CBP Circular No. 957-83

October 17, 1983 CBP CIRCULAR NO. 957-83 The Monetary Board, under its Resolution No. 1667 dated October 7, 1983, approved the following amendments to the provisions of Books I and IV of the Manual of Regulations for Banks and Other Financial Intermediaries which relate to loans/credit accommodations to Directors, Officers, Stockholders and their Related Interests (DOSRI): 1. Item "h" of Subsec. 1326.1 of Book I is hereby amended 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 Sec. 1327 which is secured by real estate mortgage; chattel mortgage on tangible assets; standby letters of credit issued by foreign banks excluding Philippine branches of 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. (Effective October 8, 1982). (2) Customer's liability under import bills outstanding for not more than thirty (30) days from the date of original entry; (3) Sales contract receivable arising from sale of real property or credit where title to the property is retained by the bank; and (4) Customer's liability-import bills under trust receipts outstanding for not more than thirty (30) days from date of booking: Provided , That the booking under trust receipt shall have been made not later than the thirty-first day from the date of original entry referred to in sub-item (2) above." 2. The second paragraph of Item "d" of Sec. 4326Q of Book IV is likewise hereby amended to read as follows: "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; and (3) Customer's liability-import bills under trust receipts outstanding for not more than thirty (30) days from date of booking: Provided , that the booking under trust receipts shall have been made not later than the thirty-first day from the date of original entry referred to in sub-item (1) above." 3. This Circular shall take effect immediately. For the Monetary Board: (SGD.) GABRIEL C. SINGSON Senior Deputy Governor