MORNBFI Vol. 1 - Planters Development Bank

§§ 4403Q08.12.31b. Other fiduciary business shall referto any activity of trust-licensed institutionsresulting from a contract or agreementwhereby the institution binds itself torender services or to act in a representativecapacity such as in an agency,guardianship, administratorship of wills,properties and estates, executorship,receivership and other similar serviceswhich do not create or result in atrusteeship. It shall exclude collecting orpaying agency arrangements and similarfiduciary services which are inherent in theuse of the facilities of the other operatingdepartments of such institution. Investmentmanagement activities, which areconsidered as among other fiduciarybusiness, shall be separately defined in thesucceeding item to highlight its being amajor source of fiduciary business.c. Investment management activityshall refer to any activity resulting from acontract or agreement primarily forfinancial return whereby the institution (theinvestment manager) binds itself to handleor manage investible funds or anyinvestment portfolio in a representativecapacity as financial or managing agent,adviser, consultant or administrator offinancial or investment management,advisory, consultancy or any similararrangement which does not create or resultin a trusteeship.d. Trust is a relationship or anarrangement whereby a person called atrustee is appointed by a person called atrustor to administer, hold and managefunds and/or property of the trustor for thebenefit of a beneficiary.e. Trust agreement is an instrument inwriting covering the terms and conditionsof the trust.f. Trustee is any person who holdslegal title to the funds and/or property of atrust.g. Trustor is any person who creates atrust.h. Beneficiary is any person for whosebenefit a trust is created.i. Fiduciary shall refer to any personor entity engaged in any of the otherfiduciary business as herein defined whereno trustor-trustee relation exists.j. Agency shall refer to a contractwhereby a person binds himself to rendersome service or to do something inrepresentation or on behalf of another, withthe consent or authority of the latter.k. Principal shall refer to the personwho grants authority to another personcalled an agent, under a contract to enterinto transactions in his behalf.l. Agent shall refer to a person whoacts in representation or on behalf ofanother person with the latter's authority.m. Trust Department shall refer to thedepartment, office, unit, group, division orany aggrupation which carries out the trustand other fiduciary business of aninstitution.n. Trust Officer shall refer to thedesignated head or officer-in-charge of thetrust department.o. Trust account shall refer to anaccount where transactions arising from atrusteeship are kept and recorded.p. Common Trust Fund (CTF) shall referto a fund maintained by an institutionauthorized to perform trust functions undera written and formally established plan,exclusively for the collective investmentand reinvestment of certain moneyrepresenting participations in the planreceived by it in its capacity as the trustee.q. Fiduciary account shall refer to anaccount where transactions arising fromany of the other fiduciary businesses arekept and recorded.r. Investment Manager shall refer toany person or entity engaged in investmentmanagement activities as herein defined.s. Investment Management Departmentshall refer to the department, unit,group, division or any aggrupationQ RegulationsPart IV - Page 2Manual of Regulations for Non-Bank Financial Institutions