BSP CIRCULAR NO. 380

: It is the balance of the selling price of assets owned and/or acquired under a plan of settlement where title to the assets is transferred only to the buyer upon full payment of the agreed selling price.
: It must meet all of the requirements/conditions enumerated in the Circular.
: At least twenty percent (20%) of the agreed selling price as down-payment.
: The installment payments on the principal must have already amounted to at least twenty percent (20%) of the agreed selling price.
: Payment of the principal must be in equal installments or in diminishing amounts, with maximum intervals of one (1) year.
: Any grace period on the payment of principal shall not be more than two (2) years.
: There must be no installment payment in arrear either on principal or interest.
: The account is automatically classified as “Substandard” and considered non-performing.
: Non-payment of any amortization due.
: A satisfactory track record of at least three (3) consecutive payments of the required amortization of principal and/or interest.
: The track record may be of payments of the required amortization of principal and/or interest.
: Monetary Board Resolution No. 329 dated 6 March 2003.
: It took effect immediately.
: Secs. X612 for banks and 4628Q for non-bank financial institutions.
: Because title to the assets is transferred only to the buyer upon full payment of the agreed selling price.