MORNBFI Vol. 1 - Planters Development Bank

§§ 4340Q - 4343Q10.12.31to the agricultural sector, and micro, smalland medium enterprises (MSMEs); and/or(ii) rediscounting and guarantee facilities forloans granted to the said sector orenterprises.c. Loans, other creditaccommodations, and/or guaranteesgranted to state universities and colleges(SUCs) shall be excluded from the thirtypercent (30%) ceiling on unsecured loansunder Secs. X330 and X331 of the MORB.d. In view of the fiscal autonomygranted under R.A. No. 7653 and theindependence prescribed under theConstitution, the BSP shall be consideredan independent entity, hence, not a relatedinterest of the Republic of the Philippinesand/or its agencies/departments/bureaus.Loans, other credit accommodations andguarantees of the BSP shall be considered:(1) non-risk; and (2) not subject to anyceiling;e. LGUs shall be considered separatefrom the Republic of the Philippines, othergovernment entities, and from one anotherdue to the full autonomy in the exercise oftheir proprietary functions and in themanagement of their economic enterprisesgranted to them under the LocalGovernment Code of the Philippines,subject to certain limitations provided bylaw, hence, not a related interest of theRepublic of the Philippines and/or itsagencies/departments/bureaus;f. Local Water Districts (LWDs),although GOCCs, shall be consideredseparate from the Republic of thePhilippines, other government entities, andfrom one another due to their fiscalindependence from the nationalgovernment, hence, not related interests ofthe Republic of the Philippines and/or itsagencies/department/bureaus, for purposesof these regulations;g. A director who acts as agovernment representative in the lendinginstitution shall not be excluded in thedeliberation as well as in the determinationof majority of the directors in cases of loans,other credit accommodations, andguarantees to the Republic of the Philippinesand/or its agencies/departments/bureaus;andh. A director of the lending institutionshall be excluded in the deliberation as wellas in the determination of majority of thedirectors in cases of loans, other creditaccommodations, and guarantees to theborrowing government entity other than theRepublic of the Philippines, its agencies,departments or bureaus where said directoris also a director, officer or stockholderunder existing DOSRI regulations.(Circular No. 514 dated 06 March 2006 as amended by CircularNos. 635 dated 10 November 2008, 616 dated 30 July 2008,580 dated 09 September 2007)F. (RESERVED)Secs. 4341Q - 4342Q (Reserved)G. SPECIAL TYPES OF LOANSSec. 4343Q (2008 - 4376Q) InterbankLoans. Interbank loan transactions shallinclude, among other things, (a) interbankcall loan (IBCL) transactions; (b) interbankterm loan transactions; (c) borrowingsevidenced by deposit substituteinstruments; and (d) purchases ofreceivables with recourse: Provided,however, That only IBCL transactionswhich are settled through the QBs’respective DDAs with the BSP viaPhilPaSS shall be eligible to zero percent(0%) reserve requirement: Provided,further, That funds borrowed by QBs fromtrust departments of banks/investmenthouses shall be excluded from the hereindefinition of interbank loan transactions.(As amended by Circular No. 703 dated 23 December 2010 and689 dated 16 June 2010)Manual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart III - Page 31