Submission of Reports

CBP MEMORANDUM TO : Savings and Loan Associations No. 3 SUBJECT : Submission of Reports Effective July 1, 1965, all Savings and Loan Associations are hereby required to accomplish and submit to the Department of Savings and Loan Associations, Central Bank of the Philippines, Manila, the following reports pro forma copies of which are hereto attached: CB-DSLA Date of Form No. Title of Report Submission 101 Report on Required and Available Every Monday of the week Reserves Against Deposit Liabilities 102 Monthly Statement of Condition On or before the 10th of the month 301 Monthly Summary Report of On or before the 10th of the month Investments in Securities and Loans, Discounts and Advances 102-B Semi-Annual Report of Condition On or before the 30th day after the close of every semester 103 Semi-Annual Report of Earnings, On or before the 30th day after the Expenses, Surplus and Dividends close of every semester 104 Annual Statement of Condition On or before the 60th day after December 31 For the information and guidance of all concerned, specific instructions for the accomplishment of each report and the corresponding definitions of the terms as used therein are provided hereunder: LexLib Report on Required and Available Reserves Against Deposit Liabilities (CB-DSLA Report No . 101) must be accomplished weekly (including Saturdays, if the Association or any of its branches is open for business on Saturdays), in triplicate, the original and duplicate copies of which should be submitted/mailed to the Department of Savings and Loan Associations, Central Bank of the Philippines, Manila, not later than every Monday of the week following that for which the report is made. DEFINITION OF TERMS (1) Deposit Liabilities all savings and time deposits received by the Association. Savings deposit is subject to an indeterminate time at the will of the depositor, who may, therefore, withdraw the same at his pleasure, unless notice is reserved by the depository Savings and Loan Association. Time deposit is subject to a definite time of maturity and, therefore, cannot be withdrawn by the depositor until its maturity date arrives, unless the depository Association waives its right to the term (Section 18, Central Bank Circular No. 157). (2) Required Reserves Against Deposit Liabilities the amount required to be maintained as reserve against the total deposit (savings and time) liabilities of the Association which is equivalent to 6% thereof (Section 30 of Central Bank Circular No. 157). (3) Available Reserves the amount set aside and/or earmarked by the Association to cover the required reserves against deposit liabilities and may consist of the following: (a) Cash deposited with Central Bank and/or the Philippine National Bank for the account of the Central Bank (Section 32, Central Bank Circular No. 157) ; and (b) Holdings of eligible Philippine securities the aggregate value of which shall not exceed 80% of the required reserves. The term eligible Philippine securities refers to free or unencumbered bonds or securities held by the Association, the servicing or repayment of which is guaranteed by the Republic of the Philippines (Section 30 of Central Bank Circular No. 157). (4) Potential Reserves the total cash on hand; the total cash deposited in banks other than those deposited with the Central Bank of the Philippines or Philippine National Bank (for account of the Central Bank) which is not reflected as available reserves; and the amount of eligible Philippine securities which is not included or reflected as available reserves. II. Monthly Statement of Condition (CB-DSLA Form No . 102) together with schedule of checks and other cash items (DSLA Form No. 102-A), must be accomplished in triplicate, the original and duplicate copies of which should be submitted/mailed to the Department of Savings and Loan Associations, Central Bank of the Philippines, Manila, on or before the 10th of the month following that for which the report is made. DEFINITION OF TERMS (1) Cash on Hand the total of all currency, both notes and coins, in the possession of the Association. (2) Checks and Other Cash Items the total value of checks and other cash items such as treasury warrants, postal money orders, bond coupons, and the like, on hand or in the possession of the Association. (3) Cash in Banks the total amount deposited in banking institutions. (4) Loans, Discounts and Advances the total outstanding balances of loans or cash advances granted to persons or firms, and the amount or face value of the receivables of other persons or firms discounted with recourse by the Association. (5) Current Notes the outstanding balance of loans, discounts and advances not yet due and payable. (6) Past Due Notes the total balances of all loans, discounts, and advances