General Credit Guidelines

I. Pricing
II. Repayment Mode and Term
III. Availability period
IV. Mode of Release or Availment
V. Insurance
VI. Collateral and Security Requirements
a. Acceptable Requirements
b. Types of Collaterals
 Real Estate Mortgage
 Chattel Mortgage
 Hold-Out on Deposits
 Third Party Mortgage
c. Evaluation of Collateral
VII. Credit /Background Investigation
VIII. Fees and Charges
IX. Taxes
Considerations in Packaging

Credit Approval Medium and Related Documents

1. Credit Facility Proposal (CFP)
- The document used in proposing credit to the approving authorities. It contains the
detailed information on the client, the transaction and/or project, terms of
condition, the results of evaluation of the financial performance, projected financial
statements, results of credit investigation and deviations.

2. Special Transactions Offering Ticket

- It is the document used in proposing the ff:
a. Amendment/regularization of deviations from the approved terms and
conditions
b. Partial release/substitution of collateral
c. One time or case to case basis
3. Basic Business Information
- It contains a brief background on the borrower or the borrowing firm.
4. Credit Investigation Report
- It summarizes the result of the credit investigation conducted on the borrowers thru
credit bureaus
5. Appraisal Report
- It covers the result of the appraisal conducted on the collaterals offered. It shows
the basis of valuation made.
6. Notice of Approval of Disapproval
 Credit Implementation
1. Process Flow
2. Related process
a. Credit Documentation
b. Credit Availments/Disbursements
c. Standard documents and descriptions
 Line agreements
 Restructuring agreements
d. Availment documents
 PN
 Disclosure Statement
 Amortization schedule
 Collateral/security documents

Credit Administration and Account Monitoring

1. Process flow
2. Major areas
a. Compliance to terms and conditions
b. Collection of loan amortization
c. Compliance with key covenants
d. Periodic submission of requirements
e. Monitoring of industry situation
f. Conduct of client calls
g. Inspection of supporting security files
h. Appraisal/inspection of collaterals
i. Credit and background investigation
3. Annual review of accounts
4. Credit file maintenance
a. Credit folders
b. Credit files
c. Access to credit folders and files
d. Maintenance/culling/retention period
5. Collection system
6. Application of payment
7. Penalty
8.
 Problem Accounts and Remedial Management
A. Problem Recognition
a.1 General Guidelines
a.2 Credit Lapses
 Loan Packaging
 Customer-related Factors
 Others
a.3 Symptoms of Weakened Accounts
 Violation of loan agreement provision
 Internal problems
 Financial
 Non-financial indicators
a.4 Account Classification

B. Remedial Management
b.1 General Guidelines
b.2 Remedial Measures
Remedial Strategies
 Restructuring
 Refinancing
 Offsetting
 Strengthen collateral/credit position
 Substitution/Addition of collateral
 Assumption of Mortgage
