lending services - land bank of the philippines

Lending Services

External Services

1. Accreditation of Licensed Brokers

Real Estate Brokers (REB) may be accredited by the Bank to find buyers or

lessees of the Bank’s acquired assets that have undergone a failed public

bidding.

Office or Division: Special Assets Department (SPAD)

Classification: Highly Technical

Type of Transaction: G2C – Government to Citizen; G2B – Government to Business

Who may avail: - REB / Individuals or Sole Proprietors duly licensed by Professional Regulation Commission (PRC) and

- Partnerships or Corporations with REB duly licensed by PRC shall be eligible for accreditation

CHECKLIST OF REQUIREMENTS WHERE TO SECURE

Duly accomplished and notarized Application Form for the Accreditation of REBs

LBP

Valid license PRC

Certificate of Registration PRC

Tax Identification Number (TIN) card Bureau of Internal Revenue (BIR)

Registration (Form 2303) BIR

Sample Official Receipt BIR

Photocopy of Valid IDs Concerned Agencies

Official Receipt for the payment of Registration Fee

LBP Branch where the payment was made

Additional Requirement for Partnerships or Corporations

Notarized Secretary’s Certificate authorizing the transaction and the entity’s signatory

Corporate Secretary of the Applicant

Securities and Exchange Commission (SEC) Certificate of Registration (duly certified as true copies by the Corporate Secretary)

SEC

CLIENT STEPS AGENCY ACTIONS

FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Submit duly notarized REB’s Accreditation Form and documentary requirements with proof of payment for registration fee

1.1 Receive the duly notarized REB’s Accreditation Form and documentary requirements with proof of payment for registration fee

500 for Indivi-duals

1,000

Corpo-rations

1 Hour Account Officer / Account Assistant

(AO/AA) SPAD

1.2 Acknowledge receipt of the Broker’s Application Form

None 1 Banking Day (cut off time of 3:00

PM)

AO/AA SPAD

2. Wait for the approval of the application for accrediation

2.1 Prepare request for Credit Information/ Background Information (CI/BI) Report

None 1 Hour AO/AA SPAD

Request for CI/BI 10 Banking Days

Administrative Assistant/Analyst

Property Valuation and Credit Information Department (PVCID)

Evaluate completeness of required documents; CI/BI; Prepare, Approve and Release of the report

None Credit Information Analyst,

Credit Information Specialist,

Team Head PVCID

13


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

2.2 Secure approval of the accreditation

None 7 Banking Days

AO/AA SPAD

2.3 Send Letter of Accreditation

None 3 Banking Days

AO/AA SPAD

TOTAL 500 for Indivi-duals

1,000

Corpora-tions

21 Banking Days,

2 Hours

2. Certificate of Full Payment

A Certificate of Full Payment is issued once the Borrower has fully paid its loan

with the Bank.

Office or Division: Lending Centers

Classification: Simple

Type of Transaction: G2C – Government to Citizen; G2B – Government to Business; G2G – Government to Government

Who may avail: Government to Citizen - Small Farmers and Fishers - Overseas Filipino Workers (OFW) - Consumer Client Government to Business - Cooperatives - Small and Medium Enterprises - Large Corporations - Water Districts - Banks - Non-Bank Financial Institutions Government to Government - Local Government Units (LGUs) - Government Owned and Controlled Corporations (GOCCs) - Government Agencies (GAs) - State Colleges and Universities (SUCs)


Letter request of the Borrower signed by authorized signatory

Borrower


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Submit a letter request to the Lending Unit (LU) managing your loan account (may also send via mail or e-mail)

1.1 Verify the request and prepare request for Certificate of Full Payment

P200.00 per

Certificate

1 Hour Account Officer/ Account Assistant

(AO/AA) Head Office Lending

Unit or Provincial Lending Center


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

Request for Certificate of Outstanding Balances and Interest Paid from LU

1.2 Verify details of balances and prepare Certificate

None 1 Hour, 30 Minutes

Loan Processor, Division Chief,

Assistant Department Manager,

Department Head Loans Implementation

Department (LID)

1.3 Upon receipt of Certificate from LID, transmit the same to the Borrower

None 1 Hour AO/AA Head Office Lending


TOTAL P200.00 per

Certificate

3 Hours, 30 Minutes

3. Disposal of Real and Other Properties Acquired – Negotiated

Sale (Bank or External Financing)

This is applicable only on Real and Other Properties (ROPAs) without

issues/limitations




Who may avail: Employed or Self-employed Individuals who are at least 18 years of age

Corporations duly registered with Securities and Exchange Commission (SEC)

Cooperatives duly registered with Cooperative Development Authority (CDA)

Local Government Units (LGUs)


Deposit of at least 10% of the Purchase Price

Buyer

Customer Information Sheet LBP

Negotiated Sale Offer Forms LBP

Know-Your-Client Questionnaire LBP

Valid IDs Concerned Agencies

TIN BIR

Letter of Guaranty Financing Institution

Additional Requirements for Corporation

SEC Certificate of Registration of Articles of Incorporation & By-Laws & amendments thereto, if any.

Corporate Secretary of the Corporate Buyer

Articles of Incorporation and By-Laws & amendments thereto, if any

Board Resolution/Secretary’s Certificate authorizing the transaction, authorized representative and signatory/s with the corresponding specimen signature/s

Latest General Information Sheet submitted to SEC.

Photocopy of two (2) valid ID’s of the authorized representative


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Inquire with SPAD on the availability of the property for Negotiated Sale

1.1 Orient client on the details of the property for negotiated sale and provide property profile, if necessary

None 1 Hour Account Officer/ Account Assistant

(AO/AA) SPAD

1.2 Require client to pay 10% of the offered price and basic documentary requirements


2. Submit the duly accomplished Negotiated Sale Offer (NSO) with proof of payment of at least 10% of the offered price and basic documentary requirements

2.1 Accept NSO, proof of payment and basic documentary requirements from the Buyer


2.2 Issue Term Sheet (TS) for conformity of the Buyer and additional documentary requirements

None 5 Banking Days

AO/AA SPAD

3. Sign the TS and return the duly signed document to SPAD including complete documentary requirements

3. Accept the signed TS and other documentary requirements



FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

4. Wait for the result of the evaluation of the offer

4.1 Secure approval of the sale transaction of the negotiated sale offer based on Bank’s policy

None 20 Banking Days for

offered price up to 20 Million

30 Banking Days for


60 Banking Days for


AO/AA SPAD

4.2 Issue Notice of Approval (NOA) of Sale for conformity of the buyer

None 3 Banking Days

AO/AA SPAD

5. Sign the NOA and return the duly signed document to SPAD and secure Letter of Guaranty (LOG) from the Financing Institution and submit to SPAD

5.1 Accept and validate the LOG submitted by the buyer from the issuing financing institution

None 1 Banking Day

AO/AA SPAD

5.2 Request for issuance of Statement of Account (SOA) for advances from Loans Implementa-tion Department (LID)

None AO/AA SPAD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

Issuance of SOA for advances

Prepare and issue SOA for advances

None 1 Banking Day

Loan Processor, Assistant Division

Chief, Division Chief, Assistant Department

Manager LID

5.3 Coordinate with the winning bidder/ buyer for the payment of the Bank’s advances (i.e., Real Estate Tax [RET], insurance, association dues, etc.)

