MORNBFI Vol. 1 - Planters Development Bank

§§ 4101Q.1 - 4101Q.208.12.31To be considered a financialintermediary, a person or entity mustperform any of the following functions ona regular and recurring, not on an isolatedbasis:a. Receive funds from one (1) groupof persons, irrespective of number, throughtraditional deposits, or issuance of debt orequity securities; and make available/lendthese funds to another person or entity, andin the process acquire debt or equitysecurities;b. Use principally the funds receivedfor acquiring various types of debt or equitysecurities;c. Borrow against, or lend on, or buyor sell debt or equity securities;d. Hold assets consisting principally ofdebt or equity securities such as promissorynotes, bills of exchange, mortgages, stocks,bonds, and commercial papers;e. Realize regular income in thenature of, but need not be limited to,interest, discounts, capital gains,underwriting fees, guarantees, fees,commissions, and service fees, principallyfrom transactions in debt or equitysecurities or by being an intermediarybetween suppliers and users of funds.Non-banking financial intermediariesshall include the following:(1) A person or entity licensed and/orregistered with any government regulatorybody as a non-bank financial intermediary,such as investment house (IH), investmentcompany, financing company, securitiesdealer/broker, lending investor (IH),pawnshop, money broker, fund manager,cooperative, insurance company, nonstocksavings and loan association (NSSLA)and building and loan association.(2) A person or entity which holds itselfout as a non-banking financial intermediary,such as by the use of a business name,which includes the term financing, finance,investment, lending and/or any word/phrase of similar import which connotesfinancial intermediation, or an entity whichadvertises itself as a financial intermediaryand is engaged in the function(s) wherefinancial intermediation is implied.(3) A person or entity performing anyof the functions enumerated in Items "a"to "e" of this Subsection.§ 4101Q.2 Guidelines on lendercount. The following guidelines shallgovern lender count on borrowings orfunds mobilized by non-bank financialintermediaries:a. For purposes of ascertaining thenumber of lenders/placers to determinewhether or not a non-bank financialintermediary is engaged in quasi-bankingfunctions, the names of payees on the faceof each debt instrument shall serve as theprimary basis for counting the lenders/placers except when proof to the contraryis adduced such as the official receipts ordocuments other than the debt instrumentitself. In such case the actual/real lenders/placers as appearing in such proof, shallbe the basis for counting the number oflenders/placers.In a debt instrument issued to two (2)or more named payees under an and/orand or arrangement, the number of payeesappearing on the instrument shall be the basisfor counting the number of lenders/ placers:Provided, however, That a debt instrumentissued in the name of a husband and wifefollowed by the word spouses, whetherunder an and, and/or or or arrangement orin the name of a designated payee underan in trust for (ITF) arrangement, shall becounted as one (1) borrowing/placement.b. Each debt instrument payable tobearer shall be counted as one (1) lender/placer except when the non-bank financialintermediary can prove that there is onlyone (1) owner for several debt instrumentsso payable.Q Regulations Manual of Regulations for Non-Bank Financial InstitutionsPart I - Page 2