MORNBFI Vol. 1 - Planters Development Bank

§§ 4404Q.4 - 4405Q.208.12.31§ 4404Q.4 (2008 - 4404Q.2) Pre-operatingrequirements. An institution authorized toengage in trust and other fiduciary businessshall, before engaging in actual operations,submit to the BSP the following:a. Government securities acceptableto the BSP amounting to P500,000 asminimum basic security deposit for thefaithful performance of trust and otherfiduciary duties required under Subsec.4405Q.1;b. Organization chart of the trustdepartment which shall carry out the trustand other fiduciary business of theinstitution; andc. Names and positions of individualsdesignated as chairman and members ofthe trust committee, trust officer and othersubordinate officers of the trust departmentwith their respective bio-data andstatement of duties and responsibilities.Sec. 4405Q Security for the FaithfulPerformance of Trust and OtherFiduciary Business§ 4405Q.1 Basic security deposit. Aninstitution authorized to engage in trust andother fiduciary business shall deposit withthe BSP eligible government securities assecurity for the faithful performance of itstrust and other fiduciary duties equivalentto at least one percent (1%) of the bookvalue of the total volume of trust, otherfiduciary and investment managementassets: Provided, That at no time shall suchdeposit be less than P500,000.Scripless securities under Registry ofScripless Securities (RoSS) system of theBureau of Treasury (BTr) may be used asbasic security deposit for trust duties usingthe guidelines in Appendix Q-21.§ 4405Q.2 Eligible securitiesGovernment securities which shall bedeposited in compliance with the abovebasic security deposit shall consist of:a. Evidences of indebtedness of theRepublic of the Philippines and of the BSPand any other evidences of indebtednessor obligations the servicing and repaymentof which are fully guaranteed by theRepublic of the Philippines; and such otherkinds of securities which may be declaredeligible by the Monetary Board: Provided,That such securities shall be free,unencumbered, and not utilized for anyother purpose: Provided, further, That suchsecurities shall have remaining maturitiesof not more than three (3) years from thedate of deposit with the BSP;b. NDC Agri-Agra ERAP Bonds,regardless of remaining maturities;c. Five (5) - and Ten (10) - year SpecialPurpose Treasury Bonds (SPTBs) providedsuch bonds shall not be hypothecated inany way or earmarked for any otherpurpose and they meet the three (3)-yearremaining maturity requirement to ensurethat such bonds are liquid;d. Securities backed by theunreleased Internal Revenue Allotments(IRA) of LGUs (issued by a Special PurposeTrust administered by the DBP under theIRA Monetization Program of the Union ofLocal Authorities of the Philippines) therelease of which IRA on scheduled date ofpayment has been certified by the DBMas not being subject to any conditionalities:Provided, That such securities shall beeligible only to the extent of the presentvalue of the bond computed using theoriginal yield to maturity (as of auction/issue date): Provided, further, That forreserve for trust and other fiduciary duties,the remaining maturities of the securitiesshall not exceed three (3) years; ande. Zero Coupon Bond Issue by theHGC of up to P7.0 billion five (5)-yearregular series and up to P3.0 billion seven(7)-year special series to finance its guarantyservicing of socialized and low-costhousing projects: Provided, That they meetthe three (3)-year remaining maturityManual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart IV - Page 5