Annex H

COS-CMSD-CLSD Memorandum 2021-001

TO: ALL LENDING UNITS

BRANCH SERVICES SUPPORT SEGMENT
CLSD Associates

FROM:

Head, Credit & Loans Services Dep’t. (CLSD)

Capital Markets Services Division
Central Operations Segment
Operations Group

FVP, Yvonne A. Roque

Head, Capital Markets Services Division
Central Operations Segment
Operations Group

DATE: Oct 29, 2021

SUBJECT: Implementing Guidelines for Loan and Securities/Collateral Safekeeping

This implementing guideline is being issued to strengthen existing policies of the bank on
the safekeeping of loans and securities / collateral documents, handling of submitted
scanned documents and submission of original documents (physical transmission) for loan
transactions.

A. Coverage

This implementing guideline covers the safekeeping of original loans and securities/collateral
documents for all borrowing accounts of the bank, as follows:

Custodian
Original Copy of Securities and
Lending Unit Collateral Documents except
Original Loan Documents
TCTs/OCTs/CCTs for ROPA*- related
accounts*

Remedial Management Division

(RMD) – Asset Management and
Remedial Group (AMRG)
CLSD CLSD
Metro Manila Lending Centers and
BC, including nearby Luzon
(Bulacan/Cavite/Laguna)

Lending Centers with presence of

Respective OCs Respective OCs
Operations Centers (OCs)

Lending Centers without presence

Servicing BC/Lending Center Servicing BC/Lending Center
of OCs

All VISMIN BCs not under

Own BC/Lending Center Own BC
Operations Centers
* 2015-18: General Services Circular No. CG-GSC-019: Safekeeping of Original Documents for Collateral of
Client's Loans and Properties Owned by the Bank
 COS-CMSD-CLSD Memorandum 2019-001

B. Loan and Securities/Collateral Documents Safekept by CLSD.

Unless otherwise stated in the approved CA or other medium of approvals, all original loan
and securities/collateral documents for Lending Centers (LC) and Business Centers (BC), in
Metro Manila and nearby Luzon (Bulacan/Cavite/Laguna), shall be safekept by CLSD.

For cases where original loan and collateral documents are in the possession of Metro Manila
Lending Center and Business Center (BC) but physical transmittal of the required and
completed requirements will not reach CLSD office (12/F RCBC Plaza) at Transaction Date,
below procedures shall follow:

1. For Original Copy of Documents submitted by the client directly to Relationship Manager
(RM) / Account Officer (AO). RM/AO shall ensure that the :

1.1. Certification (Annex A) is prepared. This certifies that:

 Original Copy of the documents are in the RM’s/AO’s possession;

 Details of the Original Copy of documents are the same and correct as
compared to the scanned copies / photocopies sent to CLSD via Workflow;
 Certification is signed by the RM and Marketing Assistant (MA);

1.2. Original Copy of the Documents are transmitted to CLSD (physical documents
transmitted by the RM/AO) within 5 banking days from Transaction Date.
 Centralized receiving area of original documents is at the 17th flr RCBC Plaza
Tower 1

2. For Original Copy of Documents submitted by the client directly to the servicing
Business Center / Branch Operations Head (BOH) and/or Service Operations Officer
(SOO). BC / BOH / SOO shall ensure that the:

2.1. Certification (Annex A) is prepared. This certifies that:

 Original Copy of the documents are in the BC’s BOH’s/SOO’s possession;

 Details of the Original Copy of documents are the same and correct as
compared to the scanned copies / photocopies sent to CLSD via Workflow;
 Certification is signed by the BOH and SOO;

2.2. Original Copy of the Documents are transmitted to CLSD (physical documents
transmitted by the BOH/SOO) within 5 banking days from Transaction Date.
 Centralized receiving area of original documents is at the 17th flr RCBC Plaza
Tower 1

3. Scanned copy of the documents are such, but not limited to the following:

3.1. Promissory Notes and disclosure statement

3.2. Assignment of Deposits
3.3. Deed of REM

C. Original Loan / Collateral Documents Safekept by Business Centers (BC) /

Operations Centers (OC)

1. All Loan and securities/collateral documents safekept by BCs/OCs shall follow procedures
from section B above.
 COS-CMSD-CLSD Memorandum 2019-001

2. BCs/OCs shall allow release of collateral only upon receipt of clearance and/or notice via
email/approved Workflow from CLSD.

3. The following accounting entries should be passed to record safekeeping of the

documents where each title shall have a nominal value of P1.00:

3.1. To take up or record the title(s) in the inventory:

Dr. 730000001 Other Contingent Account P1.00
Cr. 780500001 Items Held for Safekeeping/Custody P1.00

3.2. Upon release of the collateral/securities:

Dr. 780500001 Items Held for Safekeeping/Custody P1.00

Cr. 730000001 Other Contingent Account P1.00

4. BC or OC shall submit to CLSD a Monthly Inventory Report of securities/collateral

documents on hand.

5. CLSD shall conduct regular physical checking/inventory of documents, as may be

required.

D. Monitoring and Control

1. CLSD shall tag in the Account Documentation Checklist System the loan/collateral
documents, including the name of the BC who certified the custody of the original
documents.

2. CLSD shall generate a weekly report to monitor receipt of original documents vs. the 5-
Day commitment period. Non-submission of the original loan and collateral documents
on the 5-day commitment period shall be escalated to the following:

Aging (5Day Commitment Period +1) Escalation

Lending Center Head /
1 to 5 banking days
District Service Head
Lending Center Division Head /
6 to 10 banking days
Regional Service Head
Lending Center Segment Head /
11 to 15 banking days
Deputy Group Head cc Group Head
16 banking days up to 1 month Group Head
More than 1 month Risk Committee

3. Extension of the 5 Day Commitment Period shall be approved by the following:

Extension period Approver

Up to 5 working days Division Head / District Service Head
Up to 10 working days Segment Head / Regional Service Head
more than 10 days up to 1 month Group Head / Deputy Group Head

For guidance and strict implementation