisioned in this Act.

The Supreme Court shall formulate the necessary implementing rules and regulations with respect to thelegal services covered under this Act and the process of accreditation of organizations and/or associationswhich will provide free legal assistance.

Section 9.Separability Clause. - If any provision of this Act is declared unconstitutional or invalid, theother provisions not affected by such declaration shall remain in full force and effect.

Section 10.Repealing Clause. - Any law, decree, ordinance or administrative circular not consistent withany provision of this Act is hereby amended, repealed or modified accordingly.

Section 11.Effectivity Clause. - This Act shall take effect fifteen (15) days after its complete publication inthe Official Gazette or in two (2) newspapers of general circulation.

REPUBLIC ACT No. 6033

AN ACT REQUIRING COURTS TO GIVE PREFERENCE TO CRIMINAL CASES WHERE THE PARTY ORPARTIES INVOLVE ARE INDIGENTS.

Section 1. Any provision of existing law to be contrary notwithstanding and with the exception of habeascorpus and election cases and cases involving detention prisoners, and persons covered by Republic ActNumbered Four thousand nine hundred eight, all courts shall give preference to the hearing and/ordisposition of criminal cases where an indigent is involved either as the offended party or accused. Thetrial in these cases shall commence within three days from date of arraignment and no postponement ofthe hearings shall be granted except on the ground of illness of the accused or other similar justifiablegrounds. City and provincial fiscals and courts shall forthwith conduct the preliminary investigation of acriminal case involving an indigent within three days after its filing and shall terminate the same withintwo weeks.

Section 2. As used in this Act, the term "indigent" shall refer to a person who has no visible means ofincome or whose income is insufficient for the subsistence of his family, to be determined by the fiscal or

judge, taking into account the members of his family dependent upon him for subsistence.

Section 3. An indigent who is the offended party, respondent or an accused in a criminal case and whodesires to avail of the preference granted under this Act shall file a sworn statement of the fact of his beingindigent and the said sworn statement shall be sufficient basis for the court or fiscal to give preference tothe trial and disposition of such criminal case.

Section 4. Any willful or malicious refusal on the part of any fiscal or judge to carry out the provisions ofthis Act shall constitute sufficient ground for disciplinary action which may include suspension or removal.

Section 5. This Act shall take effect upon its approval. Approved: August 4, 1969.



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AN ACT REQUIRING STENOGRAPHERS TO GIVE FREE TRANSCRIPT OF NOTES TO INDIGENT ANDLOW INCOME LITIGANTS AND PROVIDING A PENALTY FOR THE VIOLATION THEREOF.

Section 1. A stenographer who has attended a hearing before an investigating fiscal or trial judge orhearing commissioner of any quasi-judicial body or administrative tribunal and has officially taken notes ofthe proceeding thereof shall, upon written request of an indigent or low income litigant, his counsel or dulyauthorized representative in the case concerned, give within a reasonable period to be determined by thefiscal, judge, commissioner or tribunal hearing the case, a free certified transcript of notes take by him onthe case.

Section 2. A litigant who desires to avail himself of the privilege granted under Section one hereof shall,at the investigation, hearing, or trial, establish his status as an indigent or low income litigant and theinvestigating fiscal or judge or commissioner or tribunal hearing the case shall resolve the same in thesame proceeding.

For the purpose of this Act, an "indigent or low income litigant" shall include anyone who has no visiblemeans of support or whose income does not exceed P300 per month or whose income even in excess ofP300 per month is insufficient for the subsistence of his family, which fact shall be determined by theinvestigating fiscal or trial judge or commissioner or tribunal hearing the case taking into account thenumber of the members of his family dependent upon him for subsistence.

Section 3. Any stenographer who, after due hearing in accordance with the pertinent provisions of

Republic Act No. 2260, as amended, has been found to have violated the provisions of Section one of thisAct or has unreasonable delayed the giving of a free certified transcript of notes to an indigent or lowincome litigant shall be subject to the following disciplinary actions:

(a) suspension from office for a period not exceeding thirty (30) days upon finding of guilt for thefirst time;

(b) suspension from office for not less than thirty (30) days and not more than sixty (60) days uponfinding of guilt for the second time; and

(c) removal from office upon finding of guilt for the third time.

Section 4. This Act shall apply to all indigent or low income litigants who, at the time of its approval, havepending cases in any fiscal office, court, or quasi-judicial body or administrative tribunal.

Section 5. The Department of Justice shall prescribe such rules and regulations as may be necessary tocarry out the purposes of this Act, and the Department Head concerned shall provide the necessarysupplies and authorize the use of government equipment by the stenographers concerned.

Section 6. This Act shall take effect upon its approval. Approved: August 4, 1969.


AN ACT PROVIDING THAT BAIL SHALL NOT, WITH CERTAIN EXCEPTIONS, BE REQUIRED IN CASES

OF VIOLATIONS OF MUNICIPAL OR CITY ORDINANCES AND IN CRIMINAL OFFENSES WHEN THEPRESCRIBED PENALTY FOR SUCH OFFENSES IS NOT HIGHER THAN ARRESTO MAYOR AND/OR AFINE OF TWO THOUSAND PESOS OR BOTH.

