MORNBFI Vol. 1 - Planters Development Bank

APP. Q-3108.12.31QUALIFICATION REQUIREMENTS FOR A BANK/NON-BANK FINANCIALINSTITUTION APPLYING FOR ACCREDITATION TO ACT AS TRUSTEE ON ANYMORTGAGE OR BOND ISSUED BY ANY MUNICIPALITY, GOVERNMENT-OWNED OR CONTROLLED CORPORATION, OR ANY BODY POLITIC(Appendix to Subsec. 4409Q.16)A bank/NBFI applying for accreditationto act as trustee on any mortgage or bondissued by any municipality, governmentownedor controlled corporation, or anybody politic must comply with thefollowing requirements:a. It must be a bank or NBFI underBSP supervision;b. It must have a license to engage intrust and other fiduciary business;c. It must have complied with theminimum capital accounts required underexisting regulations, as follows:UBs and KBs The amount required underexisting regulations or suchamount as may be requiredby the Monetary Board inthe futureBranches ofForeign BanksThrift BanksThe amount required underexisting regulationsP650 million or such amountsas may be required by theMonetary Board in the futureNBFIs Adjusted capital of at leastP300.0 million or suchamounts as may be requiredby the Monetary Board in thefuture.d. Its risk-based capital adequacy ratiois not lower than twelve percent (12%) atthe time of filing the application;e. The articles of incorporation orgoverning charter of the institution shallinclude among its powers or purposes,acting as trustee or administering any trustor holding property in trust or on depositfor the use, or in behalf of others;f. The by-laws of the institution shallinclude among others, provisions on thefollowing:(1) The organization plan or structureof the department, office or unit which shallconduct the trust and other fiduciarybusiness of the institution;(2) The creation of a trust committee,the appointment of a trust officer andsubordinate officers of the trust department;and(3) A clear definition of the duties andresponsibilities as well as the line and stafffunctional relationships of the various units,officers and staff within the organization.g. The bank’s operation during thepreceding calendar year and for the periodimmediately preceding the date ofapplication has been profitable;h. It has not incurred net weeklyreserve deficiencies during the eight (8)weeks period immediately preceding thedate of application;i. It has generally complied withbanking laws, rules and regulations, ordersor instructions of the Monetary Board and/or BSP Management in the last twopreceding examinations prior to the dateof application, particularly on the following:(1) election of at least two (2)independent directors;(2) attendance by every member of theboard of directors in a special seminar forboard of directors conducted or accreditedby the BSP;(3) the ceilings on creditaccommodations to DOSRI;(4) liquidity floor requirements forgovernment deposits;Manual of Regulations for Non-Bank Financial InstitutionsQ RegulationsAppendix Q-31 - Page 1