CHAPTER 5

1. Define the following: savings bank, private development banks, and stock savings and loan
association.

Savings Bank: is a financial institution organized for Republic act no. 3377 under section 29-38 of the
general banking for the purpose of accumulating the savings of depositors that are specialize for
investment in financial securities such as stocks, shares, and government bonds. In returns, the banks
pay interest to the savers.

Private development Bank: is a financial institutions organized under the provision of republic act no.
4093 to promote and expand the economy of the country pursuant nyo the socio-economic program of
the government to expand the industrial and agricultural growth, and to encourage the establishment of
more private development banks in order to meet the needs for capital and to meet the demands for
adequate investment credit or medium and long term loans for filipino entrepreneurs.

Stock savings and Association organized and operate in accordance with the provision of republic act no.
3779. It is a savings and home financing institutions that accumulate the savings of its stockholders and
using such accumulation together with its capital for loans and for investment in the securities of
productibe enterprise or in the securities of the government or any of its political subdivision,
instrumentalities, or corporations. This financial institution also provide loans for the purchase of private
housing, home ki improvements, and new construction for shareholders.

2. What are the services performed by thrift banks? What is the minimum paid-in capital of existing and
new thrift banks?

The Thrift banks perform, to grant loans whether secured or unsecured, accept savings and time
deposits, invest in readily marketable bonds and other debts securities, commercial papers and accounts
receivable, drafts, bills of exchange, acceptances or notes arising out of commercial transaction and
lastly to issue domestic letters or credits and their paid in capital at time of application must at least 50
million. It minimum paid-in capital of an existing thrift banks whithin metro Manila is about 10 millions
and outside Manila is about 5 millions and in a new thrift banks within metro Manila the paid-in capital
is about 20 millions and 10 millions outside metro Manila capitalization might in the form of common
stocks, and a combination of common stocks and prefered stock.

3. What are some of the requirements for thrift banks to be able engage in current account operations

In order the thrift banks may authorized to accept current accounts, their paid-in capital at the time of
application must at least 50 Million and must meet the following requirements:

• must not incurred any capital deficiency on any day during the six-month period immediately
preceding the filing of application for such authority.
• must not have incurred any net deficiency in legal reserves against deposit liabilities in any week
during the six month period immediately preceding the date of filing of such application. •might had
profitable operations during the last three years immediately preceding the filing of application.
• the personnel who will handle the demand deposit operation posses the necessary experience or
training.

• the bank facilities are adequate to service demand deposit

• they must have adopted appropriate and adequate procedures and system of internal control.
4. Explain the nature of loans granted by thrift banks. What are the limitations of such loans.

Thrift banks may grant loans secured by bonds, mortgages or real state and unsecured improvements
thereon and other forms of security including loans against pledge of jewelry, precious stones and
articles of similar nature. Granted by pawnshops, loans on junior mortgages on real state wherein the
loans shall be considered as adequately secured if the total amount of loan granted herein plus the
balance of the loan granted to the senior mortgage shall at any time, not exceed the loan value of the
real state security based on the appraisal of the junior mortgage. Thrift banks in general also know as
unsecured loans in accomodations against personal security, must exercise proper caution by
ascertaining that the borrowers, co-makers, indorsers, securities and or guarantors possess good credit
standing and are financially capable of fulfilling their commitments to the banks. Also the loans and
other credit accomodation granted to any person, company, corporation, or firm shall not exceed 15%
of the unimpaired capital and surplus of the bank.

5. Name the allied undertakings financial and non financial of a thrift banks.

Warehousing companies, Storage companies safe deposit box companies and companies engaged in the
management of what funds but not in the mutual funds themselves, management corporations engaged
or to be engaged in the activity similar to the management of mutual funds, companies engaged in
homebuilding and development, companies providing drying and milling facilities for agricultural crops
such as rich and corn and companies engaged in insurance brokerage ared declare as non financial allied
undertakings of a thrift banks.

6. What are the two credit facilities extended by the central bank to a thrift bank?

The two credit facilities obtained by a thrift bank under the following;

1. The loans granted to directors, officers, stockholders, and their related interest have not exceeded
the prescribe total on individual maximum and minimum of insecure loans and that such loans are in
current status.

2. The bank past due loans have not exceeded one and a half times the average overdue accounts in the
particular sector of the thrift banking industry.

