CBP Circular No. 1391-93

May 20, 1993 CBP CIRCULAR NO. 1391-93 The Monetary Board, in its Resolution No. 20 dated January 15, 1993, approved the following amendments to the rules on registration of commercial papers. 1. Section 4(e) of the New Rules on Registration of Short Term Commercial Papers under Appendix 1/ of the Manual of Regulations for Banks and other Financial Intermediaries (MOR) is hereby amended to read as follows: "(e) Evidence of indebtedness issued to the following primary institutional lenders: banks, including their trust accounts, trust companies , non-bank financial intermediaries authorized to engage in quasi-banking functions, investment houses including their trust accounts , financing companies, investment companies, non-stock savings and loan associations, building and loan associations, venture capital corporations, special purpose corporations referred to in Central Bank Monetary Board Resolution No. 1051 dated June 19, 1981, insurance companies, government financial institutions, pawnshops, pension and retirement funds approved by the Bureau of Internal Revenue, educational assistance funds established by the national government ; and other entities that may be classified as primary institutional lenders by the Central Bank, in consultation with the Securities and Exchange Commission ; provided all such evidences of indebtedness shall be held on to maturity and shall neither be negotiated nor assigned to any one other than the Central Bank, and the Development Bank of the Philippines with respect to private development banks in connection with their rediscounting privileges, and financial intermediaries with quasi-banking functions." LexLib 2. Section 7(f) of the New Rules on Registration of Long Term Commercial Papers under Appendix 2/ of the MOR is hereby amended to read as follows: "(f) Evidence of indebtedness issued to the following primary institutional lenders: banks, including their trust accounts, trust companies, non-bank financial intermediaries authorized to engage in quasi-banking functions, investment houses including their trust accounts, financing companies, investment companies, non-stock savings and loan associations, building and loan associations , venture capital corporations, special purpose corporations referred to in Central Bank Monetary Board Resolution No. 1051 dated June 19, 1981, insurance companies, government financial institutions, pawnshops, pension and retirement funds approved by the Bureau of Internal Revenue, educational assistance funds established by the national government; and other entities that may be classified as primary institutional lenders by the Central Bank, in consultation with the Securities and Exchange Commission; provided all such evidences of indebtedness shall be held on to maturity and shall neither be negotiated nor assigned to any one other than the Central Bank, and the Development Bank of the Philippines with respect to private development banks in connection with their rediscounting privileges, and financial intermediaries with quasi-banking functions ." This Circular shall take effect immediately. (SGD.) ANDRE NAVATO Officer-in-Charge APPENDIX 8 DOCUMENTS TO BE SUBMITTED BY PRIVATE SECTOR BORROWERS FOR REGISTRATION OF THEIR SHORT TERM TRADE CREDITS The borrower shall submit to EDD A. Within five (5) banking days after credit line is granted: 1. A notarized undertaking to the effect that: a. The loan shall be used exclusively to finance eligible trade transactions; b. The borrower undertakes not to deposit proceeds of the loan in its FCDU/off-shore foreign exchange account; c. The borrower consents to the Central Bank examination of the specific deposit account/s with their respective authorized agent banks where the peso loan proceeds shall be deposited; and d. It is fully aware of the attendant responsibilities as a borrower as well as the right of the Central Bank to examine its books of accounts and to impose appropriate sanctions for any misrepresentations and/or misapplication of loan proceeds. 2. The company profile which shall include the following documents, if not yet previously submitted/on-file with the Central Bank: a. Articles of Incorporation and Certificate of Registration with the Securities and Exchange Commission; b. Capital structure showing the amounts and percentages of equity participation by nationality, together with list of members of the Board of Directors and principal officers/stockholders with respective shares in the equity of the firm, citizenship and resident status; c. Certificate of Registration with the Board of Investments and other government agencies, if any; d. Latest audited financial statements and interim financial statements, if the former is six months old at the time of loan application; and e. Certification from an independent auditor as to the status of the company's short term loans, if any. 3. The relevant loan agreement or alternative document evidencing the borrower's acceptance of the loan offer and the terms and conditions therefor, as well as the security/collateral for the same, if any. B. Within three (3) banking days after end of reference . . . weekly report on transactions and status of short term foreign loans (ST-2) obtained.