MORNBFI Vol. 1 - Planters Development Bank

§§ 4235Q.6 - 4235Q.1210.12.31collaterals or (b) that the ownership thereofis being transferred to the buyer or assignee.f. The regulations on interbank loantransactions prescribed in Sec. 4343Q shallalso apply to interbank borrowings.(As amended by Circular No, 703 dated 23 December 2010)§ 4235Q.7 (2008 - 4211Q.6) Substitutionof underlying securities(Deleted by Circular No. 703 dated 23 December 2010)§ 4235Q.8 (2008 - 4211Q.7) Call slips/tickets for 24-hour loans(Renumbered by Circular No. 703 dated 23 December 2010)§ 4235Q.9 (2008 - 4211Q.8) Requirementto state nature of underlying securities(Deleted by Circular No. 703 dated 23 December 2010)§ 4235Q.10 (2008 - 4211Q.9) Compliancewith SEC rules. QBs shall comply with thenew rules on the registration of short-termand long-term commercial papers appendedhereto as Appendices Q-7 and Q-8.§ 4235Q.11 (Reserved)§ 4235Q.12 (2008 - 4211Q.12)Repurchase agreements coveringgovernment securities, commercial papersand other negotiable and non-negotiablesecurities or instruments. The followingregulations shall govern REPOs coveringgovernment securities, commercial papersand other negotiable and non-negotiablesecurities or instruments of QBs as well assale on a without recourse basis of saidsecurities by QBs.a. Proper recording anddocumentation of repos.QBs shall have a true and accurateaccount, record or statement of their dailytransactions. As such, repos coveringgovernment securities, commercial papersand other negotiable and non-negotiablesecurities or instruments must be properlyrecorded and documented in accordancewith existing BSP regulations.The absence of proper documentationfor repos is tantamount to willful omissionof entries relevant to any transaction,which shall be a ground for the impositionof administrative sanctions and thedisqualification from office of any directoror officer responsible therefor underexisting laws and regulations.b. Responsibilities of the chiefexecutive officer (CEO) or officer ofequivalent rank.It shall be the responsibility of theCEO or the officer of equivalent rank in aQB to:(1) Institute policies and proceduresto prevent undocumented or improperlydocumented repos covering governmentsecurities, commercial papers and othernegotiable and non-negotiable securitiesor instruments;(2) Submit a notarized certificationat the end of every semester that the QBdid not enter into any repo coveringgovernment securities, commercial papersand other negotiable and non-negotiablesecurities or instruments that are notdocumented in accordance with existingBSP regulations and that the QB hasstrictly complied with the pertinent rulesof the SEC and the BSP on the proper saleof securities to the public and performedthe necessary representations anddisclosures on the securities particularlythe following:(a) Informed the clients that suchsecurities are not deposits and as such,do not benefit from any insuranceotherwise applicable to deposits such as,but not limited to, R.A. No. 3591, asamended, otherwise known as the PDIClaw;(b) Informed and explained to theclient all the basic features of the securityQ Regulations Manual of Regulations for Non-Bank Financial InstitutionsPart II - Page 4