MORNBFI Vol. 1 - Planters Development Bank

§§ 4330Q - 4333Q08.12.31Sec. 4330Q (2008 - 4360Q) IndividualCeiling; Single- Borrower Limit. The totaloutstanding direct credit accommodationsto each of the QB’s directors, officers orstockholders, excluding those granted underofficers’ fringe benefit plans, shall notexceed, at any time, an amount equivalentto the unencumbered portion of his loansto, and placements with, the QB and thebook value of his paid-in capitalcontribution in the lending QB: Provided,That unsecured credit accommodations toeach of the QB’s directors, officers orstockholders shall not exceed thirtypercent (30%) of his total creditaccommodations.Notwithstanding the provisions ofthis Section, credit accommodations ofa QB to any one of its directors, officers,stockholders or their related interestsshall not exceed the SBL prescribed forQBs.Sec. 4331Q (2008 - 4361Q) AggregateCeiling; Ceiling On UnsecuredLoans. Except with prior approval of theMonetary Board, the total outstandingborrowings of directors, officers, orstockholders, whether direct orindirect,shall not exceed 100% ofcombined capital accounts, net of deferredincome tax as defined in Item “i” of Subsec.4116Q.2 and such unbooked valuationreserves and other capital adjustments asmay be required by the BSP: Provided,That in no case shall the total unsecureddirect and indirect borrowings ofdirectors, officers, and stockholdersexceed thirty percent (30%) of theaggregate ceiling or the outstanding direct/indirect loans thereto, whichever is lower.For the purpose of determiningcompliance with the ceiling on unsecuredloans, QBs shall be allowed to averagetheir ceiling on unsecured loans andtheir outstanding unsecured loans everyweek.In evaluating requests for extension ofloans in excess of the aggregate ceiling, theBSP shall consider the credit standing of theborrower, viability of the projects financedby such loans in relation to nationalobjectives, collateral or security and otherpertinent considerations.Sec. 4332Q (2008 - 4362Q) Exclusionsfrom Aggregate Ceiling. The following creditaccommodations shall be excluded indetermining compliance with theaggregate ceiling:a. Credit accommodations to theextent covered by a hold-out on, orassignment of, deposit substitutes in thelending QB, or covered by cash margindeposits or secured by evidences ofindebtedness of the Republic of thePhilippines or of the Bangko Sentral, or byother evidences of indebtedness orobligations, the servicing and repaymentof which are fully guaranteed by theRepublic of the Philippines;b. Credit accommodations to acorporate stockholder which meets all thefollowing conditions:(1) The corporation is a non-financialinstitution;(2) Its shares are listed and traded in thedomestic stock exchanges;(3) Its stockholdings in the lending QBdo not exceed thirty percent (30%) of thevoting stock of the QB; and(4) No person or group of personsrelated within the first degree ofconsanguinity or affinity holds/owns morethan twenty percent (20%) of the subscribedcapital of the corporation; andc. Credit accommodations grantedunder officers’ fringe benefit plans.Sec. 4333Q (2008 - 4363Q) CreditAccommodations Under Officers’ FringeBenefit Plans. The aggregate outstandingliabilities to a QB of its officers, extendedunder officers’ fringe benefit plans for theQ RegulationsPart III - Page 28Manual of Regulations for Non-Bank Financial Institutions