MORNBFI Vol. 1 - Planters Development Bank

APP. Q-13b08.12.31executed, the beneficial ownership of theGS that have been transferred to the CSA-ILF still belongs to the QBs.At 5:00 pm, the BSP shall sell back tothe Eligible Participant QB the GS at thesame price as the original BSP purchase.Partial repayment of a particular availmentwill not be allowed.In case the PhilPaSS Account balanceof the participating QB is not sufficient tocover the afternoon repayment transaction,the BSP and the participating QB mayagree on the following:a. BSP shall extend to the Eligibleparticipant QB an O/N-RP at 600 basispoints over the BSP’s regular overnightlending rate for the day. The O/N-RP shallbe paid not later than 11:00 am on maturitydate. Unpaid O/N-RP shall be automaticallyconverted into an absolute sale to the BSPof the subject GS earlier delivered/transferred to the CSA-ILF, pursuant to anILF availment by the Eligible Participant QB,in which case, BSP shall issue an instructionto BTr to deliver/transfer the subject GS fromthe BSP-ILF Securities Account to the BSPregular Principal Securities Account. The saleshall be evidenced by the issue ofConfirmation of Sale by the EligibleParticipant QB (Annex 2) and theConfirmation of Purchase by the BSPTreasury Department (Annex 3), or,b. Only in extreme cases, the BSPshall sell back to the participating QBs GSup to the extent of the PhilPaSS Accountbalance. The BSP shall issue an instructionto the BTr to transfer the remaining GSamounting to the unpaid ILF availmentfrom the BSP-ILF Securities Account to theBSP’s Regular Principal Securities Account.At the end of the day and after BSP’ssell-back of the GS to ILF participants,normally by 5:45 pm, the BSP TreasuryDepartment shall electronically instructRoSS, using the ILF RoSS system developedfor herein purpose, to return/deliver from theCSA-ILF of the participating QBs to theirrespective Regular Principal SecuritiesAccounts with the RoSS all unused/unencumbered GS. GS used for O/N-RPshall remain in the CSA-ILF until repaymentof subject O/N-RP or conversion to outrightsale the following day.Upon receipt of BSP’s electronicinstruction for the return of GS back to theparticipating QBs’ regular PrincipalSecurities Accounts, the BTr shall updatetheir database after which participating QBsmay request/download statements ofsecurities accounts for their verification.C. Eligible SecuritiesPeso-denominated scripless securitiesof the National Government that are freeand unencumbered and with remainingmaturity of eleven (11) days to ten (10) yearsshall be eligible for the ILF. GS that will beused for ILF purposes would be reclassifiedwith due consideration to the originalbooking of the security, as follows:Original Booking of GSTo be reclassified toa. Held for Trading Held for Trading – ILFb. Designated Fair Value Designated Fair ValueThrough Profit or Loss Through Profit or Loss - ILFc. Available for Sale Available for Sale - ILFd. Held to Maturity Held to Maturity - ILFD. Valuation of SecuritiesThe GS subject of an ILF transactionshall be valued based on the 11:16 amfixing rates of the previous business day,from the applicable Reuters PDEX pagesor any other valuation benchmark as maybe prescribed by the BSP.Q-RegulationsAppendix Q-13b - Page 2Manual of Regulations for Non-Bank Financial Institutions