Trustee as participant in Common Trust Funds

MEMORANDUM Series of 2002

TO    :  All Banks and Other Financial Intermediaries Performing Trust, Other Fiduciary Business and Investment Management Activities

Pursuant to Monetary Board Resolution No. 212 dated February 14, 2002, Subsections X410.4/4410Q.4 of the Manual of Regulations for Banks/Manual of Regulations for Non-Bank Financial Institutions is hereby amended to read as follows:

Subsection X410.4/4410Q.4   Trustee as participant in common trust funds.  A trustee administering a CTF shall not have any interest in such fund other that in its capacity as trustee of the CTF nor grant any loan on the security of a participation in such fund:  Provided, however, That a trustee which administers funds representing employee benefit plans under trust or investment management may invest funds in the CTF; Provided, further, That in the case of employee benefit plans under trust belonging to employees of entities other that that of the trustee, the trustee may invest such funds in its own CTF only on a temporary basis in accordance with Subsection X409.5/4409Q.5

FOR THE MONETARY BOARD:

RAFAEL B. BUENAVENTURA Governor