None AO/AA SPAD

6. Pay the Bank’s advances within 30 days from date of Notice from the Bank

6. Receive proof of payments


7. Wait for the signing of Deed of Absolute Sale (DAS)

7.1 Prepare DAS

None 1 Banking Day

AO/AA SPAD

7.2 Request for legal sufficiency of DAS from Legal Services Group (LSG) and Secretary’s Certificate from Office of the Corporate Secretary (OCS)



FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

Legal Sufficiency and Secretary’s Certificate

Issue legal sufficiency on the DAS to SPAD

None 3 Banking

Days,

3 Hours for

simple

transaction

7 Banking Days,

3 Hours for complex

transactions

Legal Officer LSG

Issue Secretary’s Certificate

None 3 Banking Days,

2 Hours, 30 Minutes

Administrative Assistant/Analyst/ Specialist/Officer

Corporate Secretary OCS

7.3 Finalize and sign the DAS and send to the winning bidder/buyer

None 3 Banking Days

AO/AA SPAD

8. Sign and facilitate notarization of the Buyer’s Acknowledgment portion and return to SPAD

8. Request LSG to notarize the Acknowledg-ment portion of the Bank

None 1 Banking Day

AO/AA SPAD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

9. Wait for advice on when to pay the of Documentary Stamp Tax (DST)

Notarization DAS

9.1 Notarize and return DAS to SPAD

None 1 Banking Day

Legal Officer LSG

9.2 Pay the Certificate of Withholding Tax and advise client to pay DST

None 20 Banking Days

(provided not later than

BIR’s deadline)

AO/AA SPAD

10. Pay DST and other fees related to transfer of title Submit documents to BIR for application of Certificate Authorizing Registration (CAR); Submit copy to SPAD

10. Receive and validate copy of CAR


11. Wait for the release of the new title in favor of the Buyer

11.1 Retrieve the Securities [i.e., title and Tax Declaration (TD)] for transfer of ownership in favor of the buyer

None 2 Banking Days

AO/AA SPAD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

11.2 Submit together with the buyer the title to Registry of Deeds (RD) for transfer of ownership to the buyer

None 1 Banking Day

(paused-clock)

AO/AA SPAD

11.3 Inform the buyer upon receipt of new title from RD regarding release of the new title in his/her name

None 1 Banking Day

AO/AA SPAD

12. Facilitate notarization of Real Estate Mortgage (REM) and transfer of TD in client’s name; submit to SPAD or concerned LU/LC; settle the registration fees and DST for mortgage

12.1 Submit the new title and TD in the name of the buyer and duly notarized REM to RD for annotation


Metro Manila

15 Banking Days for

other provinces

(paused-

clock)

AO/AA SPAD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

12.2 Submit the new title with annotation of REM, TD and other documents to the financing institution


AO/AA SPAD

13. Wait advice from financing institution regarding start of amortization for the loan

13.1 Coordinate directly with external financing institution until full payment of the purchase price

None AO/AA SPAD

Payment from Financing Institution

13.2 Book transaction and issue Certificate of Full Payment to the Financing Institution

None 1 Banking Day



Department Manager LID

TOTAL None 156 Banking Days,

4 Hours, 30 Minutes


Sale (Cash Basis)

After a failed bidding, the offer to buy through negotiated sale shall be accepted

on a first-come-first-served basis, provided that the offered price is at indicative

price or within the bank’s acceptable discounted price. For Cash Basis

transactions, the buyer shall pay at least ten percent (10%) of the offered price

and the balance shall be payable within sixty (60) days without interest.










Buyer

Customer Information Sheet (CIS) LBP




TIN BIR

Bank Certificate of Deposit Depository Bank of the Buyer






Latest General Information Sheet submitted to SEC


Photocopy of two (2) Valid ID’s of the authorized representative


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE




(AO/AA) SPAD


None AO/AA SPAD

2. Submit the duly accomplished Negotiated Sale Offer (NSO) with proof of payment of at least 10% of the offered price and basic documentary requirements [within 60 days from Term Sheet (TS)]



2.2 Issue TS for conformity of the Buyer and additional documentary requirements

None 5 Banking Days

AO/AA SPAD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

3. Sign the TS and return the duly signed document to SPAD including complete documentary requirements

3.1 Accept the signed TS and other documentary requirements


3.2 Validate the Bank Certificate (submitted by the buyer) from the issuing Bank





offered price up to

20 Million

30 Banking Days for

offered price up to

50 Million

60 Banking Days for

offered price over

50 Million

AO/AA SPAD


None 3 Banking Days

AO/AA SPAD

5. Pay the remaining 90% purchase price within 90 days upon receipt of NOA of Sale

5.1 Receive proof of payment of the remaining purchase price



FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

5.2 Prepare request for Statement of Account (SOA) from Loans Implementa-tion Department (LID) for the advances




None 1 Banking Day



Manager LID

5.3 Coordinate with the winning bidder/buyer for the payment of the Bank’s advances (i.e. Real Estate Tax [RET], insurance, association dues, etc.)

None AO/AA SPAD

6. Pay Bank advances within 30 calendar days from receipt of notice from the Bank and provide proof of payment to SPAD

6.1 Receive proof of payments


6.2 Pay Certificate of Withholding Tax to BIR



BIR’s deadline)

AO/AA SPAD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

7. Sign NOA and wait for the issuance of the Deed of Absolute Sale (DAS)

7.1 Prepare DAS

None 1 Banking Day

AO/ AA SPAD

7.2 Request for legal sufficiency of DAS from Legal Services Group (LSG) and Secretary’s Certificate from the Office of the Corporate Secretary (OCS)

None 1 Hour AO/ AA SPAD


Prepare and issue legal sufficiency on the DAS to SPAD

None 3 Banking

Days, 3

Hours for

simple

transaction

7 Banking Days, 3

Hours for complex

transactions

Legal Officer LSG

Prepare and issue Secretary’s Certificate to SPAD

None 3 Banking Days, 2

Hours and 30 Minutes



7.3 Finalize and sign the DAS and send to the buyer

None 3 Banking Days

AO/ AA SPAD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE



None 1 Banking Day

AO/ AA SPAD

9. Wait for the release of the securities (Owner’s Duplicate copy of title and other pertinent documents)

Notarization DAS


None 1 Banking Day

Legal Officer LSG

9.2 Furnish notarized document to LID for booking

None 1 Hour AO/ AA SPAD

9.3 Book transaction and issue Certificate of Full Payment to SPAD

None 1 Banking Day

Loan Processor; Division Chief;

Assistant Department Manager; Department

Manager LID

9.4 Release Securities (i.e. Owner’s Duplicate Copy of Title/s and other pertinent documents)

None 3 Banking Days

AO/ AA SPAD


6 Hours, 30 Minutes


Sale (Installment Basis)

After a failed bidding, the offer to buy through negotiated sale shall be accepted

on a first-come-first-served basis, provided that the offered price is at IP or within

the bank’s acceptable discounted price. For Installment Basis transactions, the

buyer shall pay at least ten percent (10%) of the offered price and the balance

shall be payable over a specified term of one (1) year or up to a maximum of ten

(10) years at Bank’s approved fixed interest rates for installment sales.



Type of Transaction: G2C – Government to Citizen; G2B – Government to Business; G2G – Government to Government;







Buyer





TIN BIR

Marriage Certificate Philippine Statistics Authority (PSA)

Income Tax Return BIR/Employer

Certificate of Employment Employer








Latest General Information Sheet submitted to SEC.