7. Explain briefly the deposit substitute operation.

Under Section 95 the new BSP Charter, a deposit substitute refers to a form of obtaining funds from the
public, other than deposits, through the issuance, endorsement or acceptance of debt instruments for
the purpose of relending or purchase of other receivables and obligations.

8. What are the requirements to quality a thrift bank to perform quasi-banking functions?

To perform quasi-banking a thrift bank may have its minimum paid-in capital for atleast 50 Million at
least majority of the voting stocks are owned by citizens of the Philippines at least majority of the
member of the board of directors are citizen of the Philippines and the managerial staff possesses the
integrity, experience, and expertise, with provide reasonable assurance that the bank is being conducted
with financial prudence.
9. Discuss the other operations of a thrift bank.
Other operations of thrift bank also undertake the following;
•Purchase receivable and other obligations
•Engage in open market operations: that is, buying and selling government securities.
• invest in readily marketable bonds and other debts securities
• engage in trust operations or trust business
• sell government securities such as BS certificate of indebtedness. DBP Bonds, Premyo savings bonds
and biglaang bahay bonds, including those issued by other government agencies.
• Collect taxes, levies and other revenues of the government upon prior authority and lastly,
• participate in clearing operations if authorized to accept demand deposit
CHAPTER 6
1. Discuss briefly the functions of a rural bank.

A rural bank may offer or perform the following:

• Grant loans and make investments in accordance with existing rules and regulations. •
Accept savings and time deposit •Sell
domestic drafts • Act as
correspondent for other financial institutions • Receive in
custody funds, documents, and other valuable object and rent safety deposit boxes for the safeguarding
of such objects. • Act financial agent, buy
and sell by order of and for the account of its customers, shares, evidences of indebtedness and all types
of securities. • Make collections and payments for the
account of other and perform such services for its customers as are not incompatible with banking
business

2. Explain the organization of a rural bank

A rural bank organized in the form of a stock corporation with 15 corporators, if more than 15 are
interested the rest will includes as subscribers. All of them must be a Filipino citizen of a good moral
characters and integrity, have a capacity in their own to meet their commitments, with a good credit
standing and not convicting of any crime involving moral turpitude. Majority the in corporators and
subscriber must be resident of the place where the rural bank will operate aloperate and must own at
least majority or controlling voting shares shares of the rural bank.

3. Explain the lending operation of a rural bank. What are the types of loans granted by a rural bank?
What are their terms.

Rural bank granted loans to conduct, develop, or improve agricultural, commercial or industrial
operations. Also extended to meet the health, educational and subsistence needs. Moreover, also be
granted to provide the everyday credit needs of farmers who own or cultivate the land of merchants
who buy and sell goods or of the cooperatives of such farmers and merchants as well as other residents
within their service are. May also be granted for personal or household financing, home building, and
home development preferably for farmers and merchants.

Rural bank Issue loans for; agricultural loans

wherein granted for the purpose of farm expenses. It shall be granted for a period not exceeding 360
days which may be renewed for not more than two ties.

Commercial loans wherein granted for the purpose of conducting or carrying on, developing or
improvement of commercial operations. It shall be granted for maximum period of 180 days, and may
be renewed for a period not exceeding 90 days.

Industrial Loans wherein granted for the purpose of expense for labor with the manufacturer of goods
which are in demand and readily saleable, or have guide turnover, purchase of raw materials
manufacture. It shall be granted for a period of not more than 360 days, renewable for another period
not exceeding 180 days.
Loans to cooperative wherein be granted for agricultural for the purpose of meeting the needs of
members of the farmers, commercial loans for purchase of resale, industrial to meet the credit need of
the members of cooperatives.

Term loans wherein granted for the purchased of land, improvement or unimprove, to be devoted to
agricultural production. Improvement of agricultural, commercial, industry or residential real estate for
borrowers own use, acquisition of agricultural or industrial machinery tools and poultry rising fish
culture and coastal fishing and for the production and harvesting of agricultural crops which have
production cycles of more than one years. If medium-term loans it shall be granted of more than one
year but not exceeding five years and if long term loan the maturity period is more than five years.

