MORNBFI Vol. 1 - Planters Development Bank

§§ 4306Q.5 - 4307Q.108.12.31(5) Bad debts. The term bad debts shallrefer to the definition under Subsec.4136Q.1.c. Reporting requirements. Notice ofwrite-off of loans, other creditaccommodations, advances and otherassets shall be submitted in the prescribedform to the appropriate department of theSES at least twenty five (25) banking daysprior to the intended date of write-off.The income tax expense deferredcorresponding to the amount of loan, othercredit accommodation, advances and otherasset written-off considered deductible forincome tax purposes shall be recognizedand reversed in QB’s books.§ 4306Q.6 (Reserved)§ 4306Q.7 (2008 - 4308Q.6) Updatingof information provided to creditinformation bureaus. QBs which haveprovided adverse information, such as thepast due or litigation status of loan accounts,to credit information bureaus, or anyorganization performing similar functions,shall submit monthly reports to these bureausor organizations on the full payment orsettlement of the previously reportedaccounts within five (5) business days fromthe end of the month when such full paymentwas received. For this purpose, it shall bethe responsibility of the reporting QBs toensure that their disclosure of anyinformation about their borrowers/clientsis with the consent of borrowers/clientsconcerned.(Circular No. 589 dated 18 December 2007)Sec. 4307Q (2008 - 4309Q) “Truth inLending Act” Disclosure RequirementQBs are required to strictly adhere to theprovisions of R.A. No. 3765, otherwiseknown as the “Truth in Lending Act”, andshall make the true and effective cost ofborrowing an integral part of every loancontract.The following regulations shall apply toall QBs engaged in the following types ofcredit transactions:a. Any loan, mortgage, deed of trust,advance and discount;b. Any conditional sales contract, anycontract to sell, or sale or contract of sale ofproperty or services, either for present orfuture delivery, under which part or all ofthe price is payable subsequent to themaking of such sale or contract;c. Any rental-purchase contract;d. Any contract or arrangement for thehire, bailment, or leasing of property;e. Any option, demand, lien, pledge,or other claim against, or for delivery ofproperty or money;f. Any purchase, or other acquisitionof, or any credit upon the security of, anyobligation or claim arising out of any of theforegoing; andg. Any transaction or series oftransactions having a similar purpose or effect.The following categories of credittransactions are outside the scope of theseregulations:(1) Credit transactions which do notinvolve the payment of any finance chargeby the debtor; and(2) Credit transactions in which thedebtor is the one specifying a definite andfixed set of credit terms such as bank deposits,insurance contracts, sale of bonds, etc.§ 4307Q.1 (2008 - 4309Q.1) Definitionof termsa. Person means any individual,partnership, corporation, association, orother organized group of persons, or thelegal successor or representative of theforegoing, and includes the PhilippineGovernment or any agency thereof, or anyother government, or any of its politicalsubdivisions, or any agency of the foregoing.b. Cash price or delivered price, incase of trade transactions, is the amount ofmoney which would constitute fullQ RegulationsPart III - Page 12Manual of Regulations for Non-Bank Financial Institutions