MORNBFI Vol. 1 - Planters Development Bank

§§ 4326Q - 4326Q.108.12.31No QB shall grant, renew or extend anycredit accommodation to its DOSRIwhenever its combined capital accounts isdeficient relative to risk assets held underSec. 4115Q, or whenever its paid-in capitalis deficient relative to the required minimumcapitalization. Neither shall it grant, renewor extend any credit accommodation to anyof its DOSRI who has past due creditaccommodations with the QB.§ 4326Q.1 (2008 - 4356Q.1)Definitions. For purposes of theseregulations, the following definitions shallapply.a. Directors shall refer to QB directorsas defined in Sec. 4141Q.b. Officers shall refer to QB officers asdefined in Sec. 4142Q.c. Stockholder shall refer to anystockholder of record in the books of theQB/trust entity, acting personally, or throughan attorney-in-fact; or any other person dulyauthorized by him or through a trusteedesignated pursuant to a proxy or votingtrust or other similar contracts, whosestockholdings in the lending QB/trust entity,individual and/or collectively with thestockholdings of: (i) his spouse and/orrelative within the first degree byconsanguinity or affinity or legal adoption;(ii) a partnership in which the stockholderand/or the spouse and/or any of theaforementioned relatives is a generalpartner; and (iii) corporation, association orfirm of which the stockholder and/or hisspouse and/or the aforementionedrelatives own more than fifty percent (50%)of the total subscribed capital stock of suchcorporation, association or firm, amount toone percent (1%) or more of the totalsubscribed capital stock of the QB/trustentity.d. Outstanding loans to andplacements with the QB shall refer to loansto and deposit substitutes of the QB whichare not subject of an assignment orhold-out agreement.e. Book value of the paid-in capitalcontribution shall mean the proportionalamount of the QB’s total capital accounts (netof such unbooked valuation reserves and othercapital adjustments as may be required by theBSP) as the corresponding paid-in capitalcontribution of each director, officer orstockholder concerned bears to the total paidincapital of the QB: Provided, That as a basisfor determining the individual ceilingreferred to in Sec. 4330Q, correspondingbook value of the shares of stock of suchdirector, officer or stockholder which arethe subject of pledge, assignment or anyother encumbrance shall be deductedtherefrom.f. Secured loan, borrowing, or creditaccommodation shall refer to any loan,discount, credit or advance, or portionthereof referred to in Sec. 4327Q which issecured by real estate mortgage, chattelmortgage on tangible assets, standby lettersof credit issued by foreign banks,assignments of or hold-out on depositsubstitutes issued by the lending entity, cashmargin deposits, assignment or pledge ofgovernment securities or readily marketablebonds and other highgrade debt securitiesexcept those issued by the lending entity,or by its parent company which owns morethan fifty percent (50%) of its outstandingshares of stocks, or receivables arising fromfinancial leases to the extent of the guarantydeposit plus sixty percent (60%) of theremaining value of the leased equipment.For this purpose, the remaining value of theequipment under lease shall be determinedby dividing the acquisition cost by theoriginal term of the lease and multiplyingthe resulting ratio by the unexpired portionof the term.For investment houses withquasi-banking functions, a secured loan,borrowing or credit accommodation shalllikewise include:(1) Customer’s liability under importbills outstanding for not more than thirty(30) days from date of original entry;Manual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart III - Page 23