4. State the nature of a supervised credit. What are the steps involved in supervise credit?

Supervised credit is a system of lending combines adequate and timely credit with farm and hoke
management guidance ubder a trained technician. Under this system the farmer borrower must agrees
in writing that he will apply proven farm practices to conserve the land, improve its fertility, and
increase its productivity and abide by the approved farm plan and budget jointly prepared by him and
duly accredited supervised credit technicians.

The steps involve in supervised credit are the following:

1. Analysis of the project to be financed to determined the resources of the farm project.necessary
changes must be made to make the farmer borrower more productive and efficient and the additional
facilities and or financing required ro improve the operations.

2. Preparation of a farm plan and budget shall include a modern farm schedule which sets down in
specific tearms day to day farming activities of the farmer borrower under modern cultural practice.

3. Periodic inspections and follow-up of the project by technicians of the rural bank and or of the
government technicians assigned to the bank to see to it that the farmer is operating strictly in
accordance eith the farm plan and budget and to provide the necessary technical assistance.

4. Evaluation the farm project at the end of the crop season or when such project has been
completed to identify any problem that the farmer borrower may have encountered during his
operations and to see to it that such problem is avoided in the next project.

5. Explain the special financing program. Give examples of special financing program.

Special financing is a segment of the auto lending industry for borrowers with a limited or tainted credit
history. It is risk to industry because the terms of the loans are set so that the expected returns to the
lender investors are great enough to cover risk of default by the borrower. Here in the philippines rural
bank is allowed to participates in special financing programs of the government for agriculture
productions. The funds for special financing program are placed under the administration of the bangko
sentral chanelled through rural banks in the form of special time deposits to provides then with seed
funds for initial loans releases to finance specific projects under the program and enable the banks to
generate fund through rediscounting with the bangko sentral. For example: The Survival and Recovery
Loan (SURE) for small farmers and fishers. A zero percent interest rate loan amounting to twenty five
thousand pesos to be given to iligible borrowers affected by enhanced community quarantine.
6. What are the types of deposits accepted by a rural bank? Explain one.

The demand deposit, savings deposit, time deposit, and now account are deposit that are accepted by a
rural bank. In a Time deposit, the rural bank issued certificate in the name of depositor wherein they
will earns interest on the basis of maturity period. When the maturity deposit matures the depositor
present the certificates duly endorse him to the bank which gives them the amount of the deposit
shown on the face of the certificate plus accrued interest, if it has not been paid in advance.

7. What are the requirements to qualify a rural bank to accept demand deposit?

In order to approve by Monetary Board of Bangko Sentral, a rural bank must apply for authority to
accept demand deposit and must meet the following requirements:

• its paid-in capital, including the government counterpart capital must be atleast P10 million.
• must not have incurred any capital deficiency on any day during the six-month period immediately
preceding the date of application for said authority.
• must not have incurred any net deficiency in reserves against deposit liabilities in any week during the
six months period immediately preceding the filing of said application.
• must have had profitable operations during the last three years immediately preceding the filing of
said application.

8. Discuss interest on deposits

Only the savings bank and the Time deposit earn interest. interest of saving deposit computed daily,
monthly or quarterly it shall be based on 360 days which consider the number of days comprising a
year. In the time deposit, the computation of interest shall be based on the number of days comprising
the year; when the term is one year or more, a year shall mean 365 days; and when the term is less than
one year, the interest shall be computed on the basis of 360 days a year. the interest of time deposits
may be paid during the maturity or upon the withdrawal or in advance but shall not exceed the interest
for one year and if the time deposit are not withdrawn or renewed on its due date it shall be treated as
a savings deposit and shall also earn interest during the maturity.

9. What is the composition of the reserve requirement by Bangko Sentral on rural banks?

A rural bank is required to put up reserves against its deposit liabilities on demand, time and savings
deposit. Its composition shall hold as is follows:

1. Deposit with the Central Bank. at least 25% of the required reserves shall be in the form of deposits
with the central bank
2. Government Securities and Cash in Vault. the remaining portion of the required reserves may be held
by the rural bank in the form of cash in the vault of the bank and government securitiesor evidence of
indebtedness of the republic of the Philippines.

10. What is Rediscounting? What is an eligible paper? How much is the maximum rediscounting loan for
a rural bank?

Rediscounting is a standing credit facility provided by the BSP to help banks meet temporary liquidity
needs by refinancing the loans they extend to their clients. Specifically, the rediscounting facility allows
a financial institution to borrow money from the BSP using promissory notes and other loan papers of its
borrowers as collateral. Through the facility, the BSP makes possible the timely delivery of credit to all
productive sectors of the economy. Moreover, rediscounting is one of the monetary tools of the BSP to
influence the volume of credit in the financial system.

