BSP CIRCULAR LETTER

: It provides that availment by a bank against its overnight clearing line that remains unpaid on the next clearing day shall not be subject to liquidated damages of 3% per month.
: Paragraph c of Section 4, which contains the Implementing Guidelines for Circular No. 163, as amended, is deleted as per the BSP Circular Letter dated August 4, 2000.
: Section 4 is amended to include provisions about electronic notice of application constituting availment and immediate posting of the transaction to the bank's loan ledger by the DLC upon receipt of the notice.
: The electronic notice of application of the loan line to settle net clearing losses from the BSP Accounting Department constitutes an availment.
: The DLC must immediately post the transaction to the bank's loan ledger.
: Each availment shall be fully paid through an automatic debit to the demand deposit account of the bank with BSP on the next clearing day without need of demand.
: This Circular-Letter takes effect on April 28, 2000.
: The Circular-Letter was adopted by Armando L. Suratos, Officer-In-Charge.
: No, liquidated damages of 3% per month shall not be imposed on availment against overnight clearing line that remains unpaid on the next clearing day.
: It ensures immediate settlement of the loan availment without requiring a separate demand, streamlining the payment process.