Photocopy of two (2) Valid ID’s of the authorized representative

Audited Financial Statement (3 years) Accounting Department of the Corporate Buyer


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE




(AO/AA) SPAD


None AO/AA SPAD

2. Submit the duly accomplished Negotiated Sale Offer (NSO) with proof of payment of at least 10% of the offered price and basic documentary requirements



2.2 Issue Term Sheet (TS) for conformity of the Buyer and additional documentary requirements

None 5 Banking Days

AO/AA SPAD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

3. Sign the TS and return the duly signed document to SPAD including complete documentary requirements (shall be within 60 calendar days)

3.1 Accept the signed TS and other documentary requirements


3.2 Validate/ evaluate the proof of sources of income submitted by the buyer

None 3 Banking Days

AO/AA SPAD

3.3 Secure Credit Information/ Background Information (CI/BI) Report from Property Valuation and Credit Information Department (PVCID)

None AO/AA SPAD

Process request for CI/BI from LU

10 Banking Days

Administrative Assistant;

Administrative Analyst PVCID

Evaluate completeness of required documents; Conduct CI/BI; Prepare, Approve and Release the report

Credit Information Analyst; Credit

Information Specialist; Team Head

PVCID


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE




offered price up to

20 Million

30 Banking Days for

offered price up to

50 Million

60 Banking Days for

offered price over

50 Million

AO/AA SPAD


None 3 Banking Days

AO/AA SPAD

5. Sign the NOA and return the duly signed document to SPAD. Wait for the signing of Deed of Conditional Sale (DCS)

5.1 Prepare DCS and Schedule of loan amortization

None 1 Banking Day

AO/AA SPAD

5.2 Request for legal sufficiency of DCS from Legal Services Group (LSG) and Secretary’s Certificate from Office of the Corporate Secretary (OCS)



FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

5.3 Legal Sufficiency and Secretary’s Certificate


None 3 Banking

Days, 3

Hours for

simple

transaction

7 Banking Days, 3

Hours for complex

transactions

Legal Officer LSG

Issue Secretary’s Certificate to SPAD


Hours, 30 Minutes



5.4 Finalize and sign the DCS and send to the winning bidder/buyer

None 3 Banking Days

AO/AA SPAD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE



None 1 Banking Day

Loan Processor; Assistant Division

Chief; Division Chief; Assistant Department

Manager LID


None AO/AA SPAD

6. Pay Bank advances within 30 calendar days from receipt of notice from the Bank and provide proof of payment to SPAD

6. Receive proof of payments




None 1 Banking Day

AO/AA SPAD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE


Notarization DAS

8.1 Notarize and return DCS to SPAD

None 1 Banking Day

Legal Officer LSG

8.2 Release DCS and Schedule of loan amortization to buyer

None 3 Banking Days

AO/AA SPAD

8.3 Process transfer of management of the property to concerned LU/LC

None 1 Banking Day

AO/AA SPAD

9. Pay the monthly amortization dues (through auto-debit account/ post-dated checks) based on term per amortization schedule

Note: Monthly amortization shall be made until full payment.

9.1 Instruct Branch to apply mode of payment (auto-debit account/ post-dated checks)

None 1 Banking Day

AO/AA Head Office Lending

Unit/Provincial Lending Centers

9.2 Apply mode of payment and furnish Accounting Units concerned of the necessary documents for booking

None Bookkeeper/Teller Branch


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

10. Upon full payment of monthly amortization and applicable fees, if any, wait for the issuance of the Deed of Absolute Sale (DAS)

10.1 Prepare DAS None 1 Banking Day



10.2 Request for legal sufficiency of DAS from LSG and Secretary’s Certificate from OCS





None 3 Banking

Days, 3

Hours for

simple

transaction

7 Banking Days, 3

Hours for complex

transactions

Legal Officer LSG


None 3 Banking Days,

2 Hours, 30 Minutes

Administrative Assistant/Analyst/ Specialist/Officer,


10.3 Finalize and sign the DAS and send to the buyer

None 3 Banking Days




FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE



None 1 Banking Day




12.1 Book transaction and issue Certificate of Full Payment to LU

None 1 Banking Day

AO/AA Accounting Center


None 1 Banking Day

Legal Officer LSG





None 3 Banking Days




2 Hours

6. Disposal of Real and Other Properties Acquired – Public Bidding

Sale or disposal of Real and Other Properties Acquired (ROPA) effected through

public bidding in accordance with law.



Type of Transaction: G2C – Government to Citizen; G2B – Government to Business; G2G –Government to Government





Application to Participate in Public Bidding LBP

Conditions on the Conduct of Public Bidding

LBP


Secretary’s Certificate authorizing the representative to sign and negotiate, if applicable

Corporate Secretary of the Corporate Bidder

Duly notarized Special Power of Attorney authorizing the representative to sign and negotiate, if applicable

Bidder


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Inquire with SPAD on the property details of the ROPA for bidding

1. Orient client on the property details


(AO/AA) SPAD

2. Inquire with HOCAD Secretariat on the procedures for bidding

2. Orient client on the procedures for bidding and provide cut-off for submission of bids

None 1 Banking Day

HOCAD Secretariat Lending Support

Department (LSD)


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

3. Submit the bid before the specified cut-off time

3. Assist bidder in dropping of bids

None 1 Hour HOCAD Secretariat LSD

4. Participate in the bidding process

4.1 Facilitate bidding process

None 4 Hours HOCAD Secretariat LSD

4.2 Inform SPAD of the winning bidders

None 1 Hour HOCAD Secretariat LSD

4.3 Coordinate with the winning bidder/buyer for the submission of the other documentary requirements and the schedule of payments

None 2 Hours AO/AA SPAD

5. Submit necessary documentary requirements to SPAD and wait for the issuance of Notice of Award (NOA) from SPAD

5.1 Receive documentary requirements



FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

5.2 Secure approval of the transaction based on the Bank’s policy

None 1 Banking Day for bid price up to P30Million

15 Banking Days for bid price more than P30

Million and up to P50 Million

60 Banking Days for bid price over P50 Million

AO/AA SPAD

5.3 Issue NOA

Per NOA, full payment shall be made within 5 Banking Days (i.e. additional 10% on the next Banking Day from date of NOA and the 80% balance within five (5) Banking Days from date of NOA)

None 3 Banking Days

AO/AA SPAD

6. Pay10% additonal bid price and 80% remaining balance based on payment schedule specified in the NOA and submit proof payment to SPAD

6.1 Receive the proof of payments for the 10% additonal bid price and 80% remaining balance

None 5 Banking Days

AO/AA SPAD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

6.2 Prepare request for Statement of Account (SOA) from Loans Implementa-tion Department (LID) for the advances




None 1 Banking Day



Manager LID


None 1 Banking Day

AO/AA SPAD

7. Pay Bank advances within 30 calendar days from receipt of notice from the Bank and provide proof of payment to LID

7.1 Receive proof of payments


7.2 Pay Certificate of Withholding Tax to BIR



BIR’s deadline)

AO/AA SPAD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

8. Sign NOA and wait for the issuance of the Deed of Absolute Sale (DAS)

8.1 Prepare DAS

None 1 Banking Day

AO/AA SPAD

8.2 Prepare request for legal sufficiency from Legal Services Group (LSG) and Secretary’s Certificate from Office of the Corporate Secretary (OCS)





Hours for simple

transaction

7 Banking Days, 3

Hours for complex

transactions

Legal Officer LSG



Hours, 30 Minutes



8.3 Finalize and sign the DAS and send to the winning bidder/buyer

None 3 Banking Days

AO/AA SPAD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE



None 1 Banking Day

AO/AA SPAD

Notarization of DAS



None 1 Banking Day

Legal Officer LSG



10.3 Book transaction and issue Certificate of Full Payment to SPAD

None 1 Banking Day



Manager LID

10.4 Release Securities (i.e., Owner’s Duplicate Copy of Title/s and other pertinent documents)

None 3 Banking Days

AO/AA SPAD


3 Hours, 30 Minutes

7. Disposal of Real and Other Properties Acquired – Redemption

Foreclosed real estate properties registered in the name of an individual that may

be redeemed within the redemption period as prescribed by the Bank



Type of Transaction: G2C – Government to Citizen

Who may avail: - Mortgagor-debtor; - Heirs and/or successors in interest; - Judicial or judgment creditor of the mortgagor-debtor; or - Any person having a lien on the property subsequent to the

mortgage




FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Submit offer to redeem the property (at least 3 months prior to expiry of redemption offer)

1.1 Receive offer to redeem the property from the former owner or any party eligible to redeem the foreclosed property within the redemption period


(AO/AA) SPAD

1.2 Acknowledge receipt of the offer to redeem

None 1 Banking Day (cut-off at 3:00 PM)

