June 14, 2013
BSP MEMORANDUM NO. M-2013-029
| FOR | : | All Banks and Quasi-Banks |
| SUBJECT | : | Clarification on Guidelines on Lender Count |
For the guidance of all banks/quasi-banks, please be informed of the following clarifications on the guidelines on lender count under Subsection 4101Q.2 of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI):
• The "names of payees" on the face of each debt instrument shall be the primary basis of counting the number of lenders or placers in a borrowing instrument. The said rule is reiterated in the second paragraph of Subsection 4101Q.2 item (a) of the MORNBFI when the provision mentions that in case the debt instrument is issued to two or more payees under an "and/or" and "or" arrangement, the number of payees appearing on the instrument shall also be the basis for counting the number of lenders or placers. There are only two exceptions to the provision in Subsection 4101Q.2 of the MORNBFI, i.e., first, the debt instrument is issued in the name of a husband and wife followed by the word "spouses"; and...
