Increase in the Processing Fee on Applications for Certificate of Eligibility Pursuant to the Special Purpose Vehicle Act

October 12, 2006 SEC MEMORANDUM CIRCULAR NO. 11-06 SUBJECT : Increase in the Processing Fee on Applications for Certificate of Eligibility Pursuant to the Special Purpose Vehicle Act TO : All Concerned The Commission, in its meeting of October 12, 2006, decided to increase the processing fee on applications for Certificate of Eligibility (COE) covering non-performing assets 1 (NPAs) in accordance with Republic Act No. 9182 otherwise known as the Special Purpose Vehicle Act (as amended by R.A. No. 9343), 2 as follows: Old Rate New Rate For transfers to be made to 1/100 of 1% of the 0.50% of the transfer an SPV by financial transfer price but not price but not below institutions under SEC below P10,000.00 P20,000.00 jurisdiction For second leg transfers 3 1/100 of 1% of the 0.10% of the transfer (individual, third party) transfer price but not price but not below below P3,000.00 P5,000.00 The subject increase rationalizes the amount of processing fee with the necessary technical skills and time required for the evaluation of an application. SDaHEc This Circular shall take effect immediately. Issued this 12th day of October 2006, Mandaluyong City. (SGD.) FE B. BARIN Chairperson Footnotes 1. These consist of non-performing loans (NPL) and real and other properties owned or acquired (ROPOA). 2. For the purpose of allowing the establishment and registration of new special purpose vehicles and for other purposes. This act was approved by the Congress on April 24, 2006 and took effect on July 27, 2006. 3. These include (i) the transfer of the NPL by the SPV to a third party; (ii) the transfer of the ROPOA by the SPV to a third party; (iii) the dation in payment of the NPL by the borrower to the SPV; (iv) the dation in payment of the NPL by a third party, on behalf of the borrower, to the SPV; (v) the transfer of the NPL by the individual to a third party; and (vi) the transfer of the ROPOA by the individual to a third party.