Entruster may not be a bank.a.
Example: Sale on consignment of goods. Seller entrusts to a buyer. Buyer sells goods undertaking toreturn the goods if not sold within the limited period.3.
Made into law to protect banking system. Comm’l banks used to be unable to collect on their transactions.
Before the law, there were 2 views regarding liability under transactions in TRs. 1. Crim (conversion) 2. Civil(payment). Trustees who only are liable for civil liability were able to abscond with the money of the bank. Bankswith low paid-up capital were prejudiced.4.
Trustee obliged to insure goods against all risks. Even fortuitous events5.
Similar to a P/N when there is an undertaking to remit the amount borrowed.6.
There may be other stipulations, but as long as the required undertakings are stated, it is a TR transaction7.
TR transactions may involve instruments of credit(e.g., negotiable instruments). But goods are more common.8.
term for bank accommodations--- end of trust receipts
Foreign Investments Law
To entice foreign investments2.
For foreign currency reservesHistory:1.
Uniform Currency Act
obligations cannot be payable in foreign currency or in relation to foreign currency2.
Central Bank have shortage of foreign currency. Foreign currency possession not illegal.3.
Dollars were deposited with safety deposit boxes. (robbery story)4.
Binondo Central Bank
possessed more dollars!
Hence, dollar deposits were legalized.6.
UCA repealed totally.7.
Phil #2 to Japan.
Any foreign national may own 100% of any export enterprise
no need to be the manufacturer; may be a meretrader
Foreigners may own 100% of a domestic market enterprise (not for export but for Phil market) for
as long asthese activities are not covered by NEGATIVE LIST A and B.
Negative List A
activities reserved by the Consti or special law for FILIPINOS (i.e. publicservices, advertising, etc.)ii.
Negative List B
Any activity relating to ammunition and repair of armamentsa.
Except with prior approval of the Sec of DND)2.
Foreigner investing at least $200K not in areas where there are health risks (i.e.,bars,beerhouses, massage parlors, sauna baths, dancing poles)-hotels and restaurants can be foreign-owneda. Except: If less than 200K$1. The activity must be new (determined by DOST)2. There must be at least 50 employees