Amendment of Regulations on (a) Real Estate/Chattel Transaction Between the Bank and its Employee(s), Director(s), Officer(s), Stockholder(s) or Related Interest(s), and (b) Lease or Sublease to Third Persons of any Portion/s of its Office Premises

CIRCULAR NO.  525 Series of 2006

Subject:   Amendment of Regulations on (a) Real Estate/Chattel Transaction Between the Bank and its Employee(s), Director(s), Officer(s), Stockholder(s) or Related Interest(s), and (b) Lease or Sublease to Third Persons of any Portion/s of its Office Premises

Pursuant to Monetary Board Resolution No. 346 dated 23 March 2006, the provisions of the Manual of Regulations for Banks (MORB) are hereby amended, as follows:

Section 1.  The provisions of Subsection X162.5 of the MORB are hereby amended to read as follows:

Ҥ X162.5 Report on real estate/chattel transactions. Banks shall within ten (10) banking days from approval of the transaction:

a. Report to the appropriate supervising and examining department of the BSP, any real estate/chattel transaction (such as, but not limited to, rentals or leases, purchases and sales, of foreclosed assets) between the bank and its director(s), officer(s), employee(s), or between the bank and its stockholder(s) or their related interest(s), as defined under Item “c” and “e”, respectively, of Subsection X326.1; and

b. Certify to the BSP that such transaction has been thoroughly reviewed and verified as having been entered into in the best interest of the bank.

Section 2.  Subsection X606.4 of the MORB is hereby deleted.

Section 3. Effectivity.  This Circular shall take effect fifteen (15) days after its publication either in the Official Gazette or in a newspaper of general circulation.

FOR THE MONETARY BOARD:

NESTOR A. ESPENILLA, JR. Officer-in-Charge