MORNBFI Vol. 1 - Planters Development Bank

APP. Q-2808.12.31TRANSFER/SALE OF NON-PERFORMING ASSETS TO ASPECIAL PURPOSE VEHICLE OR TO AN INDIVIDUAL[Appendix to Sec. 4394Q.10 (2008 - 4396Q)]The following procedures shall governthe transfer/sale of NPAs to a SPV or to anindividual that involves a single familyresidential unit, or transactions involvingdacion en pago by the borrower or thirdparty of a NPL, for the purpose of obtainingthe COE which is required to avail of theincentives provided under R.A. No. 9182,as amended by R.A. No. 9343.a. Prior to the filing of any applicationfor transfer/sale of NPAs, a QB shallcoordinate with the BSP through the SDCand the appropriate department of the SESto develop a reconciled and finalizedmaster list of its eligible NPAs.For this purpose, QBs were requestedto submit a complete inventory of theirNPAs in the format prescribed underCircular Letter dated 07 January 2003.Only NPAs included in the masterlist thatmeet the definition of NPA, NPL andROPA under R.A. No. 9182 may qualifyfor the COE. The QBs shall be provided acopy of their reconciled and finalizedmasterlist for their guidance.Only QBs which have not yetsubmitted their masterlist of NPAs andintend to avail of the incentives and feeprivileges of the SPV Act 2nd Phaseimplementation are allowed to submit acomplete inventory of their NPAs in theformat prescribed under Circular Letterdated 07 January 2003. QBs which havealready submitted to BSP a masterlist ofNPAs as of 30 June 2002 in the 1st Phaseimplementation of the SPV Act will not beallowed to submit a new/amendedmasterlist.b. An application for eligibility ofspecific NPAs shall be filed in writing (hardcopy) by the selling QB with the BSPthrough the appropriate department of theSES for each proposed transfer of asset/s.Although no specific form is prescribed, theapplicant shall describe in sufficient detailits proposed transaction, identifying itscounterparty/ies and disclosing the terms,conditions and all material commitmentsrelated to the transaction.c. For applications involving morethan ten (10) NPA accounts, the list of NPAsto be transferred/sold shall be submittedin soft copy (by electronic mail or diskette)in excel format using the prescribed datastructure/format for NPLs and ROPAs tothe appropriate department of the SES ofthe applicant QB at the followingaddresses:SEDI-SPV@bsp.gov.phSEDII-SPV@bsp.gov.phSEDIII-SPV@bsp.gov.phSEDIV-SPV@bsp.gov.phFor applications involving ten (10)NPA accounts or less, it is preferable thatthe list be submitted also in soft copy. Theapplicant may opt to submit the list in hardcopy, provided all the necessaryinformation shown in the prescribed datastructure that are relevant to each NPL orROPA to be transferred/sold will beindicated. The list to be submitted in hardcopy would be ideal for the sale/transferof NPAs that involve one (1) promissorynote and/or one (1) asset item peraccount.d. The application shall beaccompanied by a written certificationsigned by a senior officer with a rank of atleast senior vice president or equivalent,who is authorized by the board of directors,or by the country head, in the case offoreign banks, that:Manual of Regulations for Non-Bank Financial InstitutionsQ RegulationsAppendix Q-28 - Page 1