AO/AA SPAD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1.3 Prepare request for computation of the redemption price from Loans Implementa-tion Department (LID) for Head Office Units/ Accounting Centers (AC) for Field Units


Computation of Redemption Price

Prepare and issue Statement of Account (SOA) to SPAD

None 1 Banking Day



Manager LID

Bookkeeper; Financial

Analyst; Financial Specialist;

Accountant; Accounting Center

Head Accounting Center

1.4 Inform the Redemptioner about the Redemption Price and the corresponding terms and conditions

None 1 Banking Day

AO/AA SPAD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

2. Facilitate upfront payment of at least 20% of the Redemption Price or full payment of the same

2.1 Receive proof of upfront of at least 20% of total redemp-tion price or full payment of the redemption price


2.2 Secure approval of the redemption transaction based on Bank’s policy

None 7 Banking Days

AO/AA SPAD

2.3 Issue Notice of Approval (NOA) of Redemption

None 1 Banking Day

AO/AA SPAD

3. Facilitate full payment, if applicable

3. Receive full payment, if applicable

None 1 Banking Day

AO/AA SPAD

4. Wait for the Redemption Certificate

4.1 Prepare Redemption Certificate

None 1 Banking Day

AO/AA SPAD

4.2 Request for legal sufficiency of the Redemption Certificate from Legal Services Group (LSG) and Secretary’s Certificate from Office of the Corporate Secretary (OCS)



FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE


Issue legal sufficiency on the Redemp-tion Certificate to SPAD


Hours for simple

transaction

7 Banking Days, 3

Hours for complex

transactions

Legal Officer LSG



Hours, 30 Minutes



4.3 Finalize and sign the Redemption Certificate and send to Redemptioner

None 3 Banking Days

AO/AA SPAD

5. Sign, facilitate notarization of the Redemptioner’s Acknowledgment portion and return the whole document to SPAD




FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE


Notarization of Redemptioner’s Certificate

6.1 Notarize and return Redemp-tioner’s Certificate to SPAD

None 1 Banking Day

Legal Officer LSG



6.3 Book redemption transaction and issue Certificate of Full Payment to SPAD

None 1 Banking Day



Manager LID


None 3 Banking Days

AO/AA SPAD


3 Hours, 30 Minutes

8. Issuance of Certificate of Outstanding Balances and Interest

Paid

The certificate of Outstanding Loan Balances and interest payment made is

being issued upon the request of the Borrower. This is usually needed by the

Borrower to validate their loan and interest paid to the Bank for their recording

purposes.







Borrower


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Submit a letter request to the Lending Unit managing the loan account (may also send via mail or e-mail)

1.1 Verify request and prepare memo-request to Loans Implementation Department (LID) for the said Certificate

P200.00 per

Certificate

1 Hour Account Officer/ Account Assistant




FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

Request for Certificate of Outstanding Balances and Interest Paid from LU

1.2 Verify details of balances and prepare Certificate


Loan Processor Division Chief,

Assistant Department Manager

Department Head LID

1.3 Transmit the Certificate to the Borrower



TOTAL P200.00 per

Certificate

3 Hours, 30 Minutes

9. Issuance of Letter of Guarantee

A Letter of Guarantee is issued to the supplier of public utility vehicles for loans

under the SPEED program of the Bank. The supplier allows the transfer of the

OR/CR under the name of the Borrower prior to loan release.



Type of Transaction: G2B – Government to Business

Who may avail: Government to Business - Small and Medium Enterprises (SMEs) - Large Corporations



Borrower


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Submit a letter request to the Lending Unit managing the loan account (may also send via mail or e-mail)

1. Verify the request and prepare the Letter of Guarantee

P200.00 per

Certificate

2 Banking Days

AA/AO Head Office Lending


TOTAL P200.00 per

Certificate

2 Banking Days

10. Leasing of Foreclosed Properties

Foreclosed properties that may be leased on a first-come-first served basis










FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Submit the Offer to Lease directly to SPAD (or send the offer via courier or registered mail)

1. Receive offer to lease from interested party


(AO/AA) SPAD

2. Wait for the issuance of the Term Sheet (TS)

2.1 Acknowledge receipt of the offer to lease


AO/AA SPAD

2.2 Request lease survey from Property Valuation and Credit Information Department (PVCID) or Provincial Lending Center (PLC) for properties in provinces

None AO/AA SPAD

4


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

2.3 Conduct of lease survey and furnish report to SPAD

None 1 Banking Day

Property Valuation Specialist

PVCID

AO/AA PLC

2.4 Require client to pay for one (1) month advance rental and two (2) months security deposit

None AO/AA SPAD

2.5 Prepare and issue TS


AO/AA SPAD

3. Submit the duly signed TS and proof of payment for one (1) month advance rental and two (2) months security deposit within Bank’s specified period

3.1 Receive signed TS including proof of payment

None 1 Hour

AO/AA SPAD

3.2 Secure approval of the lease offer based on Bank’s policy

None 3 Banking Days

AO/AA SPAD

3.3 Issue Notice of Approval (NOA) of Lease subject to conformity of the Lessee

None 2 Banking Days

AO/AA SPAD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

4. Submit the duly signed NOA within Bank’s specified period

4.1 Request for review of the Contract of Lease (COL)


Legal Sufficiency

Prepare issue legal sufficiency COL

None 3 Banking

Days, 3

Hours for

simple

transaction

7 Banking Days, 3

Hours for complex

transactions

Legal Officer Legal Services Group

(LSG)

4.2 Finalize and sign the COL and send to Lessee

None 1 Banking Day

AO/AA SPAD

5. Sign, facilitate notarization of the Lessee’s Acknowledgment portion and return to the SPAD the whole document

5.1 Facilitate notarization of the Bank’s Acknowledg-ment portion

None 1 Banking Day

AO/AA SPAD

Notarization COL

5.2 Notarize and return COL to SPAD

None 1 Banking Day

Legal Officer LSG

5.3 Issue Authority to Move In to Lessee

None 1 Banking Day

AO/AA SPAD


6 Hours

11. Loan Availment – Loan Counseling and Approval

Loan Counseling and Approval involves client orientation, evaluation and

securing loan approval of a financing loan from the Bank






See Annex A See Annex A


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Go to the nearest Lending Unit (LU) to inquire how to apply for a loan fit for your financial needs (may also inquire through telephone call, email, or website).

1.1 Interview the client about his/her financial needs

None 30 Minutes Account Officer/ Account Assistant



1.2 Orient the

client about loan requirements and applicable lending policies and standard fees


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1.3 Provide the client with the Loan Application Form and Checklist of Requirements

None AO/AA Head Office Lending


1.4 Advise the client where to submit his/her application and loan requirements



2. Accomplish the Loan Application Form and complete the required documents and payment fees for submission to the concerned LU

2.1 Review the completeness of the filled-out Loan Application Form

See Annex B

30 Minutes

AO/AA

Head Office Lending Unit or Provincial Lending Center

2.2 Verify if all the required documents submitted are complete



2.3 Accepts the properly filled-out application form and complete documents




FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

3. Wait for the Notice of Loan Approval (if approved) or Denial (if disapproved) from the Bank

3.1 Evaluate the loan application and documents submitted

None 1 Hour



3.2 Prepare request for Credit Information/ Background Information (CI/BI) and Property Appraisal



Request for CI/BI Services from LU

10 Banking Days

(simulta-neous with Property

Appraisal)

CTIMU 1 - Administrative

Assistant; Administrative Analyst

Property Valuation and Credit Information Department (PVCID)

Evaluate completeness of required documents; Conduct CI/BI; Prepare, Approve and Release report

None Credit Information Analyst; Credit

Information Specialist; Team Head

PVCID


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

Request for Property Appraisal from LU

CTIMU-1 Administrative

Assistant PVCID

Evaluate completeness of required documents; Conduct Property Appraisal; Prepare, Approve and Release report


