(NAR) VOL.8 NO. 3 / JULY - SEPTEMBER 1997
SECTION 1. The first paragraph of Subsection _405.5, Item 1.1 is amended to read as follows:Item 1.2 of Subsection _405.5 is amended to read as follows:
"1.1 Reserves Against Peso-Denominated Common Trust Funds
The required reserves against peso-denominated common trust funds and such other managed peso funds which partake the nature of collective investment of peso-denominated common trust funds of all financial intermediaries authorized to engage in trust and other fiduciary business shall be fifteen percent (15%). Of the fifteen percent (15%) required reserves, five percentage points may be held in the form of short-term market-yielding government securities purchased directly from the BSP-Treasury Department."
"1.2 Reserves Against Trust and Other Fiduciary Accounts (TOFA) — OthersSECTION 2. The third paragraph of Subsection _405.6 on the form and composition of reserves is amended to read as follows:
In addition to the basic security deposit required under Subsection _405.1, all financial intermediaries authorized to engage in trust and other fiduciary business shall maintain ten percent (10%) reserve requirement against Trust and Other Fiduciary Accounts (TOFA) — Others, except (a) accounts held under administration; (b) bond issues under deed of trust or mortgage; (c) custodianship and safekeeping; (d) depository/reorganization; (e) employees' benefit plans under trust; (f) escrow; (g) personal trust (testamentary or living trust); (h) executorship; (i) guardianship; (j) life insurance trust; and (k) pre-need plans (institutional/individual), plus five percent (5%) reserves which may be in the form of short-term market-yielding government securities purchased directly from the BSP-Treasury Department."