MORNBFI Vol. 1 - Planters Development Bank

§§ 4237Q.3 - 4239Q.308.12.31Subsequent offenses - Fines of P5,000a day, reckoned from the date placementstarted up to the date placement waswithdrawn, for each violation shall beassessed on the bank.b. Other sanctionsFirst offense - Reprimand for thedirectors/officers who approved theacceptance/placement with a warning thatsubsequent violations will be subject tomore severe sanctions.Subsequent offenses -(1) Suspension for ninety (90) dayswithout pay for directors/officers whoapproved the placement.(2) Suspension or revocation of theauthority to engage in quasi-banking functions.Sec. 4238Q (2008 - 4391Q.2) WithoutRecourse Transactions. No QB shall sell,discount, assign, negotiate, in whole or inpart such as thru syndications, participationsand other similar arrangements, any note,receivable, loan, debt instrument and anytype of financial asset or claim, exceptgovernment securities, on a withoutrecourse basis, or be a party in any capacityin any such transactions on a withoutrecourse basis, unless such receivable, note,loan, debt instrument and financial asset orclaim is registered with the SEC. Thisprohibition includes transactions betweenan investment house and its trustdepartment.Sec. 4239Q (2008 - 4217Q) Bond Issues ofQuasi-banks. The following guidelines shallgovern the bond issues of QBs.§ 4239Q.1 (2008 - 4217Q.1) Definitionof terms. For purposes of this Section, thefollowing terms shall mean:a. Government securities shall refer tothe evidences of indebtedness of theRepublic of the Philippines or itsinstrumentalities, or of the BSP, and mustbe freely negotiable and regularly serviced.b. Net book value shall refer to theacquisition cost of property or accounts,plus additions and improvements thereon,less valuation reserves, if any.c. Current market value shall refer tothe value of the property as established by aduly licensed and independent appraiser.d. Affiliate shall refer to an entity linkeddirectly or indirectly to a QB by means of:(1) Ownership, control or power to vote,of ten percent (10%) or more of the outstandingvoting stocks of the entity, or vice-versa;(2) Interlocking directorships orofficerships;(3) Common stockholders owning tenpercent (10%) or more of the outstandingvoting securities;(4) Management contract or anyarrangement granting power to direct orcause the direction of management andpolicies;(5) Voting trustee holding ten percent(10%) or more of the outstanding votingsecurities;(6) Permanent proxy or voting trustconstituting ten percent (10%) or more ofthe outstanding voting securities.e. Subsidiary shall refer to a corporationor firm more than fifty percent (50%) ofthe outstanding voting stock of which isdirectly or indirectly owned, controlled, orheld with power to vote by another.§ 4239Q.2 (2008 - 4217Q.3) Compliancewith SEC rules. QBs issuing or intending toissue bonds shall comply with the new ruleson the registration of long-term commercialpapers (Appendix Q-8).§ 4239Q.3 (2008 - 4217Q.4) Noticeto Bangko Sentral . Within three (3) daysfrom approval by the SEC of its bond issue,a QB shall notify the appropriatedepartment of the BSP of the approval,attaching documents required by the SECfor the issuance and registration of thebond issue.Manual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart II - Page 7