(simulta-neous with

CI/BI)

Property Appraiser/ Property Valuation Specialist; Team Head; Unit Head; Department Head

PVCID

Sector Head Corporate Services

Sector

(Hierarchy of approval of the report shall vary

depending on the estimated value of the

property)

3.3 Prepare Term Sheet for Large Corporate Accounts, LGUs, GOCCs, SUCs and FIs

None 2 Banking Days

AO Head Office Lending


3.4 Conduct Site Visit

None 1 Banking Day

AO/LU Head Head Office Lending


Conduct Operations Review for Cooperatives

None (3 Banking Days)

AO/LU Head Head Office Lending



FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

Request for Credit Rating from LU

Validate data against supporting documents; Upload data in Credit Risk engine System; Generate and Transmit credit rating to LU

None 5 Banking Days

Risk Management Analyst/Risk Management

Specialist 1;Unit Head; Department

Head, CRMD

3.5 Prepare Spreadsheet (Historical and Projected), Revenue and Expense Summary (RES) (Actual and Projected), Basic Business Information (BBI) and other related documents and reports (i.e. Real Estate Stress Test, DOSRI Ceiling,etc.)

None 2 Banking Days

Account Assistant Head Office Lending


3.6 Prepare Credit Facility Proposal (CFP)

None 5 Banking Days



3.7 Review CFP None 1 Banking Day

LU Head Head Office Lending



FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

3.8 Finalize CFP with the approval/ signature of the LU Head

None 1 Banking Day/

6 Banking Days/

11 Banking Days/16 Banking Days/

26 Banking Days

(Processing time shall

vary depending on the amount of

the loan availed and approval)

AO 1st level 2nd level 3rd level 4th level 5th level

(Hierarchy of approval of the loan shall vary

depending on the amount of the loan

availed)

3.9 Prepare and send Notice of Loan Approval to the borrower

None 1 Banking Day




2 Hours (additional 3 Banking Days for

Cooperative Borrowers)

12. Loan Availment - Loan Documentation and Crediting of Loan

Proceeds

Loan documentation and crediting of loan proceeds commences subsequent to

loan approval. It refers to the process that commits into writing the grant of the

credit or loan by the Bank and the borrower’s concurrence to the terms and

conditions imposed by the Bank.




Who may avail: Government to Citizen - Small Farmers and Fishers - Overseas Filipino Workers (OFW) - Consumer Client Government to Business - Cooperatives - Small and Medium Enterprises - Large Corporations - Water Districts - Banks - Non-Bank Financial Institutions (FIs) Government to Government - Local Government Units (LGUs) - Government Owned and Controlled Corporations (GOCCs) - Government Agencies (GAs) - State Colleges and Universities (SUCs)



FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Sign and send back Notice of Loan Approval (NOLA) and submit/comply with pre-release documents

1.1 Examine the documents and request for legal review of loan documents

None 1 Banking Day

Account Officer/ Account Assistant




FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1.2 Draft loan documents for legal review

None 1 Banking Day



1.3 Conduct of Legal Review of loan documents


Legal Officer Banking Legal

Services Department (BLSD)/Field Legal

Unit

1.4 Coordinate with client for signing of loan documents

None 2 Hours AO/AA Head Office Lending


2. Go to the Lending Unit (LU)to sign loan documents and secure notarization of the applicable documents

2.1 Sign loan documents and notarize applicable documents

None 1 Hour AO/AA, Head Head Office Lending


Legal Officer

BLSD/Field Legal Unit

2.2 Request for legal sufficiency of the applicable loan documents

None AO/AA, Head Head Office Lending



FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

Request for Legal Sufficiency from LU

Review of related documents and issuance of Memo/ Certificate of Legal Sufficiency

None 7 Banking Days and 3 Hours

Legal Assistant, Field Attorney,

Area Legal Manager Field Legal Services Unit/Area Legal Unit

3. Verify LBP deposit account if loan proceeds net of other fees such as handling fees and commitment fees have been credited

3.1 Process loan release (after compliance of pre-release requirements, if any)

None 3 Banking Days

AO/AA, Head Head Office Lending


Note: For FIs & Micro FIs secured by assignment of sub- Promissory Notes (PNS), conduct verification of sub-PNs amounting to P1M and above prior to every loan release


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

3.2 Provide client with loan amortization schedule and copies of the loan documents (e.g., Loan Agreement, PN, Disclosure Statement, Real Estate Mortgage)

None AO/AA, Head Head Office Lending


3.3 Request Accounting Unit Concerned for the Certification of Outstanding Balances/ Availment/ Statement of Account (SOA)

None AO/AA, LU Head Head Office Lending


Request for Certification of Outstanding Balance/ Availment/SOA from LU

Certify the outstanding balance/ availment of the borrower

None Accounting Center Head

Accounting Center

Loan Processor;

Assistant Division

Chief; Division Chief;

Assistant Department

Manager

Loans Implementation Department (LID)


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

3.4 Instruct Branch for the crediting of the loan proceeds

None LU Head Head Office Lending


Instruction from LU to credit loan proceeds

Credit loan proceeds

None Bookkeeper Branch


6 Hours

Annex A

CLIENT BASIC REQUIREMENTS WHERE TO

SECURE

Small Farmers and Fishers (AFFORD)

Original copy of the following documents from Service Conduits, Bureau of Soils and Water Management (BSWM)* National Irrigation Administration (NIA)* and Agricultural Training Institute (ATI): - Designated authorized signatories indicating the name, scope and authority and contact details; and - Three (3) specimen signatures of the designated signatories * For Palay only

Service Conduits

Certified list of farmers from ATI that have completed the Creditworthiness Training, including the date of actual conduct of training

ATI

Endorsement and certification that: - For Palay – the endorsing Irrigators Association(IA) or Small water Irrigation System Association (SWISA) is in good standing to be issued by NIA or BSWM, respectively, and; - For Corn – The endorsing FA is in good standing to be issued by Philippine Maize Federation, Inc. (PHILMAIZE), LGU/MAO or DA RFO

NIA/BSWM PHILMAIZE, LGU/MAO or DA RFO

Endorsement of farmers by participating Service Conduits together with the following: - Certification from the service conduit that the farmer applicant is the actual tiller of the land and has no existing loan for palay and corn production, as the case may be; and - Summary of the farmer availing of the Loan containing the following information: name of farmer, Address, location of the farm, hectarage, amount of loan being applied

Service Conduits

Original land title or any proof of ownership for other properties/assets acceptable to LANDBANK such as certificate of registration, certificate of large cattle, etc.

Land Registration Authority

Farm Plan and budget Borrower


SECURE

Copy of purchase order or marketing contract with: - For Palay – NFA or other reliable buyers, if applicable - For Corn – Reliable buyers as endorsed by the Corn Board

Borrower

Certificate of trainings attended on the Program or similar extension and training services on the subject, conducted by ATI, other DA concerned agencies and/or the LGUs

Copy of the duly signed Management Agreement between the Service Conduit and farmer

Service Conduit

Consumer Client (Mortgage Loan)

Duly accomplished Application Form Borrower

Latest Certificate/Contract of Income and Employment

Employer of Borrower

Pay slips (last 2 pay periods)

Latest Income Tax Return BIR

Marriage Contract, if applicable PSA

POEA validated Exit Pass (for seaman) POEA

SPA with Phil. Embassy (if applicant is abroad at the time of application)

Philippine Embassy

If with business: - BIR-stamped Audited Financial Statements (latest) - Business Permit - DTI Registration (if sole proprietorship) - Letter of Intent, SEC Registration/Articles of Incorporation & By-Laws (if partnership or corporation) - Partnership/Corporate Board Resolution to borrow and authorized signatories - Business Profile

