Vivas and his principals acquired the controlling interest in Rural Bank Faire, a bank whose corporate life

has already expired. BSP authorized extending the banks’ corporate life and was later renamed to
EuroCredit Community Bank (ECBI). Through a series of examinations conducted by the BSP, the findings
bore that ECBI was illiquid, insolvent, and was performing transactions which are considered unsafe and
unsound banking practices. Consequently ECBI was placed under receivership pursuant to Sec 30 of the
New Central Bank Act. Petitioner contends that the implementation of the questioned resolution was
tainted with arbitrariness and bad faith, stressing that ECBI was placed under receivership without due
and prior hearing in violation of his and the bank’s right to due process.

Vivas assails the constitutionality of Section 30 of R.A. No. 7653 claiming that said provision vested upon
the BSP the unbridled power to close and place under receivership a hapless rural bank instead of aiding
its financial needs. He is of the view that such power goes way beyond its constitutional limitation and
has transformed the BSP to a sovereign in its own "kingdom of banks."

Whether there is undue delegation of legislative power to the BSP under New Central Bank Act and thus
unconstitutional

There are two accepted tests to determine whether or not there is a valid delegation of legislative
power, viz, the completeness test and the sufficient standard test. Under the first test, the law must be
complete in all its terms and conditions when it leaves the legislature such that when it reaches the
delegate the only thing he will have to do is enforce it. Under the sufficient standard test, there must be
adequate guidelines or stations in the law to map out the boundaries of the delegate's authority and
prevent the delegation from running riot. Both tests are intended to prevent a total transference of
legislative authority to the delegate, who is not allowed to step into the shoes of the legislature and
exercise a power essentially legislative.

In this case, under the two tests, there was no undue delegation of legislative authority in the issuance
of R.A. No. 7653. To address the growing concerns in the banking industry, the legislature has
sufficiently empowered the MB to effectively monitor and supervise banks and financial institutions and,
if circumstances warrant, to forbid them to do business, to take over their management or to place
them under receivership. The legislature has clearly spelled out the reasonable parameters of the power
entrusted to the MB and assigned to it only the manner of enforcing said power. In other words, the MB
was given a wide discretion and latitude only as to how the law should be implemented in order to
attain its objective of protecting the interest of the public, the banking industry and the economy.