MORNBFI Vol. 1 - Planters Development Bank

§§ 4108Q.3 - 4113Q08.12.31BSP as of the date of merger/consolidationover a period not exceeding ten (10) years;i. Subject to approval of the MonetaryBoard, concurrent officerships between amerged/consolidated bank/FI and anotherbank/FI may be allowed; andj. Any right or privilege granted amerging bank under a rehabilitationprogram previously approved by theMonetary Board or under any specialauthority previously granted by theMonetary Board shall continue to be ineffect.The revaluation of assets and staggeredbooking of valuation reserves shall beavailable for a period of two (2) years from19 February 1999 while the rest of theincentives enumerated under Subsec.4108Q.3 shall be available for a period ofthree (3) years from 31 August 1998.The foregoing incentives may also begranted in cases of purchases or acquisitionsof majority or all of the outstanding sharesof stock of a QB.Secs. 4109Q - 4110Q (Reserved)D. CAPITALIZATIONSec. 4111Q (2008 - 4106Q) MinimumRequired Capitalization. A QB shall havea minimum combined capital accounts ofP300.0 million.Combined capital accounts shall meanthe total of capital stock, retained earningsand profit and loss summary, net of (a) suchunbooked valuation reserves and othercapital adjustments as may be required bythe BSP, (b) total outstanding unsecuredcredit accommodations, both direct andindirect, to directors, officers, allstockholders and their related interests(DOSRI) and, (c) unsecured loans, othercredit accommodations and guaranteesgranted to subsidiaries and affiliates. Withrespect to Item “b” hereof, the provisionsof Sec. 4326Q shall apply except that in thedefinition of stockholders in Subsec.4326Q.1, the qualification that hisstockholdings, individually and/or togetherwith his related interests in the lending QB,amount to ten percent (10%) or more of thetotal subscribed capital stock of the QB,shall not apply for purposes of this Item.Any appraisal surplus or appreciation creditas a result of appreciation or an increase inbook value of the assets of the QB shall beexcluded, except in the case of merger andconsolidation, where the appraisalincrement resulting from the revaluationshall form part of capital for purposes ofdetermining single borrower’s limit andcapital-to-risk assets ratio.Any foreign equity shall be registeredwith and approved by the Board ofInvestments and the appropriate departmentof the BSP.(As amended by Circular No. 560 dated 31 January 2007)Sec. 4112Q (2008 - 4107Q) MinimumCapital of Investment House. The minimumpaid-in capital requirement for an IH shallbe P300 million pursuant to R.A. No. 129,as amended by R.A. No. 8366.Secs. 4113Q (2008 - 4108Q) SanctionsAny or all of the following sanctions maybe imposed on any QB which fails tomaintain at least the applicable minimumcapital under Secs. 4111Q and 4112Q:(1) Suspension of authority to engage inquasi-banking functions;(2) Suspension of authority to engage intrust/investment management activities (inthe case of an IH);(3) Cease-and-desist order (in the caseof an IH);(4) No new/renewal/extension of creditaccommodations to DOSRI;(5) Prohibition against declaration ofcash dividends;(6) Suspension of the privilege toestablish and/or open approved branches,agencies, offices, etc.; and(7) Other sanctions as may be imposedby the Monetary Board.Manual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart I - Page 11