MORNBFI Vol. 1 - Planters Development Bank

§§ 4625Q.2 - 4625Q.408.12.31agreed on deal date (the first leg), and areverse exchange of the same two (2)currencies at a date further in the future (thesecond leg) at a rate (different from the rateapplied to the first leg) agreed on deal date.g. Foreign exchange forward shallrefer to a contract to purchase/sell a specifiedamount of currency against another at aspecified exchange rate for delivery at aspecified future date three (3) or morebusiness days after deal date.h. Non-deliverable forward (NDF)shall refer to an FX forward contract whereonly the net difference between thecontracted forward rate and the market rateat maturity (i.e., the fixing rate) shall besettled on the forward date.(As amended by Circular No. 591 dated 27 December 2007)§ 4625Q.3 (2008 - 4603Q.16)Documentation. Minimum documentaryrequirements for FX forward and swaptransactions in Appendix Q-29 shall bepresented on or before deal date to the QBsunless otherwise indicated.FX selling QBs shall stamp thesupporting documents upon presentation bycustomers as follows:a. For hedging transactions: “FXHEDGED/DELIVERABLE” or “FX HEDGED/NON-DELIVERABLE”;b. For funding transactions:“FX SOLD”, indicating the contract date andamount involved, and signed by the QB’sauthorized officer. Copies of all duly markedsupporting documents shall be retained bythe QBs and made available to the BSP forverification. The retained copies shall alsobe marked “DOCUMENTS PRESENTED ASREQUIRED” and signed by the QB’sauthorized officer.(As amended by Circular No. 591 dated 27 December 2007)§ 4625Q.4 (2008 - 4603Q.17) Tenor/maturity and settlementa. Forward sale of FX (whetherdeliverable or non-deliverable). The tenor/maturity of such contracts shall not belonger than: (i) the maturity of theunderlying FX obligation; or (ii) theapproximate due date or settlement of theFX exposure. For deliverable FX forwardcontracts, the tenor/maturity shall beco-terminus with the maturity of theunderlying obligation or the approximatedue date or settlement of the FX exposure.This shall not preclude pre-termination ofthe contract due to prepayment of theunderlying obligation or exposure:Provided, That for foreign currency loans,prior BSP approval has been obtained forthe prepayment and a copy of suchapproval is presented to the QBcounterparty.b. FX Swaps - No restriction ontenor.c. Settlement of NDFs - All NDFcontracts with residents shall be settled inpesos.d. Remittance of FX proceeds ofdeliverable forward and swap contracts.FX proceeds of deliverable forwardand swap contracts shall be delivered bythe QB counterparty directly to thebeneficiaries concerned except for foreigninvestments where said FX proceeds arereconverted to Philippine pesos andre-invested in eligible peso instrumentssuch as those listed in Item “A.2.2” ofAppendix Q-29. For this purpose,beneficiaries shall refer to the FCDU ofa QB or a non-resident entity (e.g.,creditor, supplier, investor) to whom thecustomer is committed to pay/remit FX.(As amended by Circular No. 591 dated 27 December 2007)(Next page is Part VI - Page 7)Manual of Regulations for Non-Bank Financial Institutions Q RegulationsPart VI - Page 6c