MORNBFI Vol. 1 - Planters Development Bank

§§ 4328Q - 4328Q.509.12.31where the foreign bank or other FI acts asguarantor through the issuance of letters ofcredit, guarantee letters or assignment of adeposit in a currency eligible as part of theinternational reserves and held in a bankin the Philippines to secure creditaccommodations granted to anotherperson or entity: Provided, That the foreignbank stockholder shall automatically besubject to the ceilings as herein providedin the event that its contingent liability asguarantor becomes a real liability; ande. Deposits of a QB with a bank,whether domestic or foreign, which hasstockholdings in the QB.§ 4328Q.1 (2008 - 4358Q.1) Applicabilityto credit card operations. The credit cardoperations of QBs shall not be subject tothese regulations where the creditcardholder is a director, officer orstockholder of the QB or their relatedinterests (DOSRI): Provided, That (a) theprivilege of becoming a credit cardholderis open to all qualified persons on thebasis of selective criteria which areapplied by the QB to all applicantsthereof; and (b) the director, officer orstockholder/related interest concernedreimburses/pays the QB for the billedamount in full on or before the paymentdue date in the billing or statement ofaccount, as set by the QB for all otherqualified credit cardholders on availmentsmade for the same period on their creditcards. However, the transaction shall besubject to applicable DOSRI regulationsif the director, officer, or stockholder/related interest concerned:a. fails to reimburse/pay the QB withinthe period mentioned herein; orb. on the outset, opts for deferredpayment scheme, and the availment isbooked by the QB.Sec. 4328Q.2 - 4328Q.4 (Reserved)§ 4328Q.5 (2008 - 4328Q) Loans, othercredit accommodations and guaranteesgranted to subsidiaries and/or affiliatesa. Statement of policy. Dealings of aQB with its subsidiaries and/or affiliatesshall be in the regular course of businessand upon terms not less favorable to theinstitution than those offered to others.b. Ceilings. The total outstandingloans, other credit accommodations andguarantees to each of the QB’ssubsidiaries and affiliates shall not exceedten percent (10%) of the net worth of thelending QB: Provided, That the unsecuredloans, other credit accommodations andguarantees to each of said subsidiaries andaffiliates shall not exceed five percent (5%)of such net worth: Provided, further, Thatthe total outstanding loans, other creditaccommodations and guarantees to allsubsidiaries and affiliates shall not exceedtwenty percent (20%) of the net worth ofthe lending QB: Provided, finally, That thesesubsidiaries and affiliates are not relatedinterest of any of the director, officer, and/or stockholder of the lending institution,except where such director, officer orstockholder sits in the board of directors oris appointed officer of such corporation asrepresentative of the QB.Loans, other credit accommodationsand guarantees granted by a QB to itssubsidiaries and affiliates engaged in energyand power generation consistent with themedium-term Philippine development plan/medium-term public investment program ofthe National Government duly certified assuch by the secretary of the socio-economicplanning shall be subject to a separateindividual limit of twenty-five percent (25%)of the net worth of the lending QB: Provided,That the unsecured portion thereof shall notexceed twelve and one-half percent (12.5%)of such net worth: Provided, further, Thatthese subsidiaries and affiliates are notrelated interests of any of the director,Manual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart III - Page 25