Mr. John Y. Cocuaco

November 23, 1983 Mr. John Y. Cocuaco Assistant General Manager National Development Company NDC Bldg., 377 Buendia Ave. Ext. Makati, Metro Manila Sir : This refers to your letter dated August 8, 1983 requesting for approval of your proposal to include NDC Bonds and National Development Fund (NDF) Certificates as eligible reserve investments of corporations offering pre-need plans to the general public. Relative thereto, please be advised that the above-mentioned bonds and certificates fall within the classification of "government securities or bonds, and such other evidences of indebtedness or obligations the servicing and repayment of which are fully guaranteed by the Republic of the Philippines," which are eligible as investment reserves under Section 6 (2) (b) * of the proposed SEC Revised Rules and Registration and Sale of Pre-need Plans, Pension Plans, Life Plans and Similar Contracts and Investments. Although still subject to the approval of the Minister of Finance, said Revised Rules are being implemented by this Commission as a matter of policy on cases wherein the present Rules are silent. We, therefore, interpose no objection to the use of NDC bonds and NDF certificates as reserve investments on the Trust Fund of pre-need plan companies. Very truly yours, (SGD.) GONZALO T. SANTOS, JR. Associate Commissioner * Copied verbatim from documents obtained directly from the Securities and Exchange Commission .