MORNBFI Vol. 1 - Planters Development Bank

§§ 4411Q.4 - 4411Q.708.12.31R.A. No. 337, as amended, and subject tothe requirements of Sections 75, 76 and 77of R.A. No. 337, as amended.The specific directives required underthis Subsection shall consist of the followinginformation:(1) The transaction to be entered into;(2) Borrower’s name;(3) Amount involved; and(4) Collateral security(ies), if any.§ 4411Q.5 Transactions requiring priorauthority. An investment manager shall notundertake any of the following transactionsfor the account of a client, unless prior toits execution, such transaction has been fullydisclosed and specifically authorized inwriting by the client:a. Lend, sell, transfer or assign moneyor property to any of the departments,directors, officers, stockholders, oremployees of the investment manager, orrelatives within the first degree ofconsanguinity or affinity, or the relatedinterests of such directors, officers andstockholders; or to any corporation wherethe investment manager owns at least fiftypercent (50%) of the subscribed capital orvoting stock in its own right and not astrustee nor in a representative capacity;b. Purchase or acquire property or debtinstruments from any of the departments,directors, officers, stockholders, oremployees of the investment manager, orrelatives within the first degree ofconsanguinity or affinity, or the relatedinterests of such directors, officers andstockholders; or from any corporation wherethe investment manager owns at least fiftypercent (50%) of the subscribed capital orvoting stock in its own right and not astrustee nor in a representative capacity;c. Invest in equities of or in securitiesunderwritten by the investment manager ora corporation in which the investmentmanager owns at least fifty percent (50%)of the subscribed capital or voting stock inits own right and not as trustee, nor in arepresentative capacity; andd. Sell, transfer, assign or lend moneyor property from one trust fiduciary or IMAto another trust, fiduciary or IMA exceptwhere the investment is in any of thoseenumerated in Items "a" to "d" of Subsec.4411Q.4.Directors, officers, stockholders andtheir related interest covered by this Subsectionshall be those considered as suchunder existing regulations on loans toDOSRI under Part III - E of this Manual. Theprocedural and reportorial requirements insaid regulations shall also apply.The disclosure required under thisSubsec. shall consist of the followingminimum information:(1) The transactions to be entered into;(2) Identities of the parties involved inthe transaction and their relationships (shallnot apply to Item “d” of this Subsec.);(3) Amount involved; and(4) Collateral security(ies), if any.The above information shall be madeknown to clients in a separate instrumentor in the very instrument creating theinvestment management relationship.§ 4411Q.6 Title to securities and otherproperties. Securities such as promissorynotes, shares of stocks, bonds and otherproperties of the portfolio shall be issuedor registered in the name of the principal orof the investment manager: Provided, Thatin case of the latter, the instrument shallindicate that the investment manager isacting in a representative capacity and thatthe principal’s name is disclosed thereat.§ 4411Q.7 Ceilings on loans. Loansfunded by IMAs shall be subject to theDOSRI ceilings imposed on QBs in PartIII - E of this Manual. For purposes ofdetermining compliance with said ceilings,the total amount of said loans granted bythe institution and its trust department toQ RegulationsPart IV - Page 30Manual of Regulations for Non-Bank Financial Institutions