MORNBFI Vol. 1 - Planters Development Bank

§§ 4235Q.12 - 4237Q.210.12.31clearing;(3) Suspension of access to BSPrediscounting facilities;(4) Suspension of lending or foreignexchange operations or authority toaccept new deposits or make newinvestments;(5) Revocation of quasi-banking license;(6) Revocation of authority to performtrust operations; and(7) Suspension for 120 days without payof the directors/officers responsible for theviolation.§ 4235Q.13 (2008 - 4212Q) Recording;payment; maturity; renewal(Deleted by Circular No. 703 dated 12 December 2010)§ 4235Q.14 (2008 - 4214Q) Interbankborrowings(Deleted by Circular No. 703 dated 23 December 2010)§ 4235Q.15 (2008 - 4215Q)Borrowings from trust departments ormanaged funds of banks or investmenthouses. Funds borrowed by QBs fromtrust departments or managed funds ofbanks or IHs are not considered asinterbank borrowings and, therefore, aresubject to the:a. reserve requirement on depositsubstitutes; andb. minimum trading lot rule.(As amended by Circular No. 703 dated 23 December 2010)Sec. 4236Q (2008 - 4213Q) Minimum TradingLot. The minimum size of any single depositsubstitute transaction shall be P50,000.In connection with the minimum tradinglot rule above stated, no QB shall issuedeposit substitute instruments in the nameof two (2) or more persons or accountsexcept those falling under the followingrelationships in which cases, comminglingmay be allowed: (a) husband and wife; (b)persons related to each other within thesecond degree of consanguinity; and (c) intrust for (ITF) arrangements.Sec. 4237Q (2008 - 4216Q) MoneyMarket Placements of Rural Banks. QBsshall not accept money market placementsfrom any RB unless the latter presents acertification under oath stating: (a) that ithas no overdue special time deposits;(b) that it has no past due obligations withthe BSP or other government FIs; (c) theamount of its current obligations, if any,with said government FIs; and (d) theamount of its total outstanding moneymarket placements. However, in no caseshall such QBs sell receivables to RBswithout recourse.§ 4237Q.1 (2008 - 4216Q.1) Definitionof terms. As used in this Section, thefollowing terms shall have the followingmeanings:Money market placements shall includeinvestments in debt instruments, includingpurchases of receivables with recourse tothe lending institution, except purchasesof government securities on an outrightbasis.Government securities shall includeevidences of indebtedness of the Republicof the Philippines and the BSP and otherevidences of indebtedness or obligationsof government entities, the servicing andrepayment of which are fully guaranteedby the Republic of the Philippines.§ 4237Q.2 (2008 - 4216Q.2) Conditionsrequired on accepted placementsPlacements accepted must comply with thefollowing conditions:a. That the total money marketplacements of an RB, as stated in thecertification, including the placement beingaccepted by the entity concerned, shall notexceed the RB’s combined capital accountsor net worth less current obligations withthe BSP or other government FIs;b. The maturity of the money marketplacement shall not exceed sixty (60)days; andQ Regulations Manual of Regulations for Non-Bank Financial InstitutionsPart II - Page 6