BIR BIR DTI Borrower

For Appraisal: - Copy of TCT/CCT - Lot plan with vicinity map certified by a Geodetic Engineer - Tax Declaration of lot and/or improvements - Contract to Sell (CTS), if applicable - Real Estate Tax Receipt and Tax Clearance - Masters of Restriction & Diagrammatic Plan (for condominium only)

Borrower


SECURE

Consumer Client (Easy Home Loan and End Buyers Financing Tie-up)

Duly accomplished Application Form Borrower

Latest pay-slip indicating net take home pay Employer of Borrower

Marriage Contract, if applicable PSA

Certificate of Employment indicating compensation (if employment)

Employer of Borrower

2 latest Billing Statements Borrower

If with business: - Business Registration and Licenses - BIR stamped Financial Statements and Income Tax Return for the last 3 years

BIR

For Appraisal: - Copy of TCT/CCT

Borrower

Consumer Client (Easy Home Loan and End Buyers Financing Tie-up)

OWWA certification that the borrower is a bonafide overseas worker

OWWA

Special Power of Attorney (SPA), if applicable (For those not in the Philippines, SPA must be duly authenticated by the consul)

Borrower

Two valid IDs with signature

Duly filled-out Application Form [with Statement of Assets and Liabilities (SAL)]

Business (including Financial Projections, Source of Equity, List of Suppliers/Markets or Buyers and Contact Numbers)

Barangay Certification as to residency in relation to given address

Barangay of residence of client

Proof of billing address (Meralco, Water, Phone, Cable, Internet, etc.)

Borrower

Sketch of place of residence

Financial Institutions

Letter of Application indicating the type of credit facility/loan and amount of loan being applied for (and where possible, the application form shall be prepared in the CFI’s stationery)

Board Resolution duly signed by the Board of Directors (BOD) authorizing the CFI to borrow funds, negotiate and enter into agreement with the Bank and designating at least two (2) officers authorized to sign all papers


SECURE

List of incumbent Members of the BOD and principal officers indicating therein their respective education attainment and work experience as of recent date

Borrower

List of existing principal shareholders and their stockholdings (with 10%) or more total shares

Brief Company Profile

Articles of Incorporation/Corporation and By-laws including amendments thereto, if any

Certificate of Registration (with SEC) and Certificate of Authority to Operate from the BSP (for new applicant only)

For projects involving constructions: Cost Estimates, Plans and Specifications, Bill of Materials and Work Program/Schedule

Copy of year-end latest quarterly RBCAR Report as submitted to BSP (to determine its compliance to certain RAAC, such as capital, RBCAR and Tier-1 Based Ratio)

Copy of Updated Income Tax Return (ITR), duly stamped as received by the Bureau of Internal Revenue, together with the supporting financial statements, as applicable per BSP Circular No. 855, s. of 2014.

BIR

Large Corporations

Three (3) years track record Borrower

Profitable operations for the past three (3) years

No ownership dispute for the past three (3) years

No labor dispute for the past three (3) years

Credit facilities of multinational companies may be packaged provided they are labor intensive and/or export-oriented, as well as business ventures and projects with evident socio-economic impact that is highly beneficial to the company

Company and stockholders/officers of good credit standing (i.e., no adverse finding)

D:E ratio is within the 75:25 benchmark

Annual Percentage Rate (APR) of 3%


SECURE

Microfinance Certified true copy of the Certificate of Registration with CDA, in case of coops; BSP and SEC, in case of CFIs; and SEC, in case of NGOs

CDA

Certified true copy of Articles of Cooperation (for Coops), and Articles of Incorporation (for CFIs and NGOs)

Information Sheet of the Board of Directors and Officers

Borrower

Board Resolution authorizing the MFI to borrow, and designating at least two (2) officers to negotiate loan with LBP and sign loan documents with their specimen signature and pictures

Audited FS for the last 3 years plus latest Interim FS at the time of application

Cooperatives Audited Financial Statement (FS) for 3 years, or interim financial statement for new cooperatives

Borrower

Photocopy of registration with Articles of Cooperation and Bylaws;

Certified list of Board of Directors and Core Management Team (COMAT) with bio-data and ID pictures

Certified by the Board Secretary and attested by the Cooperative’s Chairperson

BODs’ and COMATs educational attainment and years in the cooperative will be included.

Board resolution authorizing the cooperative to borrow (stating the amount and purpose of loan) and designating at least two (2) officers to negotiate and sign loan documents

Submission of the master list of members of the registered coop, duly certified by the Coop’s Manager and Secretary

Audited financial statements for the last three (3) years and jor interim financial statements (for new cooperatives)

Copy of CDA registration CDA


SECURE

Micro, Small and Medium Enterprises

Photocopy of Certificate of Registration with DTI, SEC or BOI

DTI, SEC or BOI

CTC of Articles of Incorporation/Partnership and By-Laws

Notarized Board Resolution authorizing the management to obtain loan from LBP and designating the authorized signatories

Borrower

Notarized list of the following: - Officers - Partners (partnerships only)

- Board of Directors (corporations only) - Principal Stockholders and their stockholding (corporations only)

Bio-data of borrowers/ proprietors, partners, key officers and BOD

Sworn Statement of Assets and Liabilities of borrowers/ proprietors, partners, key officers, and Board of Directors

Photocopy of ITR and audited (BIR-received) FS (last 3 years)

Latest interim financial statements

Projected income statement, balance sheet, and cash flow statement with basic assumptions

Brief history of business

Local Government Unit (LGUs)

Sanggunian Resolution - Authorizing the local Chief Executive (LCE) to borrow funds, negotiate and enter into a loan agreement with LBP; - Authorizing the LCE to sign, endorse loan documents, mortgages, deed of assignments, agreements, notes, and other documents pertaining to the loan obtained from LBP; and

Borrower


SECURE

- Approving the projects to be financed and these are in accordance with the approved local development plan and public investment program or approved annual procurement/investment program;

Borrower

COA Audited Financial Statements preferably for the past 3 years and latest interim FS;

COA

Approved budget for the current year; Borrower

Ordinance approving the Local Development Plan/Annual Investment Program

List of elected officials and key officers

Feasibility Study (whenever applicable)

Schedule of LGU’s IRA for the past 2 years

For projects involving construction: Cost Estimates, Plans and Specifications, Bill of Materials and Work Program/ Schedule duly approved by the LCE

For acquisition of machinery and equipment, quotation from supplier/s

Certification on the local school board budget for the current year in cases where SEF is to be assigned for construction, improvement or repair of public schools

Government-Owned and Controlled Corporations

Office of the President approval/clearance to apply for a loan

Borrower

MB Opinion MB

No adverse finding Borrower

Profitability track record of at least 3 years

Maximum D:E ratio 75:25

APR of 3%

State Universities and Colleges (SUCs)

Monetary Board Opinion Borrower

Audited FS for the last 3 years

Board Resolution to borrow

Approved budget for the current year

List of Officials

Copy of SUC’s strategic plan

Setting-up of Project Implementation Structure (for stand-alone projects)


SECURE

Water Districts Conditional Certificate of Conformance issued by LWUA

LWUA

COA audited financial statements for the past three years

COA

Board Resolution authorizing an officer of the water district to negotiate, borrow, mortgage, sign, and enter into a loan agreement with LBP

Borrower

Feasibility Study, WD Development Plan and Program of Work approved by LWUA or reviewed and approved by LBP

LWUA

Monetary Board Opinion (MBO) issued by BSP’s Monetary Board on the monetary and balance of payments implications of proposed domestic borrowings by LGUs and Government Entities as per provisions of Section 123 of R.A. No. 7653

BSP

Clearance from LWUA allowing the water district to secure a loan from LANDBANK

LWUA

Government Agencies

Real Estate Mortgage (REM) on real properties and improvements

Borrower

Chattel Mortgage (CM) on machinery and equipment

Hold out on deposits

Assignment of Inventories, receivables, LCs, POs, guarantee cover

Annex B

FEES TO BE PAID

For commercial loan account (except OFW) payment of application and appraisal fees will be collected in advance upon filing of loan application:

Application fee for:

• New Customer: ₱2,000 • Renewal: ₱1,000

Contiguous lots with various titles shall be charged ₱1,000 appraisal fee.

