§§ 4102P - 4151P 96.12.31 e. Pawn ticket is the pawnbroker's receipt for a pawn. f. Property shall include only such personal property as may actually be delivered to the control and possession of the pawnee. g. Voting stock is that portion of the authorized capital which is subscribed and entitled to vote. h. Vital records shall consist of the Loans Extended/Paid Registers, General Ledger/Journal covering the current and at least the preceding two (2) years of operations, unused accountable forms and permanent pawnshop records, e.g., articles of incorporation/co-partnership, stock certificates, etc. i. Bulky pawns shall refer to household appliances, office machines and the like, which occupy considerable amount of space, i.e., measuring at least 1.5 x 1.5 x 0.5 feet. j. Premises shall refer to the area where the pawnshop conducts its business and maintains office. It includes office or storage spaces maintained and/or used by the pawnshop which are adjacent to the pawnshop's location. Secs. 4103P - 4105P (Reserved) B. CAPITALIZATION Sec. 4106P Capital of Pawnshops Pawnshops shall have a minimum paid-in capital of 100,000. Paid-in capital shall mean cash and other properties, including real estate and improvements thereon: Provided, That such properties are necessary for the conduct of the pawnshop business. Properties forming part of capital in accordance with the preceding paragraph may be valued at acquisition cost less depreciation or at any other value not exceeding the appraised value as fixed by an independent appraiser, at the option of the contributor, partner or proprietor. The value of properties forming part of capital in accordance with the immediately preceding two paragraphs shall not exceed twenty-five percent (25%) of paid-in capital and surplus: Provided, however, That for pawnshops existing as at 29 January 1973 whose value of properties exceeds the prescribed ratio, such percentage may be retained or reduced but shall not be increased thereafter. Should the ratio, on the other hand, fall below the prescribed level, it may be increased but not beyond twenty-five percent (25%). Secs. 4107P - 4110P (Reserved) C. - F. (RESERVED) Secs. 4111P - 4140P (Reserved) G. DIRECTORS, OFFICERS AND EMPLOYEES Sec. 4141P Bonding of Officers and Employees. Accountable officers and employees, especially those who have access to pawned articles, of pawnshops shall be required to post bonds of reputable companies accredited by the Insurance Commissioner. Secs. 4142P - 4150P (Reserved) H. BRANCHES AND OTHER OFFICES Sec. 4151P Establishment of Branches No pawnshop shall open, maintain or operate a branch office without first applying for and obtaining from the BSP, through the appropriate supervising and examining department, authority to operate such branch which shall be processed in accordance with the following guidelines. P Regulations Manual of Regulations for Non-Bank Financial Institutions § 4151P.1 Definition of term. As used in these rules the term branch office shall include any place of business outside the main office of a pawnshop, where pawnshop operations or transactions or any phase thereof are conducted by said pawnshop under the control and supervision of a head or main office. § 4151P.2 Operations and functions The operations/transactions of a branch office shall likewise be governed by the provisions of P.D. No. 114 governing operations/transactions of a head office, as well as by other pertinent laws, BSP rules and regulations. The primary purpose of branching shall be to provide an additional source of credit to small borrowers left unserved by the banking and other financial institutions. § 4151P.3 Basis for establishment Branch offices shall be allowed on the basis of the head office's ability to conduct operations, as well as correspondent arrangements. The BSP department concerned shall not process an application for branching of a pawnshop which has an approved but unopened branch. § 4151P.4 Capital requirement. Upon compliance with the minimum paid-in capital of P100,000, permission to open a maximum of one (1) branch may be granted, subject to the provisions of the rules on branching. Additional paid-in capital of P100,000 shall be required for each additional branch. § 4151P.5 Documentary requirements The following documents shall be filed with the appropriate supervising and examining department of the BSP in connection with an application to operate a branch a. Bank certification on paid-in capital deposit; §§ 4151P.1 - 4160P 96.12.31 b. Bio-data of the proposed manager and accountable employees; c. Information on branch location, facilities (such as vault), bonding and insurance; d. Certified true copy of the board resolution authorizing the establishment of the branch (in case of corporation); and e. Business and/or economic justification (including data) for the establishment of the branch, etc. § 4151P.6 Date of opening for business. A branch office shall open for business within six (6) months from receipt of its authority to operate said branch, otherwise, the authority is automatically revoked. Secs. 4152P-4155P (Reserved) I. BUSINESS DAYS AND HOURS Sec. 4156P Business Days and Hours Pawnshops shall transact business at a minimum of five (5) days a week, for a minimum of six (6) hours a day, both to be selected by them. They may, at their discretion, remain open beyond the above requirement for as long as they deem it necessary. The business hours and business days shall be posted conspicuously at all times at the door of the pawnshop. Exemption from the above requirement shall be granted to pawnshops in troubled areas after due evaluation of their requests. Special public holidays proclaimed for local government shall be regular working days. Secs. 4157P-4160P (Reserved) J. RECORDS AND REPORTS Manual of Regulations for Non-Bank Financial Institutions P Regulations §§ 4161P - 4162P.2 96.12.31 Sec. 4161P Records. The accounting period of all pawnshops shall be on the calendar year basis. The accounting records of pawnshops shall consist of records of original entry and books of final entry. The records of original entry shall consist of pawn tickets, official receipts, vouchers and other supporting documents. The books of final entry shall consist of the general ledger, subsidiary ledgers and registers of loans extended and loans paid. Pawnshops may use any form of register: Provided, That (a) it contains spaces and columns adequate to substantially reflect the data required by the BSP, (b) said register is with a permanent binding, and (c) no register with loose leaves or detachable pages shall be allowed. The Chart of Accounts and Description of Loan Registers of Pawnshops provided in Appendix P-1 shall be followed. No pawnbroker or other persons shall alter or erase any entry made in the registers of a pawnshop. No pawnshop shall destroy or dispose of any