CBP Memorandum

November 27, 1990 CBP MEMORANDUM TO : All Commercial Banks, Land Bank of the Philippines and the Philippine National Bank In its Resolution No 1216 dated November 16, 1990, the Monetary Board decided that before any bank may open a Letter of Credit (L/C) denominated in foreign currency, the following steps must be observed: 1. The importer must submit an application to open the L/C which application must be supported, as a minimum requirement, by the following: a. Resolution of the Board of Directors where the importer is a corporation authorizing the opening of the L/C or opening of an L/C line together with the authorized signatory/ies for the opening of the L/C. b. Business Registration Single Proprietorship Certified true copy of the Certificate of Registration issued by the Bureau of Domestic Trade Partnership Certified true copy each of the By-Laws, the Articles of Incorporation and the Certificate of Registration with the Securities and Exchange Commission c. Business Registration Certificate issued by the Bureau of Internal Revenue and xerox copy of the latest income tax return, duly stamped received by the Bureau of Internal Revenue. 2. Credit checking should be made by the bank on the importer even if there is no credit facility applied for the client (i.e., cash L/C on L/C with 100% margin deposit). Such credit checking shall include, as a minimum, actual verification of the business operation of the client, which business must be relevant to the goods to be imported, location of business operation and other business activities of the importer. The results of such credit checking must be in writing and duly signed by the investigator. Any violation of the provisions of this Memorandum shall subject the bank and/or the responsible officers to the sanctions provided under Sections 34 and 34-A of R.A. No. 265, as amended. This Memorandum shall take effect immediately. FOR THE MONETARY BOARD: (SGD.) JOSE L. CUISIA, JR. Governor