MORNBFI Vol. 1 - Planters Development Bank

§§ 4239Q.4 - 4239Q.608.12.31§ 4239Q.4 (2008 - 4217Q.5) Minimumfeatures. Bond issues by QBs shall havethe following minimum features:a. Form; issue price; denomination. Thetrust indenture and the name of the indenturetrustee shall be indicated on the face of thebond certificate.The SEC-assigned bond registrationnumber and expiry date, if any, shalllikewise be indicated, stamped on the faceof each bond certificate issued.Bonds may be issued at face value, at adiscount, or at a premium. Minimumdenomination shall be P20,000.b. Term. The minimum maturity of thebonds shall be four (4) years. No optionalredemption before the fourth year shall beallowed.c. Interest; manner; form of paymentThe bonds shall not be subject to interestrate ceilings prescribed by the MonetaryBoard or Act No. 2655, as amended.Interest paid in advance shall not exceedthe interest for one (1) year: Provided, Thatinterest shall not be paid in kind.d. Trust indenture; collaterals; sinkingfund. A trust indenture shall be executedbetween the issuer and a qualified trustcorporation as trustee, which shall neither bean affiliate nor a subsidiary of the issuer.The following shall be deemed as eligiblecollateral and shall be maintained at respectivevalues indicated in relation to the face valueof the bond issue:(1) Government securities - Aggregate currentmarket value of100%(2) High-grade privatesecurities listed in thebig board of stockexchanges(3) Real estate - Net book value of100%(4) Unmatured receivablesacquired with recourse;lease contracts receivable(5) Unmatured receivablesacquired without recourse- Aggregate currentmarket value of150%- Net book value of150%- Net book value of200%Government and private securities,certificates of title and documentsevidencing receivables offered as securityshall be physically delivered to the indenturetrustee.Substitution of collaterals shall beallowed: Provided, That in no case shall thecollateral fall below the herein-requiredratios.The issuer may, at his option, providefor the retirement at maturity of the bondissue through a sinking fund to bedeposited with and managed by theindenture trustee.e. Bond registry. The bonds shall befully registered as to principal and interest.The issuer, its trustee, agent or underwritermust maintain a bond registry duly approvedby the SEC for recording, in initial andsubsequent transfers, the names oftransferees, date of transfer, purchase priceand serial numbers of bonds transferred.§ 4239Q.5 (2008- 4217Q.2) Underwritingof bonds. Bond issues may beunderwritten by entities including thosewhich are affiliates or subsidiaries of theissuer. The investment of affiliates orsubsidiaries in said bond issue shall besubject to:(a) individual and aggregateceilings of ten percent (10%) and thirtypercent (30%), respectively, of the bondissue; and (b) the condition that theinvesting affiliate or subsidiary does nothave any outstanding loan from the issueror that it shall not incur any indebtednessfrom the issuer during the period that theinvestment remains outstanding.§ 4239Q.6 (2008 - 4217Q.6) Reserverequirement. A five percent (5%) reserveshall be maintained against all bond issuesof QBs.The form/composition of reservesfor bond issues shall be in accordancewith the applicable rules on reserveagainst deposit substitute liabilities andborrowings.Q Regulations Manual of Regulations for Non-Bank Financial InstitutionsPart II - Page 8