Second Division]. [3](https://lawphil.net/judjuris/juri2018/feb2018/gr218390so2018.html#rnt3) Id. at 84. [4](https://lawphil.net/judjuris/juri2018/feb2018/gr218390so2018.html#rnt4) 626 Phil. 700 (2010) [Per J. Peralta, Third Division]. [5](https://lawphil.net/judjuris/juri2018/feb2018/gr218390so2018.html#rnt5) Id. at 7

Second Division]. (https://lawphil.net/judjuris/juri2018/feb2018/gr218390so2018.html#rnt3) Id. at 84.

(https://lawphil.net/judjuris/juri2018/feb2018/gr218390so2018.html#rnt4) 626 Phil. 700 (2010) [Per J. Peralta, Third Division]. (https://lawphil.net/judjuris/juri2018/feb2018/gr218390so2018.html#rnt5) Id. at 715-716.

(https://lawphil.net/judjuris/juri2018/feb2018/gr218390so2018.html#rnt6) 574 Phil. 495 (2008) [Per J. Corona, First Division]. (https://lawphil.net/judjuris/juri2018/feb2018/gr218390so2018.html#rnt7) Id. at 506-507.

(https://lawphil.net/judjuris/juri2018/feb2018/gr218390so2018.html#rnt8) 690 Phil. 134 (2012) [Per J. Mendoza, Third Division]. (https://lawphil.net/judjuris/juri2018/feb2018/gr218390so2018.html#rnt9) Id. at 145-146.

(https://lawphil.net/judjuris/juri2018/feb2018/gr218390so2018.html#rnt10) See also Rep. Act No. 8791, sec. 5. Policy Direction; Ratios, Ceilings and Limitations.

-The Bangko Sentral shall provide policy direction in the areas of money, banking and credit. For this purpose, the Monetary Board may prescribe ratios, ceilings, limitations, or other forms of regulation on the different types of accounts and practices of banks and quasi-banks which shall, to the extent feasible, conform to internationally accepted standards, including those of the Bank for International Settlements (BIS). The Monetary Board may exempt particular categories of transactions from such ratios, ceilings and limitations, but not limited to exceptional cases or to enable a bank or quasi-bank under rehabilitation or during a merger or consolidation to continue in business with safety to its creditors, depositors and the general public.

(https://lawphil.net/judjuris/juri2018/feb2018/gr218390so2018.html#rnt11) Manual of Regulations for Banks (2017). (https://lawphil.net/judjuris/juri2018/feb2018/gr218390so2018.html#rnt12) The Committee has been reconstituted several times to update the MORB and to keep it consistent with banking legislative reforms, and its implementing rules and regulations, and amendments to existing policies. (https://lawphil.net/judjuris/juri2018/feb2018/gr218390so2018.html#rnt13) The minimum features of the financing plan is provided for in X338.1 and X338.3 of the Manual of Regulations for Banks: § X338.

l Mechanics. The mechanics of such financing plan shall have the following minimum features: a. Participation shall be limited to fulltime and permanent officers and employees of the bank; b.

Financial assistance shall only be for the following purposes: (1) The acquisition of a residential house and lot, or the construction, renovation or repair of a residential house on a lot owned and to be occupied by the officer or employee; (2) The acquisition of vehicles, household equipment and appliances for the personal use of the officer or employee or his immediate family; or (3) To meet expenses for the medical, maternity, education, emergency and other personal needs of the officer or employee or his immediate family; c. Financial assistance for purposes mentioned in Items "b(l )" and "b(2)"

of this Subsection shall be granted in the form of a loan, advance or other credit accommodation, installment sale, lease with option to purchase or lease-purchase arrangement where the lessee is obliged to purchase the real estate or equipment; d. The amount and maturity of financial assistance for each purpose shall be determined by the bank in consonance with the normal requirements thereof: Provided, That the maximum amount shall be stated as percentage or multiple of the total monthly compensation of the officer or employee and shall be within the paying capacity of the borrowing officer or employee. Total monthly compensation shall include the basic salary and all fixed and regular monthly allowances of the officer or employee.