record, ledger, book, or document for at least three (3) years from the date thereof. § 4161P.1 Uniform System of Accounts. Pawnshops shall strictly adopt/ implement the Uniform System of Accounts prescribed for pawnshops in the recording of daily transactions including reportorial requirements. § 4161P.2 Adoption of Statements of Financial Accounting Standards Pawnshops shall adopt the Statements of Financial Accounting Standards (SFAS) in their financial statements and reports to the BSP. However, in cases where there are differences between BSP regulations and SFAS, as when more than one (1) option are allowed or certain maximum or minimum limits are prescribed by the SFAS, the option or limit prescribed by BSP regulations shall be adopted by pawnshops. For purposes hereof, the SFAS shall refer to the issuances of the Accounting Standards Council (ASC) and approved by the Professional Regulation Commission (PRC). Sec. 4162P Reports. Pawnshops shall submit to the appropriate supervising and examining department of the BSP the reports listed in Appendix P-2 in the forms as may be prescribed by the Deputy Governor, Supervision and Examination Sector, BSP. Any change in, or amendment to, the articles of incorporation/co-partnership, bylaws or material documents required to be submitted to the BSP shall be reported by submitting copies of the amended articles of incorporation, by-laws or material document to the appropriate supervising and examining department of the BSP within fifteen (15) days following such change. § 4162P.1 Categories of and signatories to reports. Reports required to be submitted to the BSP are classified into Categories A-1, A-2, A-3 and B reports as indicated in the list of reports required to be submitted to the BSP in Appendix P-2. Appendix P-3 prescribes the signatories for each report category and the requirements on signatory authorization. Reports submitted in computer media shall be subject to the same requirements. A report submitted to the BSP under the signature of an officer who is not authorized in accordance with the requirements in this Subsection shall be considered as not having submitted. § 4162P.2 Manner of filing. The submission of the reports shall be effected by filing them personally with the appropriate supervising and examining department of the P Regulations Manual of Regulations for Non-Bank Financial Institutions Manual of Regulations for Non-Bank Financial Institutions BSP or with the BSP Regional Offices/Units, or by sending them by registered mail or special delivery through private couriers, unless otherwise specified in the circular or memorandum of the BSP. § 4162P.3 Sanctions a. Definition of terms. For purposes of these rules, the following definitions shall apply: (1) Report shall refer to any report or statement required of a pawnshop to be submitted to the BSP periodically or within a specified period. (2) Faulty report shall refer to an inaccurate/improperly accomplished report. (3) Willful delay or default in the submission of reports shall refer to the failure of a pawnshop to submit a report on time. Failure to submit a report on time due to fortuitous events, such as fire and other natural calamities and public disorders, including strike or lockout affecting a pawnshop as defined in the Labor Code or a national emergency affecting operations of pawnshops, shall not be considered as willful delay. (4) False Statement shall refer to any untruthful data or information or falsehoods made in a report to the BSP or its authorized agents, with intent to deceive or mislead. Any false statement which tends to favor the pawnshop submitting the report shall be prima facie evidence of intent to deceive or mislead. (5) Repeated violation shall mean the commission of the same offense for at least two (2) times. (6) Persistent violation shall mean the commission of the same offense for at least three (3) times. (7) Offense shall refer to submission of faulty report, willful delay in submission of reports, or making of false statements in reports. Delay or default shall start to run on the day following the last day required for the submission of reports. However, should the last day of filing fall on a non-working day in the locality where the reporting pawnshop is situated, delay or default shall start to run on the day following the next working day. For the purpose of establishing delay or default, the date of acknowledgment by the appropriate supervising and examining department of the BSP or the BSP Regional Offices/Units appearing on the copies of such reports filed or submitted or the date of mailing postmarked on the envelope or the date of registry or special delivery receipt, as the case may be, shall be considered as the date of filing. P Regulations Any false statement made in a previous report which was not immediately known but was discovered only in later reports shall constitute only one (1) violation. The penalty shall operate on the sixth working day counted from receipt of notice of submission of a false statement from the BSP or its authorized agents until a correct statement is submitted. e. Manner of collection and payment of fines. A pawnshop shall be billed by the appropriate supervising and examining department of the BSP. The pawnshop shall thereupon remit the amount of the fine to the BSP thru the appropriate supervising and examining department. Failure of a pawnshop to effect the settlement of the full amount of the fine within a period of fifteen (15) days from receipt of the bill shall subject it to other administrative sanctions and/or to the penal provisions of P.D. No. 114. f. Appeal to the Monetary Board. A pawnshop may appeal to the Monetary Board a ruling of the appropriate supervising and examining department of the BSP imposing any penalty prescribed herein. g. Payment of the penalties by installments (1) The head of the appropriate supervising and examining department may approve requests for payment of penalties by installments: Provided, That the pawnshop's cash position is not sufficient to pay the penalty in full, as determined by that department based on the pawnshop's latest statement of condition duly certified by its president/manager/proprietor/managing partner, as the case may be. The request shall be made in writing. (2) The maximum number of installment payments shall be in accordance with the following schedule: Amount of Penalty P500 and below P501-750 P751-1,000 1,001 - 2,000 2,001-5,000 P5,001 and above No. of Installments Two (2) equal monthly installments Three (3) equal monthly installments Four (4) equal monthly installments Six (6) equal monthly installments Eight (8) equal monthly installments Ten (10) equal monthly installments Default in payment of any installment shall render the unpaid amount payable in full. P Regulations Manual of Regulations for Non-Bank Financial Institutions |