For mortgage loans

Appraisal fee of: • ₱5,000 for regular/walk-in clients

• ₱3,500.00 for acquisition from developers without MOA • ₱2,500.00 for acquisition from developers with MOA

13. Negotiation of Letters of Credit (Payment to Beneficiary)

Upon receipt of the Shipping Documents from our correspondent bank, the Bank

shall examine the same with reasonable care to ensure compliance with the terms and conditions of the Letters of Credit (L/C). If the documents evidencing shipment are found in order, the Bank shall book IB and effect payment/reimbursement to the paying/correspondent bank, if applicable. Upon client’s/importer’s payment of IB, the Bank shall turn over the documents to the client/importer who shall present the same to the shipping/airline company to take possession of the goods or to cancel shipping guaranty issued by the Bank.

Upon receipt of the documents from the beneficiary/seller, the Bank shall

examine the same with reasonable care to ensure compliance with the terms and conditions of the domestic L/C. If the documents evidencing delivery are found in order, the Bank shall book DB and effect payment directly to the beneficiary.

Office or Division: Public Sector Department (PSD)


Type of Transaction: G2G – Government to Government

Who may avail: - Local Government Units (LGUs) - Government Owned and Controlled Corporations (GOCCs) - Government Agencies (GAs) - State Colleges and Universities (SUCs) - National Government Agencies




FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Applicant – Send L/C negotiation documents as required by applicant in L/C payment

1.1 Receive or pick-up L/C negotiation requirements and checks/ verify complete-ness of submitted documents

None 1 Banking Day


(AO/AA) PSD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1.2 Endorse/ forward documents to International Trade Department (ITD)

None AO/AA PSD

1.3 Process non-L/C transactions

See Annex B

1 Hour, 15 Minutes

Document Specialist Assistant Department

Manager ITD

1.4 Send the copy of Society for Worldwide Interbank Financial Telecommunication payment to via e-mail or fax applicant, copy furnished, the beneficiary

None

5 Minutes AO/AA PSD

TOTAL

See Annex B

1 Banking Day,

1 Hour, 20 Minutes

Annex A


For Local Government Unit (LGU) 1. Original or duplicate copy of

Resolution (w/ official seal) stating therein the authorized signatory/ies in the opening of Letter/s of Credit with the Land Bank of the Phils. (LBP) signed by the majority of Council Members and approved by the Head Local Government Unit

Client-initiated document

2. For Commercial L/C: Signed Firm Offer/Pro-forma Invoice and; For Foreign and Domestic Standby L/C; Bid/contract copy for Standby L/C/Performance Guarantee

3. Application and Agreement for Commercial Letter of Credit (3 copies)

International Trade Department

4. Duly accomplished Application to Purchase Foreign Exchange (FX) form (1 copy)

5. P.D. 1466 for Govt. Importation (Foreign L/C) (1 copy)

6. Signature Card (1 copy) Treasury Operations Department-Central Communications Unit

7. Single Administrative Documents (SAD) for foreign LC only (1 copy)

Bureau of Customs

8. Proof of exemption from Payment of Custom Duties (Foreign L/C), if applicable (1 copy)

Department of Finance

9. Clearance for Government importation (Foreign L/C) (1 copy)

Department of Trade and Industry - Fair Trade Enforcement Bureau – Import Regulation Division


For Government Agency 1. Certification of the Head of

Agency/Undersecretary as to the authorized signatory/ies in the opening of L/C with Landbank.


2. Appointment paper of the authorized signatory duly signed by the President of the Republic of the Phils.

3. For Commercial L/C: Signed Firm Offer / Pro-forma Invoice and; For Foreign and Domestic Standby L/C; Bid/contract copy for Standby LC/Performance Guarantee





7. Signature Card (1 copy) Treasury Operations Department-Central Communications Unit (TOD-CCU)

8. Single Administrative Documents (SAD) for foreign L/C only

Bureau of Customs




Department of Trade and Industry - Fair Trade

Enforcement Bureau – Import Regulation Division

Annex B

FEES TO BE PAID

1. Processing of Direct Import Remittance (DIR) a. Commission - 1/8 of 1% of principal amount; minimum of PHP1,000 b. Swift Cost - PHP500 or USD30 c. Documentary Stamps – PHP 0.60 for every PHP 200 d. FX Bank’s fees USD15 for USD wire

GBP13 for GBP wire

SGD25 for SGD wire

AUD22 for AUD wire

JPY5,500 for JPY wire

EUR45 for EUR wire 2. Processing of Domestic Bills (DB)

a. Documentary Stamps – P0.60 for every PHP 200 based on the Bank Draft

amount

b. If proceed is via RTGS:

RTGS Fee - PHP150

Ad Valorem – bank draft Amount x 0.00001, minimum of PHP10 maximum of PHP400

Swift Cost- PHP300 c. If USD domestic L/C via GSRT/ PDDTS

SWIFT Cost - USD10

GSRT/ PDDTS Fee - USD3

Handling Commission -¼ of 1% minimum USD25

3. Processing of Open Account (O/A) a. Commission - ¼ of 1% of collection amount; minimum of P1,000.00

b. Swift Cost - P500.00 or USD30.00

c. Documentary Stamps - P0.60 for every P200.00

d. FX Bank’s fees

USD15 for USD wire

GBP13 for GBP wire

SGD25 for SGD wire

AUD22 for AUD wire


EUR45 for EUR wire

14. Opening of Letters of Credit (Cash)/Stand-by Letters of Credit

A commercial Letters of Credit (L/C) is a trade payment method in which a written financial document is issued by a buyer’s bank, in favor of a seller, authorizing the seller to request payment of goods and services in accordance with certain conditions and terms. An L/C guarantees the seller’s immediate payment or payment in the future if the seller requests payment and presents documents that absolutely conform to the L/C requirements. It also provides financing opportunities for both import and export transactions.

A Stand-by Letters of Credit (SBYLC) is an undertaking issued by the Bank on

behalf of its client that payment will be made to a beneficiary in the event that the client does not make good its obligation. It is normally drawn only if the Bank’s client (account party) is in default in one of the following:

1. Payment of a note, loan or advances 2. Performance under a bid or contract 3. Bidding requirements


Classification: Complex






FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Obtain fund (L/C Cover) from Applicant via check or debit from Applicant’s account

1.1 Receive debit letter or pick-up check from Applicant

None 1 Banking Day


(AO/AA) PSD

1.2 Endorse documents to International Trade Department (ITD)

None AO/AA PSD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1.3 Examine documents and process the funding for Applicant



ITD

2. Accomplish and submit Bank's L/C application form and other L/C opening documentary requirements

e.g.,PD1466 Certification, Fair Trade Enforcement Bureau Certification, Application to Purchase Foreign Exchange, Pro-forma Invoice and Single Admin Document

2.1 Receive or pick-up L/C opening requirements from Applicant and check/verify completeness of submitted documents

None

3 Banking Days

AO/AA PSD

2.2 Request from ITD the applicable computation/ billing for the L/C opening charges

None 30 Minutes AO/AA PSD

2.3 Prepare billing statement for L/C opening charges

None 10 Minutes Document Specialist ITD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

2.4 Send the billing statement for L/C opening charges via e-mail or fax to Applicant, copy furnished, the beneficiary


3. Settle the Bank charges at any LBP branch (for domestic commercial) or via Standard Chartered Bank New York or any depository bank of LBP abroad (for foreign commercial)

3.1 Inform ITD that L/C opening charges have been paid

Applicable L/C

opening charges

The opening charges

on approved L/Cs shall be com-puted as recom-mended

by the LU con-

cerned.

