MORNBFI Vol. 1 - Planters Development Bank

§§ 4304Q.1 - 4304Q.1010.12.31extended.For purposes of this Subsection, thefollowing definitions shall apply:1. Micro and small enterprises shall bedefined as any business activity or enterpriseengaged in industry, agribusiness and/orservices whether single proprietorship,cooperative, partnership or corporationwhose total assets, inclusive of those arisingfrom loans but exclusive of the land onwhich the particular business entity’s office,plant and equipment are situated, must havea value of up to P3.0 million and P15.0million respectively, or as may be definedby the SMED Council or other competentgovernment agency.2. Consumer loans is defined to includehousing loans, loans for purchase of car,household appliance(s), furniture and fixtures,loans for payment of educational and hospitalbills, salary loans and loans for personalconsumption, including credit card loans.(As amended by Circular Nos. 694 dated 14 October 2010,622 dated 16 September 2008, 607 dated 30 April 2008 and549 dated 09 October 2006)§ 4304Q.2 (2008 - 4312Q.2) Purposeof loans and other credit accommodationsBefore granting a loan or other creditaccommodation, QBs shall ascertain thepurpose of the loan or other creditaccommodation which shall be clearlystated in the application and in the contractbetween the QB and borrower. Theproceeds of a loan or other creditaccommodation shall be utilized only forthe purpose(s) stated in the application andcontract; otherwise, the QB may terminatethe loan or other credit accommodation anddemand immediate repayment of theobligation. Notwithstanding the precedingsentence, the proceeds of a loan or othercredit accommodation may be utilized bythe borrower for a purpose(s) other than thatoriginally stated in the application andcontract: Provided, That such otherpurpose(s) is/are among those for which thelending QB may grant loans and other creditaccommodations under existing laws andregulations: Provided, further, That suchutilization shall be with prior writtenapproval of duly authorized officer(s)/committee/board of directors of the lendingQB and such written approval shall formpart of the contract between the QB andthe borrower.(Circular No. 622 dated 16 September 2008)§ 4304Q.3 (2008 - 4312Q.3) Prohibiteduse of loan proceeds. QBs are prohibitedfrom requiring their borrowers to acquireshares of stock of the lending QB out of theloan or other credit accommodationproceeds from the same QB.(Circular No. 622 dated 16 September 2008)§ 4304Q.4 (2008 - 4312Q.4)Signatories. QBs shall require that loans andother credit accommodations be madeunder the signature of the principalborrower and, in the case of unsecured loansand other credit accommodations to anindividual borrower, at least one (1) comaker,except that a co-maker is not requiredwhen the principal borrower has thefinancial capacity and a good track recordof paying his obligations.(As amended by Circular No. 622 dated 16 September 2008)§§ 4304Q.5 - 4304Q.9 (Reserved)§ 4304Q.10 Minimum requireddisclosure. QBs shall provide a table of theapplicable fees, penalties and interest rateson loan transactions, including the periodcovered by and the manner of and reasonfor the imposition of such penalties, feesand interests; fees and applicable conversionreference rates for third currencytransactions, in plain sight and language,Q RegulationsPart III - Page 8Manual of Regulations for Non-Bank Financial Institutions