MORNBFI Vol. 1 - Planters Development Bank

APP. Q-1008.12.31as a result of the reduction of the amountrequired to be set up to one percent (1%)shall first be applied to unbooked specificvaluation reserves, whether or notauthorized to be booked on a staggeredbasis and only the remainder can beconsidered as income.The specific and general allowances forprobable losses shall be adjustedaccordingly for additional allowancerequired by the BSP: Provided, That incases of partially secured loans, only tenpercent (10%) allowance shall be requiredfor the portion thereof which are coveredby the appraised value of the collateral:Provided, further, That said collateral isreappraised at least annually.Management is, however, encouragedto provide additional allowance as it deemsprudent and to formulate additional specificguidelines within the context of the hereindescribedsystem.(As amended by Circular Nos. 622 dated 16 September 2008,549 dated 09 October 2006 and 520 dated 20 March 2006)Q RegulationsAppendix Q-10 - Page 6Manual of Regulations for Non-Bank Financial Institutions