§§ 44270 - 44990 96.12.31

institutions where the resulting entity is an entirely new one, it shall secure from the Monetary Board an authority to engage in trust and other fiduciary business or in investment management activities before it may engage in such business.

Sec. 4428Q Receivership. Whenever a receiver is appointed by the Monetary Board for an institution that is authorized to engage in trust and other fiduciary business or in investment management activities, the receiver shall, pursuant to the instructions of the Monetary Board, proceed to close the trust, other fiduciary and investment management accounts promptly and/or transfer all other accounts to substitute trustees, fiduciaries or investment managers acceptable to the trustors, beneficiaries, principals or other parties in interest: Provided, That where the trustee, fiduciary or investment manager is acting as such under appointment by a court, the receiver shall proceed pursuant to the instructions of said court.

Sec. 4429Q Surrender of Trust or Investment Management License. Any NBFI which has been authorized to engage in trust and other fiduciary business or in investment management activities and which intends to surrender said authority shall file with the BSP

a certified copy of the resolution of its board of directors manifesting such intention. The appropriate supervising and examining department of the BSP shall then conduct an examination of the institution's trust, other fiduciary business and investment management activities. If the institution is found to have satisfactorily discharged its duties and responsibilities as trustee, fiduciary or investment manager, and has provided for the orderly closure or transfer of its trust, fiduciary or investment management accounts, the Monetary Board, on the basis of the recommendation of the examining department, shall order the withdrawal of the institution's authority to engage in trust and other fiduciary management activities.

Secs. 4430Q - 4498Q (Reserved)

Sec. 4499Q Sanctions. Any violation of the provisions of this Part shall be subject to Sections 36 and 37 of R. A. No. 7653, without prejudice to the imposition of other sanctions as the Monetary Board may consider warranted under the circumstances that may include the suspension or revocation of an institution's authority to engage in trust and other fiduciary business or in investment management activities, and such other sanctions as may be provided by law.

Q Regulations

§§ 45010 - 45050 96.12.31

Section 4501Q Authority; Coverage. With prior approval of the Monetary Board, and subject to the provisions of Article III, Chapter IV of R.A. No. 7653 and Section 7(13) of P.D. No. 129, as amended, an investment house may engage in foreign exchange operations which shall be limited to the servicing of project or program requirements of the following enterprises:

a. BSP-certified export-oriented firms; b. Board of Investments-registered export-oriented firms; and

C. Construction or service firms with overseas contracts approved by the Department of Labor and Employment.

Sec. 4502Q Specific Foreign Exchange Activities. The specific foreign exchange operations which investment houses may undertake in connection with the preceding Section are:

a.

Arranging or contracting of foreign loans for the account of the client firm, or contracting of foreign loans for the account of the investment house for relending to the client firm, subject to pertinent BSP rules and regulations;

b. Providing import- and exportrelated services to said firms such as letters of credit and other acceptable modes of payment, and the discounting of export drafts: Provided, That the total amount of foreign exchange transactions investment houses may deal in shall not exceed the amount of the financing arranged or provided by the investment house which involves the importation and exportation of related goods and services: Provided, further, That the

amount of letters of credit outstanding of an investment house shall not exceed, at any given time, twice its net worth, except as may otherwise be specifically authorized by the Monetary Board;

c. Holding foreign currency balances with foreign correspondents in connection with export-related services but in no case for speculative purposes;

d. Entering into forward foreign exchange contracts with the BSP in connection with the foregoing activities; and/

or

e. Such other related foreign exchange activities as may be approved by the Monetary Board.

Sec. 4503Q Separate Department. Any investment house that may be authorized to engage in foreign exchange operations shall set up a separate department/unit to handle such operations.

Sec. 4504Q Applicability of Pertinent Bangko Sentral Rules. The foreign exchange operations of an investment house are subject to all applicable BSP rules and regulations on foreign exchange operations, including modifications thereof, considering the special nature of investment house operations, and the sanctions in connection therewith.

Sec. 4505Q Aggregate Ceiling on Issuance of Guarantees. Total standby letters of credit, foreign and domestic, including guarantees, the nature of which requires the guarantor to assume the liabilities/obligations of third parties in case of their inability to pay, that

Q Regulations