MORNBFI Vol. 1 - Planters Development Bank

§§ 4235Q.5 - 4235Q.611.12.31date it was corrected.(2) Other sanctionsFirst offense – Reprimand for the directors/officers responsible for the violation.Subsequent offense –(a) Suspension for ninety (90) dayswithout pay of directors/officers responsiblefor the violation;(b) Suspension or revocation of theaccreditation to perform custodianshipfunction;(c) Suspension or revocation of theauthority to engage in quasi-bankingfunction; and/or(d) Suspension or revocation of the authorityto engage in trust and other fiduciary business.b. The guidelines to implement thedelivery by the seller of securities to thebuyer or to his designated third partycustodian are shown in Appendix Q-38.Sanctions. Without prejudice to thepenal and administrative sanctions providedfor under Sections 36 and 37, respectivelyof the R.A. No. 7653 (The New CentralBank Act), violation of any provision of theguidelines in Appendix Q-38 shall be subjectto the following sanctions/penaltiesdepending on the gravity of the offense:(a) First offense –(1) Fine of up to P10,000 a day or theinstitution for each violation reckoned fromthe date the violation was committed upto the date it was corrected; and(2) Reprimand for the directors/officersresponsible for the violation.(b) Second offense -(1) Fine of up to P20,000 a day for theinstitution for each violation reckoned fromthe date the violation was committed upto the date it was corrected; and(2) Suspension for ninety (90) dayswithout pay of directors/officers responsiblefor the violation.(c) Subsequent offenses–(1) Fine of up to P30,000 a day for theinstitution for each violation from the datethe violation was committed up to the dateit was corrected;(2) Suspension or revocation of theauthority to act as securities custodian and/or registry; and(3) Suspension for 120 days without payof the directors/officers responsible for theviolation.(As amended by Circular No. 714 dated 10 March 2011,M-2007-002 dated 23 January 2007; M-2006-009 dated 06 July2006, M-2006-002 dated 05 June 2006 and Circular No. 524dated 31 March 2006)§ 4235Q.6 (2008 - 4211Q.5) Otherrules and regulations governing the issuanceand treatment of deposit substituteinstrumentsa. If there is any stipulation that paymentof the deposit substitute shall be chargeableagainst a particular deposit account of themaker or issuer that is maintained withanother bank, it shall further provide thatthe liability of the maker or issuer of theinstrument shall not be limited to theoutstanding balance of said deposit account.b. Any agreement allowing the issueror maker to substitute the underlyingsecurities shall further provide that theactual substitution shall be with the priorwritten consent of the payee.c. Automatic renewal upon maturity ofthe instrument may be effected only underterms and conditions previously stipulatedby the parties.d. Stipulations between the maker or issuerand the payee which are embodied in separateinstruments shall be specifically referred to inthe deposit substitute instruments and madean integral part thereof.e. In the case of repurchase agreementsand certificates of assignment/participationwith recourse, the stipulation shall clearly stateeither (a) that the underlying securities arebeing delivered to the buyer or assignee asManual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart II - Page 3