(NAR) VOL.8 NO. 3 / JULY - SEPTEMBER 1997
"1.1 Reserves Against Peso-Denominated Common Trust FundsSECTION 2. Item 1.2 of Subsection _405.5 is amended to read as follows:
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 ten percent (10%).
On top of the regular reserve requirement, an eight (8) percentage point liquidity reserve effective 5 September 1997, and subsequently seven (7) percentage point reserve effective 12 September 1997 shall be imposed which 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) — OthersProvided, that the reserves on trust and other fiduciary accounts (TOFA) — Others shall be provided out of such funds."
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 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).
On top of the regular reserve requirement, an eight (8) percentage point liquidity reserve effective 5 September 1997, and subsequently seven (7) percentage point reserve effective 12 September 1997 shall be imposed which may be held in the form of short-term market-yielding government securities purchased directly from the BSP-Treasury Department."