MORNBFI Vol. 1 - Planters Development Bank

APP. Q-5611.31.12RECEIVERSHIP PROCEDURES FOR NON-BANKS WITH QUASI-BANKINGFUNCTIONS (NBQBs) AND TRUST ENTITIESA. Pre-Takeover PreparationsIn preparation for actual takeover, thereceiver designated by the Monetary Board(“MB”) shall, as much as practicable, see toit that the following procedures areaccomplished:1. Designation of deputy receiver(s)and the formation of a completereceivership team which preferably includesan auditor and a lawyer. The compositionof the team shall depend on the size, typeof institution and the number of branches;2. Planning, organization, andcoordination of the duties and functions ofall members of the team and completebriefing of the mechanics and the strategyof the takeover in a conference called forthe purpose;3. Drawing-up/formulation ofpolicies, guidelines and strategies to ensurethe effective implementation of MonetaryBoard (“MB”) resolutions, BSP Circulars andother applicable laws in relation to thereceivership of the institution;4. Arrange security measures for thetakeover; and5. Review of the examination papers/files and other documents pertaining to theinstitution to be taken over.B. Actual TakeoverDuring the actual takeover, the followingprocedures shall be observed:1. Serve the letter of authority from theDeputy Governor of the Supervision andExamination Sector on the takeoveraddressed to the President/Board ofDirectors of the institution. The receiver/deputy receiver shall see to it that the officialreceiving the said letter of authority indicateshis designation, date and time of receipt onthe duplicate copies of the letter.In case the management of theinstitution refuses to allow the takeover, thereceiver/deputy receiver shall immediatelyreport the matter to the nearest office of thePhilippine National Police and to the MBfor further instructions;2. As soon as the official of theinstitution receives the letter of authority ontakeover, all operations shall be under thedirection of the receiver or deputy receiver.The receiver shall suspend all operationsexcept collections of loans and receivables;3. Post a notice in the mostconspicuous place in the institution’spremises (usually the main door) informingthe public of the placement of the institutionunder receivership;4. Adopt appropriate securitymeasures, such as hiring of private securityguards, to prevent removal of records andother properties from the premises of theinstitution;5. Notify in writing all of theinstitution’s depository banks of thereceiver’s takeover with instruction not tohonor any withdrawal from the institution’sdeposit accounts without the writtenapproval of the receiver/deputy receiver;6. Request or secure copies of trialbalance, statement of condition andstatement of earnings and expenses as of thelast working day preceding the actualtakeover;7. Open a new deposit account(preferably a current account-savingsaccount combo) with a reputable bankwithin the vicinity, in the name of the closedinstitution, with the Receiver as theauthorized signatory and custodian. TheReceiver may also maintain the existingaccount of the institution provided that theReceiver shall be the authorized signatory.Manual of Regulations for Non-Banks Financial InstitutionsAppendix Q-56 - Page 11