not paid or still outstanding after the maturity date. (7) Items in Litigation all past due loans, discounts, and advances for the collection of which court actions have been instituted by the Association. (8) Investment in Securities the total amount of bonds and/or stocks acquired by the Association for the purpose of generating income. These bonds or stocks must be government bonds or stocks of non-speculative private enterprises. (9) Other Investments all other funds invested by the Association for the purpose of generating income not included in No. 8 above. (10) Due from Branches the outstanding balance of the Association's investments and/or advances for the operation of its branches. (11) Accounts Receivable the total of all accounts due to the Association not arising from loans nor from investments in bonds or securities, including advances to employees, receivables from customers arising from collections, collection charges and fees for miscellaneous services rendered by the Association. (12) Deferred Charges the balance of prepayments made by the Association on expenses applicable to future periods, such as organization expenses, insurance premiums, stationery and supplies, premium on fidelity bonds, etc. (13) Building or Office Premises the book value of the land and building which are owned and being used by the Association in its operation, less depreciation. (14) Leasehold Improvements the book value of improvements on properties held under lease by the Association, less depreciation. (15) Furniture, Fixture and Equipment the book value of furniture, fixtures and equipment which are owned and being used by the Association in its operation, less depreciation. (16) Assets Acquired in Settlement of Loans the book value of real or personal properties acquired through foreclosures or forfeitures. (17) Other Assets the net book value of assets other than those mentioned in Nos. 1 to 16. (18) Borrowings the outstanding balance of loans obtained by the Association from any public or private lending institutions, in accordance with Sec. 5(c) and (f) of Republic Act No. 3779 and Sec. 50 of Circular No. 157. (19) Due to Branches the outstanding balance of obligations of the Association to its branches. (20) Accounts Payable the outstanding balance of the Association's obligations other than those arising from receipt of deposits and direct borrowings. (21) Accrued Expenses the outstanding balances of expenses which are due but not yet paid by the Association. (22) Unearned Interest and Discounts the unrealized portion of all interests or discounts collected in advance in connection with the granting of loans and discounting of commercial papers. (23) Other Deferred Credits All other unearned income collected in advance aside from those mentioned in No. 22. (24) Other Liabilities all other obligations of the Association not otherwise mentioned from Nos. 18 to 22 hereof. (25) Capital Stock Paid-in the amount paid in by the stockholders on stocks subscribed. (26) Capital Contributions the amount contributed by members of a non-stock Association as their contribution to the capital of said Association which is not withdrawable unless such members resign or terminate their membership. (27) Withdrawable Shares Reserve the amount set aside out of profits realized or earned by the Association equivalent to at least 3% of the aggregate par value of the shares outstanding or total paid-in contribution of members. (Sec. 22, R.A. 3779 and Sec. 52, Central Bank Circular No. 157). (28) Surplus the aggregate amount of profits earned or realized by the Association which are retained in the business to strengthen its capital structure. (29) Surplus Reserves the portion of profits realized or earned by the Association, appropriated by the Board of Directors for specific purposes. Such surplus reserves are not available for dividend declarations. (30) Undivided Profits the accumulated amount of profits earned or realized by the Association not earmarked or appropriated for any specific purpose. III. Monthly Summary Report of Investment in Securities and Loans, Discounts and Advances (CB-DSLA Form No . 