§ 41515.3 Permit to operate. Actual operation shall commence only after a permit to operate has been issued by the BSP.

Secs. 41525 - 4155S (Reserved)

1. BUSINESS DAYS AND HOURS

Sec. 41565 Business Days and Hours NSSLAs may adopt such business days and hours as may be convenient for them: Provided, That the BSP shall be informed in writing of such business days and hours adopted upon start of operations and whenever there is a change thereof: Provided, further, That in the case of an NSSLA operating in a government office or private firm, its business hours shall have the prior approval of the head of the office or of the firm where such NSSLA operates.

NSSLAs shall not transact business on legal holidays, but special public holidays proclaimed for local governments may be regular business days.

NSSLAs shall be open for business during business hours and days as reported to the BSP except when extraordinary instances caused by unforeseen, unavoidable event directly affecting the association's ability to open for business.

NSSLAs shall post conspicuously at all times in their places of business their schedule of regular business hours and days.

Secs. 41575 - 4160S (Reserved)

J. RECORDS AND REPORTS

Sec. 4161S Records. NSSLAs shall have a true and accurate account, record or statement of their daily transactions. The making of any false entry or the willful omission of entries relevant to any transaction is a ground for the Monetary Board for the

§§ 41515.3 - 4162S 96.12.31

imposition of administrative sanctions under Section 37 of R.A. No. 7653, without prejudice to the criminal liability of the director or officer responsible therefor under Sections 35 and 36 of R.A. No. 7653 and/or the applicable provisions of the Revised Penal Code. Records shall be up-to-date and shall contain sufficient detail so that an audit trail is established.

§ 41615.1 Uniform System of Accounts. NSSLAs shall strictly adopt/ implement the Uniform System of Accounts prescribed for NSSLAs in the recording of daily transactions including reportorial and publication requirements.

The voucher system, the ticket system or such other accounting systems acceptable to the BSP shall be adopted for use by NSSLAs.

§ 41615.2 Adoption of Statements of Financial Accounting Standards. NSSLAS 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

NSSLAS.

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. 41625 Reports. NSSLAs shall submit to the appropriate supervising and examining department of the BSP the reports listed in Appendix S-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, by-laws or material documents required to be submitted to the

S Regulations §§ 41625 - 4162S.3 96.12.31

BSP shall be reported by submitting copies of the amended articles of incorporation, bylaws or material documents to the appropriate supervising and examining department of the BSP within fifteen (15) days following such change.

§ 41625.1 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 S-2.

Appendix S-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 been submitted.

§ 41625.2 Manner of filing. The submission of the reports shall be effected by filing them personally with the appropriate department of the 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.

§ 41625.3 Sanctions for willful delay in submission of reports/refusal to permit examination

a. Definition of terms. For purposes of this Subsection, the following definitions shall apply:

(1) Report shall refer to any report or statement required of an NSSLA to be submitted to the BSP periodically or within a specified period.

(2) Willful delay in the submission of reports shall refer to the failure of a NSSLA 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 the NSSLA as defined in the Labor Code or a national emergency affecting the operations of NSSLAs, shall not be considered as willful delay.

(3) Examination shall include, but need not be limited to, the verification, review, audit, investigation and inspection of the books and records, business affairs, administration and financial condition of any NSSLA including the reproduction of its records, as well as the taking possession of the books and records and keeping them under the BSP's custody after giving proper receipt therefor. It shall also include the interview of the directors and personnel of the NSSLA including its Electronic Data Processing (EDP) servicer. Books and records shall include, but not limited to, data and information stored in magnetic tapes, disks, printouts, log-books and manuals kept and maintained by the NSSLA or the EDP servicer, necessary and incidental to the use of EDP systems by the NSSLA.

(4) Refusal to permit examination shall mean any act or omission which impedes, delays, or obstructs the duly authorized BSP officer/examiner/employee from conducting an examination, including the act of refusing to accept or honor a letter of authority to examine presented by any officer/examiner/employee of the BSP.

b. Fines for willful delay in submission of reports. NSSLAs incurring willful delay in the submission of required reports shall pay a fine in accordance with the following schedule:

S Regulations

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 NSSLA 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/the date of registry or special delivery receipt, as the case may be, shall be considered as the date of filing.

Delayed schedules or attachments and amendments shall be considered late reporting subject to the above penalties.

C. Fines for refusal to permit examination

(1) Amount of fine. Any NSSLA which shall willfully refuse to permit examination shall pay a fine of P3,000 daily from the day of refusal and for as long as such refusal lasts.

(2) Procedures in imposing the fine. (a) The BSP officer/examiner/ employee shall report the refusal of the NSSLA to permit examination to the head of the appropriate supervising and examining department, who shall forthwith make a written demand upon the NSSLA concerned for such examination. If the NSSLA continues to refuse said examination without any satisfactory explanation therefor, the BSP officer/examiner/employee concerned shall submit a report to that effect to the said department head.

(b) The fine shall be imposed starting on the day following the receipt by the said department of the written report submitted by the BSP officer/examiner/employee

§§ 41625.3 - 4181S 96.12.31

concerned regarding the continued refusal of the NSSLA to permit the desired examination.

d. Manner of payment or collection of fines. The regulations embodied in Sec. 4601S shall be observed in the collection of the fines from NSSLAs.

e. Other penalties. The imposition of the penalties shall be without prejudice to the imposition of the other administrative sanctions and to the filing of a criminal case as provided for in other provisions of law. Appeal to the Monetary Board. NSSLAs may appeal to the Monetary Board a ruling of the appropriate supervising and examining department of the BSP imposing a fine.

f.

