Single Borrower Limit

The total amount of loans, credit accommodations and guarantees that may
be extended by a bank to any person, partnership, association, corporation or
other entity shall at no time exceed twenty five percent (25%) of the
net worth of such bank. The basis for determining compliance with the
single borrowers limit (SBL) is the total credit commitment of the bank to or
on behalf of the borrower.
The total amount of loans, credit accommodations and guarantees prescribed
in the first paragraph may be increased by an additional twenty five
percent (25%) of the net worth of such bank: Provided, That the
additional liabilities are adequately secured by trust receipts, shipping
documents, warehouse receipts or other similar documents transferring or
securing title covering readily marketable, non-perishable goods
which must be fully covered by insurance.

DOSRI Accounts
borrower is a director, officer, stock holder or related interest
his bank, subsidiary, or controlling property shares
more than 5% of the capital and surplus of the lending bank

BSP directors are prohibited to work in any banking, quasi-banking

institutions within 2 years from separation. (Probably problem)

Banko Matatag, Inc., a universal bank, wants to engage in insurance

business as an insurer and it has enough capital to do so. May it be
licensed to do so? (4%)

No, under the law banks are prohibited to engage in insurance business. However, a
universal bank may engage in "bancassurance " only by selling insurance policies
of the insurance company in which it owes upto 5% of the equity.

Can a commercial Bank acquire a Universal bank? (Possible problem)

Yes. There is no prohibition from the law that prohibits a commercial bank from
acquiring a universal bank. Provided, it can maintain the requirements required of a
universal bank.

Since she got to Manila, Mira shops only with cash. One day, she decided
to buy a refrigerator worth P 10,000.00 and offered to pay it with
P10,000.00 worth of assorted coins from her piggy bank. The store
manager refused to accept the coins and demanded notes. Did Mira make
a valid tender of the Purchase? (4%)

No, under the law coins are only considered legal tender under the following
conditions. For centavo coins, upto the value of P100.00 while peso coins upto the
value of P1,000.00. Since the price is P10,000.00 she did not made a valid tender.
May a group of person seeking to use the word BANK in its corporate
name but not engaged in banking or functioning as banks. (Probably a
problem)

No. under the law, only stock corporations under the supervision of the Monitory
Board can add the work Bank or Banking in its corporate name. Hence, they must
be engages in the banking business.
Celso maintained a peso savings account with ABC Bank. On orders of the
RTC, the sherif garnished P50,000 of his deposit to satisfy the judgement
in favor of his creditor, Ramon. Celso complained that the garnishment
violated the Law on Secrecy of Banks Deposits because the existence of of
his savings account was disclosed to the public. (a) Is Celso's complaint
meritorious or not? (b) what would be your answer if Celso's deposit is in
U.S. dollar? (4%)

(a) There is No Merit. The Secrecy of bank deposits imposes exemptions to the bank
secrecy, one of the exemptions is when it is a subject of litigation. Hence, his
contention must fail.

(b) If in dollar, then there is a violation of the bank secrecy. Under the law, the only
exemption with regard to dollar deposit is by written waiver by the depositor. Since,
nothing in the facts states that Celso made a waiver it violated the Secrecy of bank
deposits.

What is required of a foreigner under foreign investment law? (Possible

problem cenario)

1. Inward remittance of $200,00

2. Bring advance technology
3. Hire at least 50 Filipinos

What lands may a former natural born Filipino acquire ?

Urban land (not exceeding 5,000sqm); Rural Land (not exceeding 3 hectars)
IN THE ALTERNATIVE

Truth in Lending Act (Possible problem)

Before consummation it is necessary that a DISCLOSURE STATEMENT

containing the breakdown of expenses must be given.
The SC has ruled that additional interest or penalty is in the nature of finance
charges which must be stated in the disclosure statement.