38, GBL)
4.
Loans being contractual, the period of
payment may be subject to stipulation
by
the
parties.
In
the
case
of
amortization, the amortization schedule
has no fixed period as it depends on the
project to be financed such that if it was
capable of raising revenues, it should be
at least once a year with a grace period
of 3 years if the project to be financed is
not
that
profitable
which
could
be
deferred up to 5 years if the project was
not capable of raising revenues.
(Sec.
44, GBL)
5.
Loans granted to
DOSRI
:
a.
D
irector
b.
O
fficer
c.
S
tockholder, which should at least
1% (if below 1%
not anymore
covered)
d.
R
elated
I
nterests,
such
as
DOS s
spouses, their relatives within the
UST
G
OLDEN
N
OTES
2011
M
ERCANTILE
L
AW
T
EAM
:
A
DVISER
:
A
TTY
. A
MADO
E. T
AYAG
;
S
UBJECT
H
EAD
:
E
ARL
M. L
OUIE
M
ASACAYAN
;
A
SST
. S
UBJECT
H
EADS
:
K
IMVERLY
A. O
NG
& J
OANNA
M
AY
D.G. P
EÑADA
;
M
EMBERS
:
M
A
. E
LISA
J
ONALYN
A. B
ARQUEZ
, A
NGELI
R. C
ARPIO
,
A
NTONETTE
T. C
OMIA
, A
LBAN
R
OBERT
L
ORENZO
F. D
E
A
LBAN
, J
OEBEN
T. D
E
J
ESUS
, C
HRIS
J
ARK
A
CE
M. M
AÑO
, A
NNA
M
ARIE
P. O
BIETA
,
R
UBY
A
NNE
B. P
ASCUA
, F
LOR
A
NGELA
T. S
ABAUPAN
, G
IAN
F
RANCES
N
ICOLE
C. V
ILCHES
first
degree
whether
by
consanguinity
or
affinity,
partnership
whereby
DOS
is
a
partner or
a
corporation
where
DOS owns at least 20%.
Q:
What
are
excluded
from
such
loan
limitations?
A:
Non
risk loans, such as:
1.
Loans
secured by obligations
of the
Bangko
Sentral
ng
Pilipinas
or
the
Philippine Government
2.
Loans
fully
guaranteed
by
the
Government
3.
Loans
covered
by
assignment
of
deposits maintained in the lending bank
and held in the Philippines
4.
Loans,
credit
accommodations
and
acceptances under letters of credit to
the extent covered by margin deposits
5.
Other loans or credit accommodations
which the MB may specify as non
risk
items.
Q: What is joint and solidary signature (JSS)
practice?
A:
A common banking practice requiring as an
additional
security
for
a
loan
granted
to
a
corporation the joint and solidary signature of a
major stockholder or corporate officer
of the
borrowing corporation.
(Security Bank v. Cuenca,
G.R. No. 138544, Oct. 3, 2000)
Q: In case of DOSRI accounts, what are the
requirements that must be complied with?
A:
1.
Procedural requirement
Loan must be
approved by the majority of all the
directors
not
including
the
director
concerned.
CB
approval
is
not
necessary; however, there is a need to
inform them prior to the transaction.
Loan must be entered in the books of
the corporation.
(Sec. 36)
2.
Substantive requirement
Loan must not
exceed the
paid in contribution and
unencumbered deposits. (Not to exceed
15% of the portfolio or 100% of the net
worth, whichever is lower.)
(Sec. 36 [4])
Q: What is the effect of non
compliance with the
foregoing requirements?
A:
Violation of DOSRI is a crime and carries with it
penal sanction.
