DOSRI
DOSRI
DOSRI ACCOUNTS
— No director or officer of any bank shall, directly or indirectly, for himself or as the representative or agent of
others, borrow from such bank nor shall he become a gauarantor, indorser or surety for loans from such bank to others, or
in any manner be an obligor or incur any contractual liability to the bank.
Restrictions under the GBL: (Sec.36)
a.) Procedural requirement. Written approval of the majority of all the directors of the bank.
b.) Arms Length Rule. Terms are not less favorable to the bank than those offered to others.
c.) Reportorial Requirement.
d.) Aggregate Ceilings. The Monetary Board may regulate the amount of loans, credit accommodations and
guarantees that may be extended, directly or indirectly, by a bank to its directors, officers, stockholders and their
related interests, as well as investments of such bank in enterprises owned or controlled by said directors,officers,
stockholders and their related interests.
e.) Individual Ceilings.
Restrictions under Sec 26, NCBA.
a.) The borrower shall be required by the lending bank to waive the secrecy of his deposits of whatever nature in all
banks in the Philippines.
b.) Any information obtained from an examination of his deposits shall be held strictly confidential and may be used
by the examiners only in connection with their supervisory and examination responsibility or by the Bangko
Sentral in an appropriate legal action it has initiated involving the deposit account.
COLLATERALS
A. Value of Collaterals. Loans and other credit accommodations against real estateshall not exceed seventy-five
percent (75%) of the appraised value of the respective real estate security,plus sixty percent (60%) of the
appraised value of the insured improvements.
B. Foreclosure of Mortgage.
a.) Redemption period
For Natural Persons - the mortgagor or debtor whose real property has been sold for the full or partial
payment of his obligation shall have the right within one year after the sale of the real estate to redeem the
property.
For Judicial Persons - juridical persons whose property is being sold pursuant to an
extrajudicial foreclosure, shall have the right to redeem the property in accordance with this provision until,
but not after, the registration of the certificate of foreclosure sale with the applicable Register of Deeds which
in no case shall be more than three (3) months after foreclosure, whichever is earlier.
b.) Redemption Price. Redemption may be exercised paying the amount due under the mortgage deed, with
interest thereon at the ratespecified in the mortgage, and all the costs and expenses incurred by the bank or
institution from the saleand custody of said property less the income derived therefrom.
CONSERVATORSHIP
Whenever, on the basis of a report submitted by the appropriate supervising or examining department, the
Monetary Board finds that a bank or a quasi-bank is in a state of continuing inability or unwillingness to
maintain a condition of liquidity deemed adequate to protect the interest of depositors and creditors, the
Monetary Board may appoint a conservator with such powers as the Monetary Board shall deem necessary.
Powers of Conservator:
a.) take charge of the assets, liabilities, and the management thereof,
b.) reorganize the management,
c.) collect all monies and debts due said institution, and
d.) exercise all powers necessary to restore its viability.