Payments "for sickness benefits and other special emoluments which are not fixed or regular in nature, or the commutation into cash of unused leave credits shall not be included in the computation of total monthly compensation; e. The amortization payment shall include amounts necessary to cover mortgage redemption insurance and fire insurance premiums, taxes, special assessments, and other related fees and charges; f. Availment of the financing plan to construct or acquire a residential house and lot shall be allowed only once during the officer's or employee's tenure with the bank, except where the right over the real estate previously acquired or constructed under the financing plan is absolutely transferred or assigned to another officer or employee of the bank or to a third party: Provided, That the bank must be fully paid or reimbursed for the outstanding availment on the financing plan before the officer/employee is allowed to re-avail himself of the same financing plan.

An officer or employee (or his spouse) who already owns a residential house and lot shall not be qualified to avail himself of financial assistance for purposes of acquiring a residential house and/or lot. These prohibitions notwithstanding, financial assistance for the repair or renovation of a residential house may be allowed subject to such limitation as may be prescribed by the bank pursuant to Item "d" of this Subsection; g.

Availment of the financing plan for the acquisition of a specific type of equipment or appliance shall be allowed not oftener than once every three (3) years: Provided, That re-availment shall be allowed only after previous obligations in connection with the acquisition of the same type of equipment or appliances have been fully liquidated; and h. The bank shall adopt measures to protect itself from losses such as by incorporating in the plan or contract provisions requiring co-makers or co-signor, chattel, or real estate mortgages, fire insurance, mortgage redemption insurance, assignment of money value of leave credits, pension or retirement benefits. .

. . .

§ X338.3 Other conditions/limitations a. The investment by a bank in equipment and other chattels under its fringe benefits program for officers and employees shall be included in determining the extent of the investment of the bank in real estate and equipment for purposes of Section 51 of R.A. No. 8791. b.

The investment by a bank in equipment and other chattels contemplated under these guidelines shall not be for the purpose of profits in the course of business for the bank. c. The aggregate outstanding loans and other credit accommodations granted under the bank's fringe benefits program, inclusive of those granted to officers in the nature of lease with option to purchase, shall not exceed five percent (5%) of the bank's total loan portfolio.

Banks providing financial assistance to their officers/employees shall submit a regular report on "availments of financial assistance to officers and employees" to the BSP within fifteen (15) banking days after end of reference semester. The appropriate department of the [Supervision and Examination Sector] may further require banks to submit such data or information as may be necessary to facilitate verification of such transactions by BSP examiners.

(Emphasis supplied) (https://lawphil.net/judjuris/juri2018/feb2018/gr218390so2018.html#rnt14) Manual of Regulations for Banks citing Circ. No. 855 (2014). (https://lawphil.net/judjuris/juri2018/feb2018/gr218390so2018.html#rnt15) Manual of Regulations for Banks citing Circ.

No. 855 (2014). (https://lawphil.net/judjuris/juri2018/feb2018/gr218390so2018.html#rnt16) 2017 Manual of Regulations for Banks citing Circ. No. 855 (2014).

(https://lawphil.net/judjuris/juri2018/feb2018/gr218390so2018.html#rnt17) BSP Circ. No. 423, series of 2004, subsec.

X338.3 Other conditions/limitations The investment by a bank in equipment and other chattels under its fringe benefits program for officers and employees shall be included in determining the extent of the investment of the bank in real estate and equipment for purposes of Section 51 of R.A. No. 8791. The investment by a bank in equipment and other chattels contemplated under these guidelines shall not be for the purpose of profits in the course of business for the bank. All loans or other credit accommodations to bank officers and employees, except those granted under the fringe benefit program of the bank, shall be subject to the same terms and conditions imposed on the regular lending operations of the bank.

Loans or other credit accommodations granted to officers shall, in addition, be subject to the provisions of Section 36 of R.A. No. 8791 and Sections X326 to X336 but not to the individual ceilings where such loans or other credit accommodations are obtained under the bank's fringe benefits program. The aggregate outstanding loans and other credit accommodations granted under the bank's fringe benefits program, inclusive of those granted to officers in the nature of lease with option to purchase, shall not exceed five percent (5%) of the bank's total loan portfolio. (https://lawphil.net/judjuris/juri2018/feb2018/gr218390so2018.html#rnt18) 552 Phil. 77 (2007) [Per J. Quisumbing, Second Division].

(https://lawphil.net/judjuris/juri2018/feb2018/gr218390so2018.html#rnt19) 519 Phil. 176 (2006) [Per J. Callejo, Sr., First Division]. The Lawphil Project - Arellano Law Foundation [](javascript:history.back\(1\)) [](https://lawphil.net/judjuris/juri2018/feb2018/gr218390so2018.html#top)