September 12, 1985
SEC-BED * MEMORANDUM CIRCULAR NO. 01-85
| SUBJECT | : | Withdrawals on Trust Fund Deposits of Pre-Need Plan Companies |
All trustee banks of Pre-Need Companies which are authorized to sell pre-need contracts are hereby enjoined to comply with the following provision of the Revised Rules on Registration and Sale of Pre-Need Plans, Pension Plans, Life Plans and Similar Contracts and Investments. cdrep
"SECTION 7. Trust Fund. — To guarantee the delivery of property or performance of services in the future, a deposit shall be made by the issuer with a trust company, bank or investment house . . .
The trust fund (inclusive of earnings) shall be administered and managed by a trust company, bank or investment house authorized to perform trust functions in the Philippines. No withdrawal shall be made from the trust fund except for paying the cost of services rendered or property delivered, bank charges and investment expenses in the operation of the trust fund, cash surrender/termination values payable to the planholders annuities, contributions to the fund of cancelled plans and taxes on trust funds...
