MORNBFI Vol. 1 - Planters Development Bank

§§ 4235Q.3 - 4235Q.511.12.31i. Each instrument shall be serially prenumbered.j. The copy delivered to the payee shallbear the word “Original” and the copiesretained by the issuer shall be identified as“Duplicate,” “File Copy” or words of similarimport.k. Only security paper with adequatesafeguards against alteration or falsificationshall be used.Deposit substitute instruments shallconform to the language prescribed by theBSP.Any substantial deviation therefrom orany additional stipulation therein shall bereferred to the BSP for prior approval. Thesize and appearance of these instrumentsshall not be similar to the size andappearance of checks. Formats ofstandardized instruments in AppendicesQ-6 to Q-6-k shall be followed.Rubber stamping, typewriting andhandwriting some provision shall not beconsidered compliance with saidregulations.Borrowings of QBs from the loans anddiscounts window of banks or QBs shallbe exempted from the documentationrequirements of this Section: Provided,That the exemption from thedocumentation requirements shall not beconstrued or interpreted as exemption ofsaid borrowings from the other rules onborrowings by QBs and from other BSPregulations on deposit substitutes.§ 4235Q.4 (2008 - 4211Q.7) Interbankborrowings. Except for interbankborrowings which are settled through theQB's respective DDAs with the BSP viaPhilPaSS, all interbank borrowings shall beevidenced by deposit substitute instrumentcontaining the minimum features prescribedin Subsec. 4235Q.3.(As amended by Circular No, 703 dated 23 December 2010)§ 4235Q.5 (2008 - 4211Q.4) Deliveryof securitiesa. Securities, warehouse receipts,quedans and other documents of title whichare the subject of quasi-banking functions,such as repos, shall be physically delivered,if certificated, to a BSP accredited custodianthat is mutually acceptable to the lender/purchaser and borrower/seller, or by meansof book-entry transfer to the appropriatesecurities account of the BSP accreditedcustodian in a registry for said securities, ifimmobilized or dematerialized while theoverlying principal borrowing instrumentshall be physically delivered to the lender/purchaser. The custodian shall hold thesecurities in the name of the borrower/seller, but shall keep said securitiessegregated from the regular securitiesaccount of the borrower/seller if theborrower/seller has an existing securitiesaccount with the custodian. Provided, Thata financial institution (NBFI) authorized bythe BSP to perform custodianship functionmay not be allowed to be custodian ofsecurities issued or owned by saidinstitution, its subsidiaries or affiliates, orof securities in bearer form.The delivery shall be effected uponpayment and shall be evidenced by asecurities delivery receipt duly signed byauthorized officers of the custodian anddelivered to both the lender/purchaser andseller/borrower.Sanctions. Violation of any provision ofItem “a” shall be subject to the followingsanctions/penalties:(1) Monetary penaltiesFirst Offense – Fine of P10,000 a dayfor each violation reckoned from the datethe violation was committed up to the dateit was corrected.Subsequent offenses – Fine of P20,000a day for each violation reckoned from thedate the violation was committed up to theQ Regulations Manual of Regulations for Non-Bank Financial InstitutionsPart II - Page 2