MORNBFI Vol. 1 - Planters Development Bank

§§ 4333Q - 4336Q08.12.31purpose of house, car, and appliancefinancing, and meeting educational,medical, hospital, and other similarexpenses, shall not exceed thirty percent(30%) of the combined capital accounts ofthe lending entity: Provided, That QBs shallsubmit, for record purposes, copies of theirofficers’ fringe benefit plans to theappropriate department of the BSP.Sec. 4334Q (2008 - 4364Q) ProceduralRequirements. The following provisionsshall apply if a director or officer is aparty, directly or indirectly, to, or actsas the representative or agent of, othersin any of the transactions under Sec.4327Q.a. Approval of the board of directors;when to obtain. Except with the priorwritten approval of the majority of thedirectors, excluding the director concerned,no loan or other credit accommodationshall be granted nor any of the transactionsunder Sec. 4327Q be entered into.b. Approval by the board; howmanifested. The approval shall bemanifested in a resolution passed by theboard of directors duly assembled during aregular or special meeting for the purposeand made of record.c. Majority of the directors;computation of. The computation of themajority of the directors, excluding thedirector concerned, shall be based on thetotal number of directors of the QB, asprovided in its articles of incorporation andby-laws.d. Contents of the resolution. Theresolution of the board of directors shallcontain the following information:(1) Name of the director or officerconcerned and his relationship as regardsthe credit accommodation, such asprincipal, endorser, spouse of borrower,etc.;(2) Nature of the loan or other creditaccommodation, purpose, amount, creditbasis for such loan or credit accommodation,security and appraisal thereof, maturity,interest rate, schedule of repayment, andother terms of the loan or creditaccommodation;(3) Date of the resolution;(4) Names of the directors who werepresent and who participated in thedeliberations of the meeting;(5) Names in print and signatures ofthe directors approving the resolution:Provided, That the corporate secretary maysign, under a power-of-attorney, in behalfof a director who was present in the boardmeeting and who approved suchresolution, in instances where suchsignature is necessary, to indicate thatsuch resolution was approved by amajority of the directors; and(6) Such other information as may berequired by the appropriate department ofthe SES.e. Transmittal of copy of board ofdirectors’ approval; contents thereof. Acopy of the written approval of the boardof directors, as herein required, shall besubmitted to the appropriate departmentof the SES within twenty (20) businessdays from the date of approval. The copymay be a duplicate of the original, or areproduction copy showing clearly thesignatures of the approving directors:Provided, That if a reproduction copy isto be submitted, it shall contain, on its faceor reverse side, a signed certification bythe secretary that it is a reproduction ofthe original written approval.Sec. 4335Q (Reserved)Sec. 4336Q (2008 - 4365Q) Sanctions. Anyviolation of the provisions of the foregoingrules shall be subject to any or all of thefollowing sanctions:a. Restriction or prohibition on the QBfrom declaring dividends until theoutstanding loans and other creditManual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart III - Page 29