Procedures for Obtaining a Certificate of Eligibility under the SPV Act, as amended

May 11, 2006BSP MEMORANDUM NO. M-2006-001MEMORANDUM TO ALL BANKS AND NON-BANK FINANCIAL INSTITUTIONS PERFORMING QUASI-BANKING FUNCTIONS (NBQBs)SUBJECT : Procedures for Obtaining a Certificate of Eligibility under the SPV Act, as amendedThe Monetary Board, in its Resolution No. 549 dated 27 April 2006, approved the following procedures for banks/NBQBs that intend to transfer/sell their non-performing assets (NPAs) to a Special Purpose Vehicle (SPV) or to an individual that involves a single family residential unit, or transactions involving dacion en pago by the borrower or third party of a non-performing loan (NPL), for the purpose of obtaining a Certificate of Eligibility (COE) which is required to avail of the incentives provided under R.A. No. 9182, as amended by R.A. No. 9343. 1. Prior to the filing of any application for transfer/sale of NPAs, a bank/NBQB shall coordinate with the Bangko Sentral ng Pilipinas (BSP) through the Supervisory Data Center (SDC) and the appropriate Supervision and Examination Department (SED) to develop a reconciled and finalized master list of its eligible NPAs.For this purpose, banks/NBQBs were requested to submit...