Guidelines on the use of scripless securities

MEMORANDUM Series of 1997

TO:  ALL BANKS AND OTHER FINANCIAL INTERMEDIARIES PERFORMING TRUST, OTHER FIDUCIARY BUSINESS AND INVESTMENT MANAGEMENT ACTIVITIES

The Monetary Board, in its Resolution No. 1310 dated October 8, 1997, approved the attached guidelines on the use of scripless securities as security deposit for the faithful performance of trust duties pursuant to the provisions of Section 65 of the General Banking Act (R.A. No. 337, as amended) and Subsection _405.1 to _405.4 of the Manual of Regulations for Banks and Other Financial Intermediaries (MOR).

The attached guidelines shall also be applicable to banks and entities other than banks which are authorized by the Monetary Board to engage in investment management activities under Section _414 of the MOR and which are required to deposit securities for the faithful performance of investment management activities under Subsections _415.1 to _415.4 of the MOR.

The guidelines shall be effective immediately.

GABRIEL C. SINGSON Governor