MORNBFI Vol. 1 - Planters Development Bank

§§ 4320Q.1 - 4320Q.210.12.31penalties, insurance fees, processing/servicefees and other charges.c. Minimum amount due or minimumpayment required. Means the minimumamount that the credit cardholder needs topay on or before the payment due date for aparticular billing period/cycle as definedunder the terms and conditions or remindersstated in the statement of account/billingstatement which may include: (1) totaloutstanding balance multiplied by therequired payment percentage or a fixedamount whichever is higher; (2) any amountwhich is part of any fixed monthlyinstallment that is charged to the card; (3)any amount in excess of the credit line; and(4) all past due amounts, if any.d. Default or delinquency. Shall meannon-payment of, or payment of any amountless than, the “Minimum Amount Due” or“Minimum Payment Required” within two(2) cycle dates, in which case, the “TotalAmount Due” for the particular billingperiod as reflected in the monthly statementof account may be considered in default ordelinquent.e. Acceleration clause. Shall mean anyprovision in the contract between the QBand the cardholder that gives the QB theright to demand the obligation in full in caseof default or non-payment of any amountdue or for whatever valid reason.f. Subsidiary refers to a corporationor firm more than fifty percent (50%) ofthe outstanding voting stock of which isdirectly or indirectly owned, controlled orheld with the power to vote by a QB orother FI.g. Affiliate refers to an entity linkeddirectly or indirectly to a QB or other FIthrough any one or a combination of any ofthe following:(1) Ownership, control or power tovote, whether by permanent or temporaryproxy or voting trust, or other similarcontracts, by a QB or other financialinstitution of at least ten percent (10%) ormore of the outstanding voting stock of theentity, or vice-versa;(2) Interlocking directorship orofficership, except in cases involvingindependent directors as defined underexisting regulations;(3) Common stockholders owningat least ten percent (10%) of theoutstanding voting stock of each FI andthe entity; or(4) Management contract or anyarrangement granting power to theQB or other FI to direct or cause thedirection of management and policies of theentity, or vice-versa.§ 4320Q.2 (2008 - 4337Q.2) Riskmanagement system. To safeguard theirinterests, QBs and subsidiary/affiliatecredit card companies are required toestablish an appropriate system formanaging risk exposures from credit cardoperations which shall be documented ina complete and concise manner. The riskmanagement system shall cover theorganizational set-up, records and reports,accounting, policies and procedures andinternal control.Written policies, procedures andinternal control guidelines shall beestablished on the following aspects ofcredit card operations:a. Requirements for application;b. Solicitation and applicationprocessing;c. Determination and approval ofcredit limits;d. Issuance, distribution and activationof cards;e. Supplementary or extension cards;f. Cash advances;g. Billing and payments;h. Deferred payment program orspecial installment plans;i. Collection of past due accounts;j. Handling of accounts for write-off;k. Suspension, cancellation andQ RegulationsPart III - Page 16Manual of Regulations for Non-Bank Financial Institutions