11. What are the conditions in order for a rural bank to be able to obtain a loan from the development
bank of the Philippines?

Rural banks shall be organized in the form of stock corporations. Upon consultation with the rural banks
in the area, duly established cooperatives and corporations primarily organize to hold equities in rural
banks may organize a rural bank and/or subscribe to the shares of stock of any rural bank: Provided,
That a cooperative or corporation owning or controlling the whole or majority of the voting stock of the
rural bank shall be subject to special examination and to such rules and regulations as the Monetary
Board may prescribe.

12. What are some of the financial and non-financial allied undertakings which rural banks can engage in
equity investments?

13. What are some of the operations of a rural bank?

The main business of a rural bank to mobilize resources locally and to on-lend the same to the people in
the area. In other words, they operate in rural communities and specialize in the extension of credit to
present farmers, fishermen, rural entrepreneurs such as cottage industrialists and traders in rural areas.
Chapter 7
1. What is social assurance? How does it help workers?

A social insurance is a government program that provides security to save the worker or employees
from the hazard of life. Protect the individual and his family against the consequences of an unavoidable
interruption of serious diminution of income for maintaining the standard of living. It does not only give
a massive movement to save the worker or employees but also greatly contribute to economic
development.

2. State the difference between social insurance and social security.

A social insurance is basically similar to social security since they both involve a spread of risk and
plurality of members. However, social security is differ from insurance because the relation between a
member and the social security system is not governed by a contract by force of law. And social security
has not been intended to be the cure for all insurance needs particularly in a less developed country.
Nonetheless it can motivate and inspire insurance or security consciousness among the people.

3. What are objectives of GSIS? What are some of its function. Explain one.

The GSIS objective is to promote efficiency and welfare of government employees, to help the filipino
government employee when he cannot on longer help himself or his family, also to pay not any all
rightful insurance claims to its policy holders when these are due.

GSIS has three functions it is called as primary functions wherein the insurance is given in the form of
life insurance benefits, retirement benefits disability benefits, medicine benefits and survivors benefits.
the other functions of GSIS are s condary functions and supportive functions.

4. Who are entitled to retirement benefits in the government service?

In GSIS insurance, the retirement benefit is entitled to an old age members who has at least fifteen
years of service, at least sixty years of age and separated from service.

5. Explain briefly the growth and coverage of SSS.

In September 1, 1957 social security has only 211 personnel, assets of P6, 372 and 224,156 workers as
members, it initially granted only death, disability, sickness and old age benefit under its social security
program for the workers employees in the private sector and in over years, it's capacity for funding and
administrative experience grew and they had an additional benefits such hospitalisation under the
Medicare program, employees compensation benefits and maternity benefits.

SSS has two types of coverage. It is compulsory coverage wherein the members are employer (business),
employee, self employed, kasambahay, or OFW, meaning most of its members has a work. the other
types are the voluntary coverage wherein the members are non-working spouse or separated members
meaning of of its members has no work.

6. What are the requirements/ qualifications for sick benefit? Retirement benefits under SSS?

A member of SSS may qualify for sick benefit if he is unable to work due to sickness or injury, if he is
confined for at least four days. If he has paid three month period immediately before the semester of
sickness, if he has notified his employer of the SSS if unemployed and if he has used up all current
company sick leaves with pay.

A member of SSS may qualify to retirement benefit if he is sixty years old separated from service or or if
employed he will receiving less than P300 a month and has paid at least 120 monthly contribution
before the semester requirements or he is sixty five years old and has paid at least P120 monthly
contribution before the semester.

7. Who are qualified to apply for a housing loan?

SSS members will be qualified for applying a housing loan if they had at least 36 months contribution
and 24 continous contributions in the period prior to application, must not more than 60 years old at
the time of application, must not previously granted a repair and or improvement loan by the SSS or
NHMFC, also must not been granted final SSS benefit and also must be updated in the payment of their
other SSS loans If any.

