MORNBFI Vol. 1 - Planters Development Bank

§§ 4405Q.2 - 4405Q.408.12.31requirement to ensure that such bonds areliquid: Provided, further, That such bondsshall qualify as eligible reserve for trust andother fiduciary duties only to the extent ofthe present value of the bond computedusing the original yield to maturity (as ofauction/issue date).f. Tobacco Excise Tax ReceivableMonetization Program InvestmentCertificates (TEXTR Certificates) backed byreceivables representing the unreleasedportion of the obligation of the NationalGovernment to its LGUs for their share ofthe Tobacco Excise Taxes under R.A. No.7171 amounting to P1.85 billion andcovering the years 2001 and 2002:Provided, That such securities shall be eligibleonly to the extent of the present value of thesecurities computed using the original yieldto maturity as of auction/issue date.g. Securities received, pursuant to theDomestic Debt Exchange Offer of theRepublic of the Philippines, in exchangefor securities that are eligible reserves fortrust duties.(As amended by Circular No. 509 dated 01 February 2006)§ 4405Q.3 Valuation of securities andbasis of computation of the basic securitydeposit requirement. For purposes ofdetermining compliance with the basicsecurity deposit under this Section, theamount of securities so deposited shall bebased on their book value, that is, cost asincreased or decreased by thecorresponding discount or premiumamortization.The base amount for the basic securitydeposit shall be the average of themonth-end balances of total trust,investment management and otherfiduciary assets of the immediatelypreceding calendar quarter.§ 4405Q.4 Compliance period;sanctions. The trustee or fiduciary shallhave thirty (30) calendar days after the endof every calendar quarter within which todeposit with the BSP the securitiesrequired under this Section.The following sanctions shall beimposed for any deficiency in the basicsecurity deposit for the faithful performanceof trust and other fiduciary duties:a. On the QB:i. Monetary penalty/ies:Penalty per Calendar DayOffenseThird andTrust First Second subsequentAsset Sizeoffense(s)Up toP500 P600.00 P700.00 P800.00millionAboveP500million P1,000.00 P1,250.00 P1,500.00but notexceedingP1 billionAboveP1 billionbut not P2,000.00 P3,000.00 P4,000.00exceedingP10 billionAboveP10 billionbut not P5,000.00 P6,000.00 P7,000.00exceedingP50 billionAboveP50 billion P8,000.00 P9,000.00 P10,000.00QBs with Full Trust Authority and with Trust Assets ofii. Non-monetary penalty beginningwith the third offense (all QBs) - Prohibitionagainst the acceptance of new trust andother fiduciary accounts, and from renewingexpiring trust and other fiduciary contractsup to the time the violation is corrected.b. On the trust officer and/or otherofficer(s) responsible for the deficiency/non-compliance:(1) First offense - warning thatsubsequent violations shall be dealt withmore severely;Q RegulationsPart IV - Page 6Manual of Regulations for Non-Bank Financial Institutions