MORNBFI Vol. 1 - Planters Development Bank

§§ 4322Q.2 - 4326Q08.12.31current market values are being used. Realestate security shall be appraised by anindependent appraisal company acceptableto the BSP and shall be reappraised everyyear thereafter.The term “first class collaterals” refersto assets and securities which have relativelystable and clearly definable value and/orgreater liquidity and are free from lien/encumbrance, such as:(1) Real estate;(2) Evidences of indebtedness of theRepublic of the Philippines and of the BSP,and other evidences of indebtedness orobligations the servicing and repayment ofwhich are fully guaranteed by the Republicof the Philippines;(3) Hold-out on and/or assignment ofdeposit substitutes maintained in the lendinginstitutions;(4) “Blue chip” shares of stocks, exceptthose issued by the lending entity or by itsparent company which owns more than fiftypercent (50%) of its outstanding shares ofstocks. For this purpose, the issuercorporation must be a listed corporation witha net worth of at least P1.0 billion and withannual net earnings during the immediatelypreceding five (5) years; and(5) Such other collaterals that theMonetary Board may declare as first classcollaterals from time to time.It is understood that the loan value to beassigned the collateral shall be as prescribedunder existing regulations.§ 4322Q.3 (Reserved)§ 4322Q.4 (2008 - 4351Q.3)Classification. The classification of a loanprior to restructuring, e.g., “Loans EspeciallyMentioned”, “Substandard” or “Doubtful”shall be retained: Provided, That a loan thatis not classified but which is non-performingprior to restructuring shall be classified, atleast, “Loans Especially Mentioned”:Provided, further, That restructured loanswith capitalized interest shall be classified,at least, “Substandard” and the requiredvaluation reserves shall be set upaccordingly: Provided, finally, That a moreadverse classification may be given, i.e.,“Substandard”, “Doubtful” or “Loss”, if thecircumstances warrant it as provided underAppendix Q-10.The upgrading of loan classification, e.g.,from “Substandard” to “Loans EspeciallyMentioned”, if circumstances warrant anupgrading in accordance with the criteriain Appendix Q-10, shall only be effectiveafter a satisfactory track record of paymentsof the required amortizations of principaland/or interest has been established.For this purpose, a satisfactory trackrecord of payments of principal and/orinterest shall mean three (3) consecutivepayments of the required amortizations ofprincipal and/or interest have been made.However, in the case of a restructured loanwith capitalized interest but not fullysecured by real estate with loan value ofup to sixty percent (60%) of the appraisedvalue of the real estate security and theinsured improvements thereon or otherfirst class collaterals, six (6) consecutivepayments of the required amortizations ofprincipal and/or interest must have beenmade.Secs. 4323Q - 4325Q (Reserved)E. LOANS/CREDITACCOMMODATIONS TO DIRECTORS,OFFICERS, STOCKHOLDERS ANDTHEIR RELATED INTERESTSSec. 4326Q (2008 - 4356Q) GeneralPolicy. Dealings of a QB with any of itsDOSRI shall be in the regular course ofbusiness and upon terms not lessfavorable to the QB than those offeredto others.Q RegulationsPart III - Page 22Manual of Regulations for Non-Bank Financial Institutions