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c) Alternative compliance for either or both MSEs or/and MEs
(1) Paid subscription/purchase of liability instruments as may be
offered by the SB Corporation; or
(2) Paid subscription of preferred shares of stock of the SB
Corporation; or
(3) Loans from whatever sources granted to BMBEs as provided
under Subsection X365.5.
Subsection X342.4. Ineligible credit instruments. The purchase of
government notes, securities, and other negotiable instruments other than
the instruments offered by the SB Corporation, and the granting of loans to
MSMEs, other than to BMBEs, to the extent funded by wholesale lending of,
or rediscounted with, another bank shall not be deemed compliance with the
foregoing requirement.
Subsection X342.5. Rights/remedies available to lending institutions
not qualified to acquire or hold lands of public domain. Lending
institutions which are not qualified to acquire or hold lands of the public domain
in the Philippines shall be permitted to bid and take part in sales of mortgaged
real property in case of judicial or extra-judicial foreclosure, as well as avail of
receivership, enforcement and other proceedings, solely upon default of a
borrower, and for a period not exceeding five (5) years from actual possession,
provided that in no event shall title to the property be transferred to such
lending institution. If the lending institution is the winning bidder, it may,
during said five (5) year period, transfer its rights to a qualified Philippine
national, without prejudice to a borrower's rights under applicable laws.
Subsection X342.6. Submission of reports. Banks shall submit reports
on compliance with the mandatory credit allocation on a quarterly basis within
15 banking days from the end of reference quarter to Supervisory Data Center
(SDC) of the BSP, using the attached form. Said report shall be considered
category A-3 report. It shall become effective starting with the reporting period
ending 31 December 2008. Specific guidelines on the modes/manner of
submission of the report shall be covered by a separate issuance.
Banks shall maintain appropriate records/details of the reported loans to
micro, small and medium enterprises and shall make these available to BSP.