8. If your salary from a private bank is P1,500 a month, how much will you pay SSS? What about your
employer?

If my salary is P1,500 a month I will pay SSS for P104.75 a month and then my employer will pay P68.75
so my total SSS monthly contribution is about P173.50

9. If you areself employed and a member of SSS, and your present gross income for one year is P120,
000, how much is your monthly contribution to SSS?
Chapter 7 Part II

1. Name the two non-bank government financial institutions established in 1977 and define their
objectives.

The two non-bank government financial institutions that establish in 1977 are the Philippine Export and
Foreign loan Guarante corporation and National Home Mortgage Finance Corporation. The Philippine
export and foreign loan guarantee Corporation (PEFLGC) objectives is (1) to approved foreign loans in a
whole or in part, granted to any domestic entity, enterprise or corporation, majority of the capital which
is owned by entities of Phil. (2) To guarantee Philippine banking and financial institutions against loss
that may be incurred in connection with; the grant of loans/ credit accomodation to export products or
services abroad and The Issuance of standby letters of guarantee as the case to secure the performance
of approved service contract abroad by any domestic entity, enterprise or corporation, majority of the
capital of that owned by citizen of the phil. On the otherhand, The National Home Mortgage Finance
Corporation is to (1) to develop and provide for a secondary market for home mortgages granted by
public and or private home financing institutions (2) to develop a system that will attract private
institutions funds into long-term housing mortgage and (3) to provide amortization support to
borrowers during the first five years of the term of their housing loans and the abot-kaya pabahay
fund(AKDF)

2. State the members of the board of directors of the Philippines export and foreign loan guarantee
corporation.

PEFLGC is exercise with 9 member of board of directors

1. Secretary of finance (Chairman of the Board)
2. President of the Corporation (Vice Chairman)
3. Secretary of Trade and Industry
4. Secretary of Environment and National Resources
5. Secretary of Agriculture
6. Director General of the National Economic and Development Authority
7. Chairman- President, Phil. Export Council

3. Name atleast six functions of PEFLGC?

(1)To facilitate and assist in the implementation of approved service contracts abroad entered into by
Philippine entities, enterprises, or corporations with foreign exchange earning potentials, by providing
counter-guarantees to Philippine banks and financial institutions issuing stand-by Letters of Credit or of
Letters of Guarantee for the performance of said service contracts; (2)To meet requests from domestic
entities, enterprises, and corporations to assist them in the coordination of their development and
expansion plans with a view to achieving better utilization of their resources; (3) To provide insurance
cover, credit and appropriate services to facilitate the export of Philippine goods or services by any
entity, enterprise or corporation organized or licensed to engage in business in the Philippines; (4) To
provide direct credits and loans to exporters of Philippine goods and services; (5) To provide technical
assistance in the preparation, financing, execution of development or expansion programs, including the
formulation of specific project proposals. And (6) To undertake such actions that are consistent with the
primary purposes of the corporation.
4. Identify the corporate and borrowing powers of the PEFLGC?

The Corporate Powers under section 4, is to hereby authorized to make contracts, to lease or own real
and personal property, and to sell or otherwise dispose of the same, to sue and be sued, and otherwise
to do and perform any and all things that may be necessary or proper to carry out the purpose of this
Decree, or as are essential to the proper conduct of such operations.and, in the Borrowing and other
Miscellaneous Powers under section 5, the Corporation shall have the power: (a) To borrow funds in
foreign countries or in the Philippines with the approval of the President of the Philippines and subject
to pertinent provisions of Republic Act No. 265, as amended, and Central Bank rules and regulations; (b)
To buy and sell securities the Corporation has issued or guaranteed; (c) To underwrite or participate in
the under-writing of, securities by any domestic entity or enterprise for purposes consistent with the
purpose of the Corporation; (d) To invest funds not needed in its operations; (e) To exercise such other
powers and establish such rules and regulations as may be necessary and appropriate in furtherance of
its purpose and functions.

5. What guiding principles must be observed in the operations of the PEFLGC?

6.What is the capital requirements of PEFLGC?

7. Discuss briefly other laws applicable to PEFLGC.

8. State the purpose of the National Home Mortgage Finance Corporation

9. Give the powers and functions of the NHMFC

10. What are the other complementary moves to attain the objectives of the NHMFC

11. Identify the members of the board of directors of the NHMFC.

Chapter 8

1. Define briefly the following terms:

a.pawnshop

b.pawner

c.pawn

d.bulky pawns

e.pawnbroker

f.pawn ticket

g.service charge

A pawn shop (also called a pawnshop or pawnbroker) is a shop or business who loans money to people
who bring in valuable items which they leave with the pawnbroker.

