MORNBFI Vol. 1 - Planters Development Bank

§§ 4651Q.7 - 4651Q.1208.12.31Provided, That no further expenses shallbe borne by the originator/seller after theasset pool has been conveyed to the SPT.§ 4651Q.8 (2008 - 4626Q.8)Representations and warrantiesa. Standard representations andwarranties refer to an existing state of factsthat the originator, seller or servicer caneither control or verify with reasonable duediligence at the time the assets are sold. Anybreach of representation or warranty maygive rise to legal recourse.b. The representations or warrantiesshall be clear and explicit and, in particular,shall not relate to the future creditworthinessof the assets in the asset pool or theperformance of the SPT or the securitiesissued.c. Any agreement to pay damages as aresult of breach of warranties andrepresentations shall hold only where:(1) there is a well-documentednegotiation of the agreement in good faith;(2) the burden of proof for a breach ofrepresentation or warranty rests with theother party;(3) damages are limited to the lossincurred as a result of the breach; and(4) there is a written notice of claimspecifying the basis for the claim.The BSP shall be notified of any instancewhere a QB or its subsidiaries/affiliates hasagreed to pay damages arising out of anybreach of representation or warranty.§ 4651Q.9 (2008 - 4626Q.9) Thirdparty review. A due diligence review by anindependent entity mutually agreed uponby the seller and the issuer shall be donebefore the assets are sold.§ 4651Q.10 (2008 - 4626Q.10)Originator and sellera. The seller may itself be theoriginator, and may likewise be designatedas the servicer.b. The seller or originator shall deliverto the trustee all original documents orinstruments with respect to each asset sold.§ 4651Q.11 (2008 - 4626Q.11) Trusteeand issuera. The trustee shall be the trustdepartment of a bank licensed to do businessin the Philippines.b. The trustee shall have the right tomanage or administer the asset pool. Thetrustee shall see to it that necessarymeasures are taken to protect the assetpool.c. The trustee shall undertake aperformance review of the asset pool at leastquarterly and shall prepare a report to investorsindicating, among others, collections, fees andother expenses as well as defaults, whichreport shall be made available to the investorsat anytime after thirty (30) days from end ofthe reference quarter.d. The trustee shall initiate all civilactions including foreclosure of mortgagedproperties to effect collection of receivablesin the asset pool. The servicer or any otherparty may be designated by the trustee toperform such function on a case-by-case basis.e. The trustee may invest the investiblefunds only in obligations issued and/or fullyguaranteed by the government of theRepublic of the Philippines or by the BSPand such other high-grade readily marketabledebt securities as the BSP may approve.f. The trustee shall designate areplacement of the servicer if the latter failsto satisfactorily perform its duties andresponsibilities according to the terms andconditions of the servicing agreement.§ 4651Q.12 (2008 - 4626Q.12) Servicera. The servicer shall perform its dutiesaccording to the terms and conditions ofthe servicing agreement and such otherwritten instructions as the trustee may issueon a case-by-case basis. Collections madeby the servicer shall be remitted promptlyManual of Regulations for Non-Bank Financial Institutions Q RegulationsPart VI - Page 11