MORNBFI Vol. 1 - Planters Development Bank

§§ 4306Q.1 - 4306Q.508.12.31listed above (e.g. daily, weekly orsemi-monthly), the entire outstandingbalance of the loan/receivable shall beconsidered as past due when the totalamount of arrearages reaches ten percent(10%) of the total loan/receivable balance;For this purpose, the term installmentsshall refer to principal and/or interestamortizations that are due on several dates asindicated/specified in the loan documents.f. Credit card receivables - if theamount due is not paid within ten (10) daysfrom the deadline indicated in the billingstatement; andg. (Deleted by Circular No. 202dated 27 May 1999)For the purpose of determiningdelinquency in the payment of obligationsas defined in Subsec. 4143Q.1(e), any dueand unpaid loan installment or portionthereof, from the time the obligor defaults,shall be considered as past due.§ 4306Q.2 (2008 - 4308Q.4) Demandloans. QBs shall, in case of non-payment of ademand loan, make a written demand withinthree (3) months following the grant of suchloan. The demand shall indicate a period ofpayment which shall not be later than three(3) months from the date of said demand.§ 4306Q.3 (2008 - 4308Q.2) Renewal/extension. No loan shall be renewed norits maturity date extended unless thecorresponding accrued interest receivableshall have been paid.§ 4306Q.4 (2008 - 4308Q.3) Restructuredloans. A restructured loan shall beimmediately classified past due in case ofdefault of any principal or interest payment.§ 4306Q.5 (2008 - 4308Q.5) Write-offof loans as bad debtsa. QBs, upon approval by their boardof directors, may write-off loans, other creditaccommodations, advances and other assetsagainst allowance for probable losses(valuation reserves) or current operations assoon as they are satisfied that such loans,other credit accommodations, advances andother assets are worthless as follows:(1) In the case of secured loans, QBsmay write-off loans, other creditaccommodations and other assets in anamount corresponding to the bookedvaluation reserves: Provided, That thebalance of the secured loans, other creditaccommodations, advances and other assetsshall remain in the books.(2) In the cases of unsecured loans,other credit accommodations, advances andother assets, QBs shall write-off said loans,other credit accommodations, advances andother assets in full amount outstanding.However, write-off of loans, other creditaccommodations, advances and other assetsconsidered transactions with DOSRI shallbe with prior approval of the MonetaryBoard.b. Definitions. For purposes of thisSection, the following terms are herebydefined as follows:(1) Loans. The term loans shall refer toall the accounts under the loan portfolio ofa QB as enumerated in the Manual ofAccounts for Quasi-Banks.(2) Other credit accommodations. Theterm other credit accommodations shall referto exposures of QBs other than loans suchas sales contract receivables, accountsreceivables, accrued interest receivables,lease receivables, and rental receivables.(3) Advances. The term advances shallrefer to any advance by means of anincidental or temporary overdraft, cash“vale”, any advance by means of DAUDand any advances of unearned salary orunearned compensation.(4) Other assets. The term other assetsshall refer to investments, placements,ROPAs and all other asset accounts that willnot fall under loans and other creditaccommodations.Manual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart III - Page 11