MORNBFI Vol. 1 - Planters Development Bank

APP. Q-1908.12.31Sec. 8. Loans and Investmentsa. Financing companies mayengage in direct lending if authorized bythe secondary purposes in its articles ofincorporation and in accordance withSection 42 of the Corporation Code of thePhilippines (B.P. 68).b. Unless otherwise authorized by theCommission, the total investment in realestate and in shares of stock in a real estatedevelopment corporation and other realestate based projects shall not at any timeexceed twenty-five (25%) per cent of thenet worth of the investing financingcompany.Sec. 9. Conveyance of Evidences ofIndebtedness and Financed Receivablesa. The negotiation, sale or assignmentby financing companies of evidences ofindebtedness shall be in accordance withthe rules of the Commission on registrationof commercial papers.b. Accounts which have been factoredor discounted by, the lease receivables of,and other evidences of indebtedness (notcovered in Item a. above) issued ornegotiated to, a financing company shallnot be sold, assigned or transferred in anymanner except to banks including their trustaccounts, trust companies, QBs,investment houses including their trustaccounts, financing companies, investmentcompanies, NSSLAs, insurance companies,government FIs, pension and retirementfunds approved by the Bureau of InternalRevenue, educational assistance fundsestablished by the National Government;Provided, That the negotiation of evidenceof indebtedness to pension funds oreducational assistance funds shall be on arecourse basis.Sec. 10. Other Activitiesa. Financing companies not dulyauthorized to perform quasi-bankingfunctions shall not act as dealers incommercial papers but may act as dealersin other securities provided they are dulylicensed by the Commission as such.b. Financing companies shall not actas dealers of certificates of time deposit.c. Except in cases of issuances toprimary institutional lenders, financingcompanies without quasi-banking licenseshall not issue instruments other thanpromissory notes, to cover placementswith, or borrowing by, them.Sec. 11. Purchase Discount/Fees/Serviceand Other Charges - The purchasediscounts, fees, service and other chargesof financing companies on assignments ofcredit, purchases of installment papers,accounts receivable or other evidences ofindebtedness, factoring of accountsreceivable or other evidences ofindebtedness, or leasing transactions shall be inaccordance with the rules prescribed bythe Monetary Board, in consultation withthe Commission, pursuant to the provisionsof Section 5 of R.A. No. 5980, as amendedby P.D. No. 1454.Sec. 12. Networth for OperatingFinancing Companies - The company'snetworth shall be maintained at an amountnot less than that required under Sections2.b. and 5.c. hereof.Sec. 13. Prohibitionsa. No corporation shall be allowed toinclude financing activities as hereindefined as one of its secondary purposes.b. No person, association, partnershipor corporation shall do or hold itself out asdoing business as a financing company orfinance and investment company or underany other title or name tending to give thepublic the impression that it is a financingcompany unless so authorized underR. A. No. 5980, as amended.Q RegulationsAppendix Q-19 - Page 6Manual of Regulations for Non-Bank Financial Institutions