SEC Admin Case No. 03-12-145 IN THE MATTER OF SINAG-ARAW CREDIT CORPORATION, ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT (EIPD)

I Securities and Exchange Commission Republic of the Philippines COMMISSION EN BANC Department of Finance

CORPORATION In The Matter of SINAG-ARAW CREDIT

SEC Admin Case No. 03-12-145

PROTECTION DEPARTMENT, ENFORCEMENT AND INVESTOR

Petitioner.

DECISION

("EIPD"), of the Commission against Sinag-Araw Credit Corporation Incorporation ("Petition") filed by the Enforcement and Protection Department (EPD), now Enforcement and Investor Protection Department ("Sinag-Araw") on 05 March 2012. For consideration is the instant Petition for Revocation of Certificate of

THE PARTIES

all market participants, issuers and individuals, and take appropriate enforcement action against them for infractions of the laws, rules and and Exchange Commission ("Commission") tasked to ensure compliance by regulations implemented by the Commission. The same is vested with the Petitioner EIPD is one of the operating departments of the Securities

involving, among others, the selling, offering or transacting of unregistered securities by entities without a secondary license, as well as to initiate ("CRMD"). Finally, the EIPD is tasked to investigate, motu proprio or upon a verified complaint or referral, violations of laws, rules and regulations implemented by the Commission, as well as to file/apply for the issuance of a same is warranted by the attendant circumstances. petitions for revocation of corporate registration except those under the original authority of the Company Registration and Monitoring Department Cease and Desist Orders ("CDO") against persons or entities, whenever the primary authority to conduct investigations and administrative actions

Commission on 23 February 1993 with Company Registration No. Respondent Sinag-Araw is a corporation duly registered with the

AS93001463 and principal office address at No. 049 Purok 1, San Sebastian. Lipa City, Batangas. It is engaged in the business of lending.

FACTS

Lending Company Regulation Act." Respondent Sinag-Araw was one of the endorsing the cases of various companies allegedly engaged in lending Commission, in violation of Republic Act No. 9474 otherwise known as "The companies listed in the Memorandum of the CGFD. Department (CFD), now Corporate Governance and Finance Department business activities without the required Certificate of Authority from the ("CGFD"), dated 24 November 2010 (Memorandum) addressed to the EIPD The case stemmed from the Memorandum of the Corporation Finance

December 2011, the dispositive portion of which reads as follows: After a thorough investigation, the EIPD issued an Order on 12

and is hereby ordered to pay a FINE of P10,000.00 plus P50,000.00 penalty Section 4 of R.A. 9474 or the Lending Company Regulation Act of 2007 Within fifteen (1 5) days from receipt hereof. from the Commission, SINAG-ARAW CREDIT CORPORATION violated "WHEREFORE, for failure to secure a Certificate of Authority

Lending Company Regulation Act of 2007. REPRIMANDED for its failure to comply within the required capital build- up in the amount of P1Million, in violation of Section 5 of R.A. 9474 or the SINAG-ARAW CREDIT CORPORATION Is also

and possible criminal charges against the officers and directors of the corporation for non-compliance with Sections 4 and 5 of R.A. No. 9474. revocation proceedings against the corporation and impose other penalties secure a Certificate of Authority within thirty (30) days from receipt hereof. Otherwise, we shall be constrained to proceed with the institution of SINAG-ARAW CREDIT CORPORATION is further ordered to

SO ORDERED."

certificate stating that per their records, no Certificate of Authority to operate a Lending Company was issued by the Commission to respondent Sinag- Araw nor is there any pending application for the said certificate. On 14 February 2012, upon the request of EIPD, the CRMD issued a

Hence, on 12 March 2012, the EIPD filed the instant Petition.

Secretary issued summons ordering Sinag-Araw to enter its appearance and file its Answer to the Petition. The summons was duly served to the Corporation and its officers. On 14 March 2012, the Commission En Banc through the Commission

filed its Answer to this date. Our record shows that Sinag-Araw has not entered its appearance nor

ISSUE

The issue is whether or not the Petition should be granted.

DISCUSSION

The Commission finds the instant case to be moot and academic.

justiciable controversy that needs to be resolved. The resolution of this Petition would not serve any purpose, nor would it have practical value or use to Petitioner. Therefore, dismissal of the instant petition is proper. rendered the Petition moot and academic because there is no longer any 23 May 2017. This is considered a supervening event that effectively Order of Revocation of Certificate of Incorporation issued by the CRMD on Sinag-Araw's Certificate of Registration was revoked pursuant to the

DISMISSED for being moot and academic. WHEREFORE, premises considered, the instant Petition is hereby

SO ORDERED.

Pasay City, Philippines; 29 October 2019

EMT MM AQUINO

Ch erson

*EPHYRO LUIS B. AMATONG Commissioner JAVEY PAUL D. FRANCISCO Commissioner

*KELVIN LESTER K. LEE Commissioner KARLO S. Comnlissioner BELLO

*On Official Business