MORNBFI Vol. 1 - Planters Development Bank

§§ 4394Q.3 - 4394Q.1508.12.31of the agreed selling price or in theabsence thereof, the installment paymentson the principal had already amounted toat least twenty percent (20%) of the agreedselling price;(2) That payment of the principal mustbe in equal installments or in diminishingamounts and with maximum intervals ofone (1) year;(3) That any grace period in thepayment of principal shall not be more thantwo (2) years; and(4) That there is no installmentpayment in arrear either on principal orinterest. Provided, That a “Sales ContractReceivable” account shall be automaticallyclassified “Substandard” and considerednon-performing in case of non-payment ofany amortization due: Provided, further,That a “Sales Contract Receivable” whichhas been classified “Substandard” andconsidered non-performing due tonon-payment of any amortization due mayonly be upgraded/restored to unclassifiedand/or performing status after a satisfactorytrack record of at least three (3) consecutivepayments of the required amortization ofprincipal and/or interest has been established.(As amended by Circular No. 520 dated 20 March 2006)§§ 4394Q.4 - 4394Q.9 (Reserved)§ 4394Q.10 (2008 - 4396Q) Transfer/Sale of non-performing assets to a specialpurpose vehicle or to an individual. Theprocedures governing the transfer/sale ofnon-performing assets (NPAs) to a SpecialPurpose Vehicle (SPV) or to an individualthat involves a single family residentialunit, or transactions involving dacion enpago by the borrower or third party of anon-performing loan (NPL), for the purposeof obtaining the Certificate of Eligibility(COE) which is required to avail of theincentives provided under R.A. No. 9182are presented in Appendix Q-28.The accounting guidelines on the saleof NPAs to SPVs and to qualifiedindividuals for housing under the SPV Act of2002 are presented in Appendix Q-28-a.The significant timelines relative to theimplementation of R.A. No. 9182, alsoknown as the “Special Purpose VehicleAct”, as amended by R.A. No. 9343 arepresented in Appendix Q-28b.(As amended by M-2008-014 dated 17 March 2008, M-2008-005dated 04 February 2008, M-2007-013 dated 11 May 2007 andM-2006-001 dated 11 May 2006)§§ 4394Q.11 - 4394Q.14 (Reserved)§§ 4394Q.15 Joint venture of quasibankswith real estate developmentcompaniesa. Statement of policy. It is the policyof the BSP to encourage QBs to dispose oftheir ROPA in settlement of loans and otheradvances either through foreclosure ordacion en pago as well as other propertiesacquired as a consequence of a merger/consolidation which are no longernecessary for their quasi-bankingoperations. Towards this end, QBs arehereby authorized to enter into JointVenture Agreements (JVA) with real estatedevelopment companies for thedevelopment of said properties, subject tothe requirements prescribed under thisSubsection.b. For purposes of this Subsection,joint venture shall refer to a contractualarrangement/undertaking between a QBand a duly registered real estatedevelopment company (developer) for thepurpose of developing the abovementionedproperties of the QB. The QBcontributes said properties to theundertaking while the developercontributes all the development funds,resources, technical expertise, equipment,personnel and all other requirementsdesired or needed for the implementationQ RegulationsPart III - Page 36Manual of Regulations for Non-Bank Financial Institutions