MORNBFI Vol. 1 - Planters Development Bank

§§ 4625Q.14 - 4651Q.108.12.31(1) chronic, i.e., when the violationcontinues beyond three (3) business dayswithin a calendar month, but the excessposition is less than thirty percent (30%) ofthe allowable limit; and(2) abusive, i.e., when the violationcontinues beyond three (3) business dayswithin a calendar month and excess positionis thirty percent (30%) or more of theallowable limit."Chronic" Suspension of the QB’s cash dividendviolationdeclaration and branching privilegesuntil the violation is corrected but inno case shall such suspension be lessthan thirty (30) calendar days." Abusive" Suspension of the QB's cash dividendviolationdeclaration and branching privilegesuntil the violation is corrected but inno case shall such suspension be lessthan sixty (60) calendar days.c. The Monetary Board may imposeother non-monetary sanctions on a QB forviolations determined by BSP as “chronic”or “abusive” on a case-to-case basis,pursuant to Section 37 of R.A. No. 7653.d. QBs shall be duly advised by theBSP of their violations and thecorresponding sanctions imposed for suchviolations.e. A monetary penalty imposed on aQB shall be paid to the BSP CashDepartment, within three (3) business daysfrom the receipt of advice of said penaltyimposition.For purposes of imposing sanctions fordelayed, erroneous or unsubmittedreports, reports required under Subsec.4625Q.9 are classified as Category Breports and subject to correspondingpenalties.Counterparties that habitually canceldeliverable forwards without properjustification may be subject of a BSPwatchlist.(As amended by Circular No. 591 dated 27 December 2007)Secs. 4626Q - 4650Q (Reserved)Sec. 4651Q (2008 - 4626Q) Asset-BackedSecurities. The following regulations shallgovern the origination, issuance, sale,servicing and administration of assetbackedsecurities (ABS) by any QBincluding its subsidiaries and affiliatesengaged in allied activities, which aredomiciled in the Philippines.§ 4651Q.1 (2008 - 4626Q.1) Definitionof termsa. Assets shall mean loans orreceivables existing in the books of theoriginator prior to securitization. Suchassets are generated in the ordinary courseof business of the originator and mayinclude mortgage loans, consumptionloans, trade receivables, lease receivables,credit card receivables and other similarfinancial assets.b. Asset-backed securities shall refer tothe certificates issued by a special purposetrust (SPT) representing undividedownership interest in the asset pool.c. Asset pool shall mean a group ofidentified, self-amortizing assets that isconveyed to the SPT issuing the ABS andsuch other assets acquired as aconsequence of the securitization.d. Clean-up call shall refer to an optiongranted to the seller to purchase theremaining assets in the asset pool.e. Credit enhancement shall refer toany legally enforceable scheme that isintended to enhance the marketability ofthe ABS and increase the probability thatinvestors receive payment of amounts duethem.f. Guarantor shall refer to an entitythat guarantees the repayment of principaland interests on loans or receivablesincluded in the asset pool in the event ofdefault by the borrower.g. Investible funds shall refer to theproceeds of collection of loans or receivablesincluded in the asset pool which are not yetdue for distribution to investors.Q Regulations Manual of Regulations for Non-Bank Financial InstitutionsPart VI - Page 8