Via ODiSy March 22, 2012 PHILIPPINE STOCK EXCHANGE ... - BDO

24. RELATED PARTY TRANSACTIONS- 115 -In the ordinary course of business, BDO Unibank Group has loans, deposits and othertransactions with its related parties and with certain directors, officers, stockholders andrelated interest (DOSRI) as described below.Transactions with and between subsidiaries have been eliminated in the consolidatedfinancial statements.(a) Loans to Related PartiesUnder existing policies of BDO Unibank Group, these loans are made onsubstantially the same terms as loans granted to other individuals and businesses ofcomparable risks. The General Banking Act and BSP regulations limit the amountof the loans granted by a bank to a single borrower to 25% of equity. The amountof individual loans to DOSRI, of which 70% must be secured, should not exceedthe amount of the unencumbered deposit and book value of the investment in theBDO Unibank Group. In the aggregate, loans to DOSRI generally should notexceed the total equity or 15% of the total loan portfolio of BDO Unibank Group,whichever is lower.The following additional information relates to the DOSRI loans:BDO Unibank GroupParent Bank2011 2010 2011 2010Total DOSRI loans P 42,814 P 35,453 P 42,814 P 35,413Unsecured DOSRI loans 2,601 2,146 2,601 2,126% of DOSRI loans to totalloan portfolio 6.4% 6.6% 6.5% 6.7%% of unsecured DOSRI loans tototal DOSRI loans 6.0% 6.1% 6.1% 6.0%% of past due DOSRI loans tototal DOSRI loans 0.0% 0.0% 0.0% 0.0%% of non-performing DOSRI loansto total DOSRI loans 0.0% 0.0% 0.0% 0.0%DOSRI loans bear interest rates of 0% (Standby Letters of Credits or LCs) to 9.1%in 2011 and 0% (Standby LCs) to 11.0% for both 2010 and 2009 for both BDOUnibank Group and Parent Bank financial statements.(b) Deposits from Related PartiesAs of December 31, 2011 and 2010, total deposits made by the related parties toBDO Unibank Group amounted to P415,744 and P194,625, respectively. Therelated interest expense from deposits amounted to P38, P10, and P6 in 2011, 2010and 2009, respectively.