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Electronic Clearing of Checks to Start in January 2017

Media Releases
09.13.2016 [ ]

The Monetary Board (MB) has approved the adoption of the electronic clearing of checks which shall be implemented beginning 20 January 2017.

As BSP-designated exclusive provider of electronic check clearing services, the Philippine Clearing House Corporation (PCHC) shall implement the clearing of checks via electronic presentment through its Check Image Clearing System (CICS).

Using the PCHC’s CICS, only the digital images of checks and their electronic payment information are needed to be transmitted to the paying bank. The previous clearing system requires the physical delivery of checks.

The new check clearing process is expected to speed up the crediting of funds to depositors’ account from three to five banking days to only one banking day.

Aside from promoting financial consumer welfare, this reform initiative enhances the efficiency of the domestic payment system and promotes the faster movement of goods and services in the country.

The BSP recognizes the importance of check clearing to the domestic payment system. Thus, under a memorandum of agreement between BSP and PCHC, the central bank will take a more active role in supervising the country’s check clearing system by reviewing PCHC regulations as well as examining PCHC arrangements, processes and systems for check clearing.

To ensure the smooth implementation of this new process, the BSP enjoins banks to actively participate in the preparations for electronic check clearing.

The BSP is pursuing reforms to enhance the efficiency of the payment system as this is critical to the promotion of the country’s Financial Stability.

New expropriation law

By: Raul J. Palabrica
@inquirerdotnet Philippine Daily Inquirer 03:27 AM March 21st, 2016

EXPROPRIATING private property for public use has been a pain in the neck for the government, both national and local, due to ambiguities in the law and delays in the judicial process.

To address these problems, President Aquino recently signed into law Republic Act No. 10752, or “The Right-of-Way Act,” which aimed to facilitate the acquisition of right-of-way (ROW) site or location for national government infrastructure projects.

The law applies to all national government infrastructure projects and its public service facilities, engineering works and service contracts, including those undertaken by government-owned and -controlled corporations.

The government can acquire private real property for such projects through donation, negotiated sale, expropriation and other modes of acquisition authorized by existing laws.

Since negotiated sales and expropriations are often contentious and result in delays, the law states in detail the procedures to be followed by the government agency concerned and the time frames that the courts should observe in resolving expropriation issues.

The idea is, time is of the essence in the acquisition of ROW sites so the process should be completed as fast as possible without sacrificing the right to just compensation of property owners.

Negotiated sale

Negotiated sale is the preferred mode in ROW acquisitions (unless the owner agrees to donate the site) as it avoids going through the tedious process of expropriation.

In negotiating the purchase of a property, the government agency is required to offer compensation to the owner in an amount equivalent to the sum of (a) current market value of the land, (b) replacement cost of structures and improvements on it, and (c) current value of planted crops and trees.

For this purpose, the agency may engage the services of a government financial institution with adequate experience in property appraisal, or an independent property appraiser accredited by the Bangko Sentral ng Pilipinas (BSP), or a professional association of appraisers recognized by the BSP.

The property appraisal will enable the agency to make a reasonable offer to the owner and the latter will have no reason to complain that he is being short-changed.

The owner has 30 days from receipt of the offer to buy his property whether or not to accept it.

In an act of generosity, the law allows the payment of the replacement cost of structures and improvements even if their owners “do not have legally recognized rights to the land” on condition they are Filipino citizens, they do not own any real property or other housing facility in any urban or rural area, and are not professional squatters or members of a squatting syndicate, as defined in the Urban Development and Housing Act of 1992.

Payment terms

If the owner agrees to the sale, 50 percent of the agreed price of the land and 70 percent of the price of the structures, improvements, crops and trees (in both cases exclusive of unpaid real estate taxes) shall be paid by the agency upon the signing of the deed of sale.

The balance of 50 percent for the land and 30 percent for the structures and improvements shall be paid when the title to the land has been transferred to the Republic of the Philippines and the land is completely cleared of structures, improvements, crops and trees.

To sweeten the pot in negotiated sales, the capital gains tax payable from the sale of the land and its improvements (which under existing laws is the seller’s obligation), shall be paid by the agency for the account of the seller.

However, in case the owner refuses or fails to accept the offer of negotiated sale within the 30-day period, the agency shall institute expropriation proceedings.

Unlike before when expropriation cases can be filed only by the Solicitor General or Government Corporate Counsel, this time the action can be instituted by, in addition to these offices, any government or private legal counsel that they may deputize for that purpose.


Upon the filing of the expropriation complaint and the owner is notified of that action, the agency shall immediately deposit with the court in favor of the owner the amount equivalent to the sum of:

100 percent of the value of the land based on the current relevant zonal valuation of the Bureau of Internal Revenue issued not more than three years prior to the filing of the complaint

Replacement cost at current market value of the improvements and structures as determined by the agency, a government financial institution with experience in property appraisal, and an independent property appraisal accredited by the BSP.

Current market value of crops and trees located in the land as determined by a government financial institution or an independent property appraiser.

Once payment is made, the court is required to immediately issue an order to the agency to take possession of the land and start the implementation of the project.

If the writ is not issued within seven working days after payment has been deposited in court, the agency’s lawyer can file a motion for the issuance of the writ, and the court is obliged to issue it ex parte, or even without a hearing.

Anticipating that the owner may not accept the deposited payment, the law obliges the court to determine the just compensation to be paid to the owner within 60 days from the date of the filing of the expropriation case.

The difference between the deposited payment and just compensation adjudged by the court has to be paid by the agency as soon as the court’s decision becomes final.

Hopefully, the new terms of payment and judicial procedures prescribed by the law will result in the faster implementation of the government’s infrastructure projects.

How to get started with renting out a property

( | Updated September 8, 2016 - 12:54pm

  Renting out a property is a great income opportunity. clncy Project/CC BY 2.0

MANILA, Philippines – Renting out a house or a condo makes sense because it is a great way to earn good passive income. Who wouldn’t want to earn money without practically doing that much?

It’s not also that difficult. For one, investing in a property has become easy on the pocket with competitive prices and attractive payment schemes that real estate developers are offering in the market these days.

It’s also convenient to advertise a rental property. You can just simply go online and get in touch with a property listing website where people can easily find your property.

But there are things you need to consider as you get started with this business. Here are a few:
1. Are you ready to be a landlord?

While earning passively through a rental property often looks easy, being a landlord is not as simple. You will have responsibilities and need to carve out some time from your routine to fulfill your obligations.

As a landlord, your responsibilities include maintaining your property, building rapport with your tenants, arranging the paperwork and collecting payments. But if you don’t have enough time to take care of these things but still want to make money from a rental property, consider having someone—a family member, relative, friend or a professional property manager—take care of the business for you.

2. Does your property look good?

The look and feel of your house, apartment or condo can make or break the deal. So, to make sure your property will attract the right tenants, make some preparations (and be ready to spend some money for this purpose).

Clean up, de-clutter, decorate or do some repairs before advertising your rental space. Are there leaks? Are the doors and locks working properly? Are there any cracks on the walls and ceilings? If the property is old, you might want to consider renovating it to make it an attractive livable space again.

And if you’re looking at buying a brand new space to let, consider location and value for money. For example, you can already make an investment for as low as P30,000 down payment with Deca Homes without compromising quality and comfort.

Just remember to factor into the rental fee the monthly payment and all your expenses on prepping your rental space, along with the upkeep and the cost of possible missed payments.

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