A pawner is a person who deposits something with another (usually a pawnbroker) as a pledge or
security for a loan.

Pawn definition, to deposit as security, as for money borrowed, especially with a pawnbroker.

A pawnbroker is an individual or business (pawnshop or pawn shop) that offers secured loans to people,
with items of personal property used as collateral.

Pawn ticket is a ticket issued by a pawnbroker in exchange for an article pawned, bearing particulars
of the loan.
A service charge is a fee collected to pay for services related to the primary product or service being
purchased.

2. What law governs the business of pawnshop?

P.D. No. 114, a.k.a. the “Pawnshop Regulation Act”, governs pawnshop establishments and provides
definite and uniform standards for their operation. However, the law is no longer responsive, given the
growing complexities of the pawnshop business.

3. State the objectives of the law governing the business of pawnshop.

It is hereby declared the policy of the State to regulate the establishment of pawnshops and to place
their operation on a sound and stable basis to derive the optimum advantages from them as an
additional source of credit; to prevent and mitigate, as far as practicable, practices prejudicial to public
interest; and to lay down the minimum requirements and standards under which they may be
established and do business.
4. What agency of the government has supervision over the operations of pawnshops?

The Bangko Sentral ng Pilipinas’ (BSP), known as the Central Bank in 1973.was given the authority and
responsibility to regulate pawnshops. Presidential Decree 114 (29 January 1973) and the Central Bank
Circular No. 374 (13 July 1973) set out specific regulations covering the operations of pawnshops.

5. State the essential requirements for one to engage in the business of pawnshop.

Any person or entity desiring to engage in the pawnshop business shall (a) register with the Bureau of
Commerce in the case of single proprietorship or the Securities and Exchange Commission in the case of
a corporation or any other association and (b) secure a license from the appropriate city or municipality
having territorial jurisdiction over the place of establishment and operation.

6. Discuss briefly the requirements of registration and licensing of pawnshop business.

Any person or entity desiring to engage in the pawnshop business shall (a) register with the Bureau of
Commerce in the case of single proprietorship or the Securities and Exchange Commission in the case of
a corporation or any other association and (b) secure a license from the appropriate city or municipality
having territorial jurisdiction over the place of establishment and operation.

7. Name the documents required to be filed with the bureau of commerce, the Securities and Exchange
Commission and/or the bangko sentral.

8. How is a public auction is conducted in connection with an unredeemed pawn.

Unredeemed pawn items shall be sold/disposed of only through public auction. ninety (90)-day grace
period through the mode of notification agreed upon by the pawner and the pawnshop as indicated at
the back of the pawn ticket at the time the loan was granted. shall be conducted.

9. State the minimum paid-in capital of a pawnshop.

The minimum paid-in capital of any pawnshop which may be established after the effectivity of this
Decree shall be one hundred thousand pesos (P100,000.00): Provided, however, That pawnshops
established and in operation prior thereto shall comply with the minimum capitalization required under
the provisions of this P.D.

10. State the penalty for violating the law of pawnshop.

Section 18. Penalties. A fine of not less than one hundred pesos (P100.00) and not more than one
thousand pesos (P1,000.00) or imprisonment for not less than thirty days and not more than one year,
or both, at the discretion of the court, shall be imposed for violations of the provisions of this Decree
and its implementing rules and regulations: Provided, That if the violation is committed by a
corporation, partnership or an association, the penalty provided for in this Decree shall be imposed
upon the directors, officers, employees or persons therein responsible for the offense, without prejudice
to civil liabilities arising from the criminal offense.
11. What are the administrative sanctions that may be imposed by the monetary board of the bangko
sentral against violators of presidential decree no.114 and CB circular no. 374.

WHEREAS, pawnshops provide an additional source of credit especially for small borrowers left
unserved by the banking and other financial institutions in the country;

WHEREAS, there is no specific law in the Philippines that governs pawnshop establishments, particularly
providing definite and uniform standards for their operation;

WHEREAS, the recommendations contained in a report on the financial system which have been
accepted, with modifications, by monetary authorities, strongly advocate the enactment of a law
regulating pawnshops