Submission of Subscription Contract/Written Agreement
- Banks that have finalized agreements with TPIs covering the full capital deficiency must immediately submit the subscription contract or written agreement to the Bangko Sentral ng Pilipinas (BSP).
- Submission of this contract evidences TPI's commitment to infuse the needed funds.
Documentary Requirements and BSP Approval
- If the investment transaction requires BSP approval under Subsection X126.2b of the MORB, the bank must submit the following within 15 banking days from submitting the subscription contract or as otherwise prescribed:
- Bank’s formal request for BSP approval, signed by the President or equivalent officer.
- Board resolution of the TPI if the TPI is a corporation.
- Certified copy of the Escrow Agreement among the bank, TPI, and Escrow Agent.
- A certificate of escrow deposit equal to at least the proposed investment amount.
- Documentary requirements per Subsection X126.2b and BSP Circular No. 718.
- Other documentary requirements as may be required by BSP.
Compliance with BSP Circular No. 762
- Banks must also adhere to BSP Circular No. 762 dated July 25, 2012 regarding the treatment of stock subscription deposits as part of equity.
Non-Consideration of Investment Without Requirements
- Failure to comply with the documentary requirements results in non-recognition of the TPI investment for addressing capital deficiency.
- Mere submission of a Letter of Intent (LOI) to invest does not suffice to address capital deficiency.
Special Cases with PDIC Pending Applications
- For banks with pending applications under the PDIC Strengthening Program:
- The bank and TPI must submit a joint certification signed by authorized officers confirming the pending PDIC application.
- Acknowledgment receipt of the PDIC application must be submitted.
Consequences of Non-Submission
- Failure to submit required documents within the prescribed period allows BSP to recommend appropriate supervisory actions against the bank.
Authority and Implementation
- These guidelines are issued for guidance and immediate implementation by the BSP, under the authority of Deputy Governor Nestor A. Espenilla, Jr.