CBP Circular Letter

April 12, 1988 CBP CIRCULAR LETTER TO : All Accredited Government Securities Dealers, Banks, Financial Intermediaries and All Concerned Pending adoption of more sophisticated system of control and security measures for government securities transactions, particularly involving bearer certificates , all concerned are urged to review, update, improve and tighten their internal control system for specialized operations concerning government securities, enjoining strict adherence to existing rules particularly the following: 1. Signing authority of officers called for by nature of transaction The signature of two duly designated Class A officers, or anyone of the designated Class A officers jointly with any designated Class B officer should be required. The specimen of the signatures of these officers must be on file with the Government Securities Department (GSD), Central Bank of the Philippines, in the prescribed form, sample attached as Annex "A". 2. Authorization requirement for representatives to claim, receive or take delivery of securities from GSD viz-a-viz the delivery of such securities to any division in said Department. Institutional investors transacting business with the GSD should submit standing authorizations signed by the officers referred to under No. 1 hereof, with specimen signatures and recent photographs of authorized representatives. Every request to take delivery of securities from the Central Bank must be accompanied by a specific written authority giving the name of the authorized representative and complete description of the securities requested. Individual authorizations of persons whose names and pictures are not on file with GSD shall be dishonored. Moreover, no changes in delivery instruction shall be allowed. 3. Custodianship facility for Treasury Bills Any accredited dealer or non-dealer bank which has not availed of this facility may do so by filing an application with the GSD, with the following fees for such custodianship service: Monthly Rate For the first P100 million (face amount) or a fraction thereof P100.00 For every succeeding P100 million or fraction thereof 50.00 4. One-day prior to maturity presentation of maturity bearer securities All dealers, banks, and institutional investors are encouraged to present and surrender maturing bearer securities to the Central Bank for redemption one (1) day before maturity date for prompt servicing and payment of proceeds. 5. Option to specify/restrict redemption payment at maturity on back of bearer certificates As an added control measure and purely at the option of dealers, banks or institutional holders owning Treasury Bills and/or other bearer securities, restriction/specification at maturity date of payment of redemption proceeds of bearer certificates may be typed over or rubber-stamped at the back side of each of the certificate which may read, as follows: "To the Central Bank for redemption for the account of Name of redeeming dealer/bank/institution ) _____________________ _____________________ Authorized Signature Authorized Signature" Such typed or stamped instruction should be undertaken only at or one day before maturity date to avoid undue restriction of negotiability which is inconsistent with the freely negotiable nature of bearer securities. 6. Updated list of authorized GSD officials and employees with their respective signatures and initials. As guide for every type of transaction involving several divisions of the Department, attached is subject listing with corresponding designation/positions and specimen signatures. (SGD.) EUGENIO NIERRAS, JR. Deputy Governor