CBP Circular No. 877-82

May 28, 1982 CBP CIRCULAR NO. 877-82 The Monetary Board, in its Resolution No. 981 dated May 28, 1982, approved the amendment of Circulars No. 739, 740, 741 and 742, as amended, as follows: SECTION 1. Section 64 of Circular No. 739, as amended, is hereby amended by adding the following after paragraph (g) thereof to read as follows: "(h) Secured loan, borrowing, or credit accommodation shall refer to : "(1) any loan, discount, credit or advance, or portion thereof referred to in Section 65 which is secured by real estate mortgage; chattel mortgage on tangible assets; standby letters of credit issued by foreign banks; assignment of or hold-out on deposits or deposit substitutes maintained in the lending bank; cash margin deposits; or assignment or pledge of government securities or readily marketable bonds and other high grade debt securities except those issued by the lending entity; "(2) customer's liability under import bills outstanding for not more than thirty (30) days from date of original entry; "(3) sales contract receivable arising from sale of real property on credit where title to the property is retained by the bank. "(i) Unsecured loan, borrowing or credit accommodation shall refer to any loan, discount, credit or advance or portion thereof, referred to in Section 65 which is not, secured in accordance with paragraph (h) above." SECTION 2. Section 45 of Circular No. 740, as amended, is hereby amended by adding the following after paragraph (f) thereof to read as follows: "(g) Secured loan, borrowing, or credit accommodation shall refer to: "(1) any loan, discount, credit or advance, or portion thereof, referred to in Section 46 which is secured by real estate mortgage; chattel mortgage on tangible assets; standby letters of credit issued by foreign banks; assignment of, or hold-out on, deposits or deposit substitutes maintained in the lending bank; cash margin deposits; or assignment or pledge of government securities or readily marketable bonds and other high-grade debt securities except those issued by the lending entity; "(2) sales contract receivable arising from sale of real property on credit wherein the title to the property is retained by the bank. "(h) Unsecured loan, borrowing or credit accommodation shall refer to any loan, discount, credit or advance or portion thereof referred to in Section 46 which is not secured in accordance with paragraph (g) above." SECTION 3. Section 38 of Circular No. 741, as amended, is hereby amended by adding the following after paragraph (f) thereof to read as follows: "(g) Secured loan, borrowing, or credit accommodation shall refer to any loan, discount, credit or advance, or portion thereof, referred to in Section 39 which is secured by real estate mortgage; chattel mortgage on tangible assets; standby letters of credit issued by foreign banks; assignment of, or hold-out on deposits maintained in the lending bank; or assignment or pledge of government securities or readily marketable bonds and other high-grade debt securities except those issued by the lending entity. The same shall also include sales contract receivable arising from sale of real property on credit wherein title to the property is retained by the bank. "(h) Unsecured loan, borrowing, or credit accommodation shall refer to any loan, discount, credit or advance, or portion thereof referred to in Section 39 which is not secured in accordance with paragraph (g) above." SECTION 4. Section 2.b, Article II, Chapter IV of Circular No. 742, as amended, is hereby amended by adding the following after paragraph (3) thereof to read as follows: "(4) Secured loan, borrowing, or credit accommodation shall refer to any loan, discount, credit or advance, or portion thereof referred to in item (c) of this Section which is secured by real estate mortgage; chattel mortgage on tangible assets; standby letters of credit issued by foreign banks; assignment of or hold-out on deposit substitutes issued by the lending entity; cash margin deposits; lease contracts receivable to the extent covered by guaranty deposits; or assignment or pledge of government securities or readily marketable bonds and other high-grade debt securities except those issued by the lending entity. "For investment houses with quasi-banking functions, a secured loan, borrowing or credit accommodation shall likewise include: "(1) customer's liability under import bills outstanding for not more than thirty (30) days from date of original entry; "(2) sales contract receivable arising out of sale of real property on credit wherein title to the property is retained by the NBQB. "(5) Unsecured loan, borrowing or credit accommodation shall refer to any loan, discount, credit or advance, or portion thereof referred to in item (c) of this Section which is not secured in accordance with paragraph (4) above." This Circular shall take effect immediately. (SGD.) JAIME C. LAYA Governor