Guidelines on the Submission of the Disclosure Statement on SPV Transactions

MEMORANDUM NO. M-2008-005

To : ALL BANKS AND NON-BANK FINANCIAL INSTITUTIONS   WITH QUASI-BANKING FUNCTIONS (NBQBs)

Subject : Guidelines on the Submission of the Disclosure  Statement on SPV Transactions

The following set out the guidelines for the disclosure of information on the sale of non-performing assets (NPAs) to special purpose vehicles (SPVs) and to qualified individuals for housing under "The Special Purpose Vehicle (SPV) Act of 2002” pursuant to Memorandum dated 26 September 2003, as amended by Memoranda dated 16 February 2004 and 2 December 2005, respectively:

(a) Submission of Disclosure Statement

The disclosure statement (Annex A), attached as Annex 2 of Memorandum dated 2 December 2005, shall be submitted on a quarterly basis, within 15 banking days after the end of the reference quarter, to the Supervisory Data Center.  The said disclosure statement shall be submitted in hard copy duly notarized and signed by the authorized official of the reporting bank.

(b) Publication/Posting Requirements

The following additional information shall be incorporated in the prescribed form for the Published/Posted Balance Sheet (BS) provided in Circular No. 576 dated 8 August 2007 (Annex B):

“(m) Deferred charges not yet written down; and

(n) Unbooked allowance for credit losses on financial instruments received.”

The disclosure statement (Annex A) and the amended prescribed form for the published/posted BS (Annex B) shall be used and submitted starting with the quarter-end March 2008.

For compliance.

NESTOR A. ESPENILLA, JR. Deputy Governor