Section 1. Any provision of existing law to the contrary notwithstanding, bail shall not be required of aperson charged with violation of a municipal or city ordinance, a light felony and/or a criminal offense theprescribed penalty for which is not higher than six months imprisonment and/or a fine of two thousandpesos, or both, where said person has established to the satisfaction of the court or any other appropriateauthority hearing his case that he is unable to post the required cash or bail bond, except in the followingcases:

(a) When he is caught committing the offense in flagranti;


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(b) When he confesses to the commission of the offense unless the confession is later repudiatedby him in a sworn statement or in open court as having been extracted through force orintimidation;

(c) When he is found to have previously escaped from legal confinement, evaded sentence, orjumped bail;

(d) When he is found to have previously violated the provisions of Section 2 hereof;

(e) When he is found to be a recidivist or a habitual delinquent or has been previously convicted foran offense to which the law or ordinance attaches an equal or greater penalty or for two or moreoffenses to which it attaches a lighter penalty;

(f) When he commits the offense while on parole or under conditional pardon; and

(g) When the accused has previously been pardoned by the municipal or city mayor for violation ofmunicipal or city ordinance for at least two times.

Section 2. Instead of bail, the person charged with any offense contemplated by Section 1 hereof shall berequired to sign in the presence of two witnesses of good standing in the community a sworn statementbinding himself, pending final decision of his case, to report to the Clerk of the Court hearing his case

periodically every two weeks. The Court may, in its discretion and with the consent of the person charged,require further that he be placed under the custody and subject to the authority of a responsible citizen inthe community who may be willing to accept the responsibility. In such a case the affidavit hereinmentioned shall include a statement of the person charged that he binds himself to accept the authority ofthe citizen so appointed by the Court. The Clerk of Court shall immediately report the presence of theaccused person to the Court. Except when his failure to report is for justifiable reasons includingcircumstances beyond his control to be determined by the Court, any violation of this sworn statementshall justify the Court to order his immediate arrest unless he files bail in the amount forthwith fixed by theCourt.

Section 3. This Act shall apply to all person who, at the time of its approval, are under temporarydetention for inability to post bail for charges contemplated by Section 1 above.

Section 4. This Act shall take effect upon its approval. Approved: August 4, 1969

PRESIDENTIAL DECREE No. 542 August 20, 1974

AMENDING PRESIDENTIAL DECREE NO. 264, CREATING THE PHILIPPINE AMANAH BANK

WHEREAS, Presidential Decree No. 264, dated August 2, 1973 was designed and intended principally torehabilitate, develop, expand and promote the socio-economic conditions of the economically depressed

provinces of Mindanao, particularly in the Muslim provinces of North Cotabato, Maguindanao, SultanKudarat, Lanao del Norte, Lanao del Sur, Sulu, Tawi-Tawi, Zamboanga del Norte, and Zamboanga del Sur,and to provide more opportunities and incentives to the Muslim citizens of the Philippines, in actively andsincerely participating and getting involved in community development and nation-building;

WHEREAS, in order to render more effective the foregoing intentions and objectives of this Decree, it isnecessary that the religious beliefs and practices of the Muslim citizens of the Philippines, be followed andrespected, unless otherwise it is contrary to law, good morals and public policy.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vestedin me by the Constitution, do hereby amend Presidential Decree No. 264, as follows:


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Section 1. Section 1 of Presidential Decree No. 264, creating the Philippine Amanah Bank, is herebyamended to read as follows:

"Sec. 1. Purposes, Name, Domicile and Basis. To provide credit commercial, development andsavings banking facilities at reasonable terms to the people of the primarily Muslim provinces ofMindanao, principally, the provinces of North Cotabato, Maguindanao, Sultan Kudarat, Lanao delSur, Lanao del Norte, Sulu, Basilan, Zamboanga del Norte, Zamboanga del Sur and Palawan for theestablishment, acquisition, development and expansion of agricultural, commercial and industrialenterprises, there is hereby created a body corporate to be known as the Philippine Amanah Bank,

which shall have its principal place of business at Zamboanga City and shall exist for fifty years.

The Philippine Amanah Bank shall be based on the Islamic Concept of Banking, following the no-interestand partnership principles."

Section 2. The third paragraph of Section 15 of the same decree is hereby amended to read as follows:

"All profits assigned as dividends to the shares of the government, and all remaining net profits of thebank after the payment of dividends to stockholders other than the government of the Philippines, itsagencies or instrumentalities, if there is any, shall be transmitted to the Muslim Development Fund of thePhilippine Amanah Bank."

Section 3. All laws, decrees, orders, rules and regulations or parts thereof inconsistent with this Decreeare hereby repealed or modified accordingly.

Section 4. This Decree shall take effect immediately.

DONE in the City of Manila, this 20th day of August, in the year of Our Lord, nineteen hundred andseventy-four.

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