ArtICLE 215.pptx REVISED PENAL CODE OF THE PHILIPPINES BOOK 2

ART 215

1. Art. 215. Prohibited transactions.

2. The penalty of prision correccional in its maximum period or a fine ranging from 200 to 1,000 pesos, or both, shall be imposed upon any appointive public officer who, during his incumbency, shall directly or indirectly become interested in any transaction of exchange or speculation within the territory subject to his jurisdiction.

3. Elements : 1. That the offender is an appointive public officer. 2. That he becomes interested, directly or indirectly, in any transaction of exchange or speculation. 3. That the transaction takes place within the territory subject to his jurisdiction. 4. That he becomes interested in the transaction during his incumbency . Appointive officer means an employee appointed to a position for a definite and fixed term of office by official and duly recorded action of the governing body of an employing unit.

4. Speculation Making profits by buying and selling assets at a higher price than they were bought for. Hedging against potential losses in other areas of their portfolio. Increasing market liquidity by buying and selling assets can make it easier for other traders to enter or exit positions.

5. The transaction must be one of exchange or speculation . It is sufficient under this article that the appointive officer has an interest in any transaction of exchange or speculation, such as, buying and selling stocks, commodities, land, etc., hoping to take advantage of an expected rise or fall in price. Purchasing of stocks or shares in a company is simply an investment and is not a violation of the article . An appointive public officer may, within the territory subject to his jurisdiction , engage in the purchase of stocks or shares in any company, because to do so does not mean taking part in a business for gain or profit , but simply to invest funds at a legal interest.

6. But buying regularly securities for resale is speculation . What he may not do is to buy regularly securities for the purpose of profiting by a resale thereof . In a word, the appointive public officer should not devote himself to commerce. (Albert) Examples of appointive public officer . Under Art. 14 of the Code of Commerce, the following (among others) may not engage in the commercial profession either in person or by proxy : 1. Justices, judges or fiscals. 2. Employees engaged in the collection and administration of public funds . Thus, a fiscal of Manila who engages in commerce in Manila is guilty under this article.

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