Secs. 4163S - 4170S (Reserved)

K. INTERNAL CONTROL

Sec. 4171S External Auditor for NSSLAS NSSLAs, except those with total resources of less than P500,000, shall engage the services of an independent certified public accountant to audit their books of accounts at least once a year.

Secs. 4172 - 4180S (Reserved)

L. MISCELLANEOUS PROVISIONS

Sec. 41815 Publication Requirements NSSLAs with total resources of P500,000 or more shall, within 120 days after the close of their fiscal year, furnish the Monetary Board, through the appropriate supervising and examining department of the BSP, and mail to each of their members, a copy of their audited financial statements provided for in Sec. 41715 showing, in such form and detail

S Regulations

§§ 41815 - 4199S

۱۱

96.12.31

as the Monetary Board may require, the amount and character of the assets and liabilities of the NSSLAs at the end of the preceding fiscal year.

In the case of NSSLAs with resources below P500,000, they shall furnish each member and the Monetary Board, through the appropriate supervising and examining department of the BSP, with a copy of their unaudited financial statements within sixty (60) days from the end of the fiscal year.

NSSLAs may, in lieu of mailing, publish such financial statement in any newspaper of general circulation in the city or town where their principal office is located. The Monetary Board may, in addition to the foregoing, require the publication of such other information as it shall deem necessary for the protection of the members of the NSSLAS.

Sec. 4182S Business Name. NSSLAS organized or operating under R.A. No. 3779, as amended, and licensed by the BSP shall include in their names the term "Savings and Loan Association." Such NSSLAs shall display in a conspicuous place at their business offices a sign including, among other things, the following words: "Authorized by the Bangko Sentral ng Pilipinas."

Sec. 4183S Prohibitions

a.

No

person, association, partnership or corporation shall do business or hold itself out as doing business as an NSSLA, or shall use the term "Savings and Loan Association" or any other title or name tending to give the public impression that it is engaged in the operations and activities of an NSSLA unless so authorized under R.A. No. 3779, as amended, and these regulations.

b. The use by an association of any other name or title or combination of names and titles or any other deviation from the requirements of this Section shall not be authorized except upon prior approval of the Monetary Board.

C. NSSLAs shall not issue or publish, or cause or permit to be issued or published, any advertisement that it is doing or permitted to do business which is prohibited by law to an NSSLA.

d. NO NSSLA shall advertise or represent itself to its members or to the public as a bank or as a trust company.

Secs. 4184S - 4198S (Reserved)

Sec. 4199S General Provision on Sanctions Any violation of the provisions of this Part shall be subject to Sections 36 and 37 of R.A. No. 7653.

S Regulations

§§ 42015 - 4240S 96.12.31

A. DEMAND DEPOSITS

Section 4201S Checking Accounts. NSSLAS shall not have or carry upon their books for any person any demand, commercial or checking account, or any credit to be withdrawn upon the presentation of any negotiable check or draft.

Secs. 4202S-42055 (Reserved)

B. SAVINGS DEPOSITS

Sec. 4206S Definition. Savings deposits are deposits evidenced by a passbook consisting of funds deposited to the credit of one (1) or more individuals with respect to which the depositor may withdraw at any time, unless prior notice in writing of an intended withdrawal is required by the NSSLA.

Sec. 42075 Minimum Deposit. Savings deposits with NSSLAs may be opened with a minimum deposit of P100.

Sec. 4208S Withdrawal. Withdrawal from a savings deposit shall be made by presenting to the NSSLA a duly accomplished withdrawal slip together with the depositor's passbook.

NSSLAs shall reserve the right to require the depositor to give prior written notice of withdrawal of not more than thirty (30) days.

An association may limit the number of withdrawals that a depositor may make: Provided, That the number of withdrawals allowed shall not be less than three (3) a month. A service charge of twenty pesos (P20) may be charged by the association for every withdrawal made in excess of the maximum number allowed in any one (1) month.

Secs. 42095 - 4215S (Reserved)

C. (RESERVED)

Secs. 42165 - 4220S (Reserved)

D. TIME DEPOSITS

Sec. 42215 Definition. Time deposits are deposits evidenced by a negotiable or nonnegotiable instrument which provides on its face that the amount of such deposit is payable on a fixed date or at the expiration of a certain specified time.

Sec. 42225 Minimum Size and Term of Time Deposits. The minimum size and term of time deposits shall be as follows:

a. Term No time deposit shall be accepted for a term of less than thirty (30) days.

b. Minimum size NSSLAs shall not require a minimum amount of time deposit greater than 1,000.

Sec. 42235 Withdrawal of Time Deposits The withdrawal of a time deposit can be made only by presentation of the certificate of time deposit.

Sec. 42245 Certificates of Time Deposit Certificates of time deposit shall be governed by the rules under Subsec. 42615.5.

Secs. 42255 - 4230S (Reserved)

E.-F. (RESERVED)

Secs. 42315 - 4240S (Reserved)

S Regulations