MORNBFI Vol. 1 - Planters Development Bank

§§ 4304Q.12 - 4305Q.310.12.31b. release, submission or exchange ofcustomer information with other financialinstitutions, credit information bureaus,lenders, their subsidiaries and affiliates;c. upon orders of court of competentjurisdiction or any government office oragency authorized by law, or under suchconditions as may be prescribed by theMonetary Board;d. disclosure to collection agencies,counsels and other agents of the QB toenforce its rights against the borrower;e. disclosure to third party serviceproviders solely for the purpose of assistingor rendering services to the QB in theadministration of its lending business; andf. disclosure to third parties such asinsurance companies, solely for the purposeof insuring the QB from borrower defaultor other credit loss, and the borrower fromfraud or unauthorized charges.(Circular No. 702 dated 15 December 2010)§§ 4304Q.13 - 4304Q.14 (Reserved)§ 4304Q.15 Sanctions. Violations of theprovisions of Subsecs. 4304Q.10 to 4304Q.12shall be subject to any or all of the followingsanctions depending upon their severity:a. First offense. Reprimand for thedirectors/officers responsible for the violation;b. Second offense. Disqualification ofthe bank concerned from the credit facilitiesof the BSP except as may be allowed underSection 84 of R. A. No. 7653;c. Subsequent offense/s:i. Prohibition on the QB concernedfrom the extension of additional creditaccommodation against personal security;andii. Penalties and sanctions providedunder Sections 36 and 37 of R. A. No. 7653.(Circular No. 702 dated 15 December 2010)Sec. 4305Q (2008 - 4307Q) Interest andOther Charges. The following rules shallgovern the rates of interest on loans by QBs.§ 4305Q.1 (2008 - 4307Q.6) Rate ofinterest in the absence of stipulation. Therate of interest for the loan or forbearanceof any money, goods or credit and the rateallowed in judgments, in the absence ofexpress contract as to such rate of interest,shall be twelve percent (12%) per annum.§ 4305Q.2 (2008 - 4307Q.5) Escalationclause; when allowable. Parties to anagreement pertaining to a loan orforbearance of money, goods or credits maystipulate that the rate of interest agreed uponmay be increased in the event that theapplicable maximum rate of interest isincreased by law or by the Monetary Board:Provided, That such stipulation shall bevalid only if there is also a stipulation in theagreement that the rate of interest agreedupon shall be reduced in the event that theapplicable maximum rate of interest isreduced by law or by the Monetary Board:Provided, further, That the adjustment in therate of interest agreed upon shall take effecton or after the effectivity of the increase ordecrease in the maximum rate of interest.§ 4305Q.3 (2008 - 4307Q.2) Floatingrates of interest. The rate of interest on afloating rate loan during each interest periodshall be stated based on the ManilaReference Rate (MRR), Treasury Bill Rate(TBR) or other market-based reference rates,plus a margin as may be agreed upon bythe parties.The MRRs for various interest periodsshall be determined and announced by theBSP every week and shall be based on theweighted average of the interest rates paidduring the immediately preceding week bythe ten (10) commercial banks with thehighest combined levels of outstandingdeposit substitutes and time deposits, inpromissory notes issued and time deposits(Next page is Part III - Page 9)Q RegulationsPart III - Page 8bManual of Regulations for Non-Bank Financial Institutions