301) should be accomplished in triplicate, the original and duplicate copies of which should be submitted/mailed to the Department of Savings and Loan Associations, Central Bank of the Philippines, Manila, on or before the 10th day of the month following that for which the report is made. DEFINITION OF TERMS (1) Investment in Securities the total amount of bonds and/or stocks acquired by the Association for the purpose of generating income. Investment in securities should be classified according to issuer, i. e., government or private. Bonds issued by Government entities are classified as "Government." Bonds and/or stocks issued by non-speculative, privately-owned manufacturing and merchandising firms are classified as "Private." The column "Amount Acquired During the Month," covers the actual disbursements in payments for stocks and bonds. (2) Loans, Discounts and Advances the amount of loans, discounts, and advances granted by the Association. The column "Amount Granted During the Month," covers only the funds released during the month. The column "Outstanding at the End of the Month" covers only the total balances of loans, discounts, and advances. (3) Consumption Loans loans the proceeds of which are used to purchase goods or services for the immediate consumption of the borrowers, such as automobiles, household furniture and fixtures, electrical appliances, etc. They also include those granted to entities rendering personal services (except for capital investment purposes) such as hospitals, clinics, restaurants, hotels, recreational establishments, educational institutions and professional service establishments, and also those granted to consumers, finance companies, insurance companies, acceptance corporations, pawnshops and the like. (4) Real Estate Loans loans the proceeds of which are used to finance or partly finance the purchase of residential lots or the construction, reconstruction, repair and improvement of buildings. The use of real estate as security for the loan does not make it a real estate loan. (5) Industrial loans loans the proceeds of which are used to finance the purchase of industrial machinery and equipment or of raw materials or the payment of salaries or other current operating expenses of industrial establishments. The mining industry, cottage industry and other lift manufacturing firms engaged in food processing are included in this category. For example, sugar refining is industrial while sugar cane growing is agricultural. (6) Commercial Loans loans the proceeds of which are used to finance the distribution of finished goods, either in storage or in transit, to the final market, whether foreign or domestic. These loans must be distinguished from loans intended to finance the productive operations of an agricultural or industrial firm. "Commercial Loans" as a category is confined to the process of marketing or distribution, whether wholesale or retail, import or export. Thus, loans to finance the export of sugar are treated as commercial, not agricultural. (7) Agricultural Loans loans the proceeds of which are used to finance the purchase of agricultural machinery and equipment, fertilizers, seeds, work and breeding animals and/or to meet operating expenses, such as irrigation fees, wages of agricultural workers, and the like. (8) Other Loans loans the proceeds of which are used for purposes other than those mentioned in Nos. 3-7. Loans for capital investments of hospitals, clinics and the like should be classified under this account. IV. Semi-Annual Report of Earnings, Expenses, Surplus and Dividends (CB-DSLA Form No . 103) , showing all the transactions in the capital accounts during the six month period for which the report is made, should be accomplished in triplicate, the original and duplicate copies of which should be submitted/mailed to the Department of Savings and Loans Associations, Central Bank of the Philippines, Manila, within thirty (30) days after the close of every semester. Dividends declared must be reported to the Department of Savings and Loan Associations in writing within ten (10) days after the date of declaration. V. Semi-Annual Report of Condition (CB-DSLA Form No . 102-B ) should be accomplished in triplicate, and attached as supporting documents to Statement of Condition (CB-DSLA Form No. 102) for the months of June and December, the original and duplicate copies of which should be submitted/mailed within (30) days after June 30 and December 31, to the Department of Savings and Loan Associations, Central Bank of the Philippines, Manila. VI. Annual Statement of Condition (CB-DSLA Form No . 104) should be accomplished in triplicate, the original and duplicate copies of which should be submitted/mailed to the Department of Savings and Loan Associations, Central Bank of the Philippines, Manila, within sixty (60) days after December 31 of every year. In connection with the accomplishment of the above forms, the attention of all Savings and Loan Associations is invited to Section 29 of Republic Act No. 3779, which penalizes the willful making of a false statement to the Monetary Board or to any officer of the Central Bank of the Philippines so designated by the Monetary Board to implement the provisions of Republic Act No. 3779, with "a fine not to exceed fifteen thousand pesos, or by imprisonment for a term not to exceed three years, or by both, in the discretion of the court." FOR THE MONETARY BOARD: (SGD.) AMADO R. BRIAS Deputy Governor