Said charges

shall include bank

commis-sion and

docu-mentary stamps, among others

3 Banking Days

AO/AA PSD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

3.2 Process payment of charges and release L/C copy

None 50 Minutes Assistant Department Manager,

Assistant Vice President

ITD

3.3 Send copy of

Society for Worldwide Interbank Financial Telecommunication cable of

foreign L/C or copy of irrevocable L/C for domestic L/C via e-mail or fax


TOTAL Appli-cable L/C opening charges

+

Bank commis-sion and


7 Banking Days,

2 Hours, 55 Minutes

Annex A



Resolution (w/ official seal) stating therein the authorized signatory/ies in the opening of L/C with the Land Bank of the Phils. (LBP) signed by the majority of Council Members and approved by the Head Local Government Unit


2. For Commercial L/C: Signed Firm Offer / Pro-forma Invoice and; For Foreign and Domestic Standby L/C; Bid/contract copy for Standby L/C/Performance Guarantee

3. Application and Agreement for Commercial L/C (3 copies)





7. Single Administrative Documents (SAD) for foreign L/C only(1 copy)

Bureau of Customs



9. Clearance for Government importation (Foreign LC) (1 copy)




Agency/Undersecretary as to the authorized signatory/ies in the opening of L/C with Landbank








7. Signature Card (1 copy) Treasury Operations Department-Central Communications Unit (TOD-CCU)

8. Single Administrative Documents (SAD) for foreign LC only

Bureau of Customs






15. Partial Release of Collaterals In meritorious cases, borrower may request for the partial release of collaterals. Loan Recovery Department shall then evaluate borrower’s request and present before the appropriate approving authorities of the LBP for consideration. Consistent with the LBP’s commitment to the GCG, Loan Recovery Department endeavors to formally notify borrower of the LBP management’s decision within 45 days from receipt of complete documentary requirements.

Office or Division: Loan Recovery Department (LRD)



Who may avail: Borrowers whose loans are being managed by the LRD


Written request (1 copy) Borrower

For person/s authorized by borrower to

receive collateral documents, documents

delegating such authority (SPA,

secretary’s certificate, board resolution,

etc.) (1 copy)

Borrower

KYC documents of borrower or his/her/its

authorized representative (valid ID)

(1 copy)

Persons mentioned

CLIENT STEPS AGENCY

ACTIONS

FEES TO

BE PAID

PROCESSING

TIME

PERSON

RESPONSIBLE

1. Submit request 1. Evaluate

request and

determine

take-out value

of collaterals

requested for

release

Standard

fees per

Credit

Policy

Issuance

3 Banking

Days

Account Officer (AO) LRD

2. Wait for the Notice

of Loan Approval

(if approved) or

Denial (if

disapproved) from

the Bank

2.1 If borrower

passed the

evaluation

criteria,

prepare and

recommend the

credit

proposal1/

None 45 Banking

Days from

date of

submission of

complete

documents

Account Assistant (AA)/AO,

Department Head LRD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

2.2 Send notice of

approval. If

disapproved,

send notice of

denial

None 1 Banking

Day

AO/AA, Department Head

LRD

3. Remit take-out

value

3.1 Prepare

cancellation of

mortgage

document and

request

notarization of

cancellation of

mortgage

document with

Legal Services

Group (LSG)

None 1 Banking

Day


LRD

3.2 Notarize

documents

None

1 Banking

Day

Legal Officer

LSG

4. Present authority

to receive

collateral and/or

valid ID

4. Release

collateral

documents

together with

notarized

cancellation of

mortgage

None 1 Banking

Day

AO/AA, LRD

TOTAL Standard

fees per

Credit

Policy

Issuance

52 Banking

Days

1/ In case of partial release due to loan take-out by other financial institutions, Loan Recovery Department shall

facilitate borrowing of title with Loans Implementation Department and annotation of mortgage of other Financial

Institution in coordination with BLSD which may take 15 to 45 Banking Days from date of submission of complete

documents. Further and if the computed take-out value exceeds the amount guaranteed by the HDMF/other financial

institution as indicated in its Letter of Guarantee, borrower must agree to shoulder such excess amount otherwise the

request for release of collaterals shall be denied outright.

16. Processing of Outgoing Telegraphic Transfer related to Trade

Transaction

Outgoing Foreign Telegraphic transaction provides payment to various beneficiaries (individual or corporate). A mean of fund transfer either in international or local using bank-to-bank electronic system. Payments are made either in local currency or multi-currency. Globally, delivery of payment is fast, safe and reliable.



Type of Transaction: G2B – Government to Government





FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Submit to the Bank the shipping documents and other require-ments for Direct Payment

1.1 Receive or pick-up Outgoing Telegraphic Transfer requirements and checks/verify completeness of submitted documents

None 1 Banking Day


(AO/AA) PSD

1.2 Endorse documents to International Trade Department (ITD)

None AA/AO PSD

1.3 Process non-L/C transactions

See Annex B

1 Hour, 15 Minutes

Document Specialist Assistant Department

Manager International Trade

Department


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1.4 Send the copy of Society for Worldwide Interbank Financial Telecommunication cable copy via e-mail or fax to applicant

None

5 Minutes AO/AA PSD

TOTAL

See Annex B

1 Banking Day,

1 Hour, 20 Minutes

Annex A



Resolution (w/ official seal) stating therein the authorized signatory/ies in the opening of Letter/s of Credit with the Land Bank of the Phils. (LBP) signed by the majority of Council Members and approved by the Head Local Government Unit.








7. Single Administrative Documents (SAD) for foreign L/C only (1 copy)

Bureau of Customs







Agency/Undersecretary as to the authorized signatory/ies in the opening of L/C with Landbank



3. For Commercial LC: Signed Firm Offer / Pro-forma Invoice and; For Foreign and Domestic Standby LC; Bid/contract copy for Standby LC/Performance Guarantee




6. P.D. 1466 for Govt. Importation (Foreign LC) (1 copy)

7. Signature Card (1 copy) Treasury Operations Department-Central Communications Unit(TOD-CCU)

8. Single Administrative Documents (SAD) for foreign LC only

Bureau of Customs






Annex B

FEES TO BE PAID


GBP13 for GBP wire

SGD25 for SGD wire

AUD22 for AUD wire




amount


RTGS Fee - PHP150



SWIFT Cost - USD10



3. Processing of Open Account (O/A) a. Commission - ¼ of 1% of collection amount; minimum of P1,000.00 b. Swift Cost - P500.00 or USD30.00 c. Documentary Stamps - P0.60 for every P200.00 d. FX Bank’s fees

USD15 for USD wire

GBP13 for GBP wire

SGD25 for SGD wire

AUD22 for AUD wire


EUR45 for EUR wire

17. Release of Collaterals As a Result of Full Payment

Loan Recovery Department shall facilitate the release of collaterals within seven

(7) days from date of full payment of borrower.






Full payment Borrower





etc.) (1 copy)

Borrower


authorized representative (valid ID) (1

copy)

Persons mentioned


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Remit full payment 1.1 Request for

Certificate of

Full Payment

and retrieval of

collateral titles

and other loan

documents

from Loans

Implementation

Department

(LID)

None

1 Hour


(AO/AA) LRD

1.2 Issue Certifi-cate of full payment and forward the collateral titles and other loan documents to LRD

None

2 Hours



Department Manager LID


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1.3 Prepare

cancellation of

mortgage

document and

request

notarization of

cancellation of

mortgage

document with

Legal Services

Group (LSG)

None 1 Banking

Day


LRD

1.4 Notarize

documents

None 1 Banking

Day

Legal Officer

LSG


to receive

collateral and/or

valid ID

2. Release

collateral

documents

together with

notarized

cancellation of

mortgage

None 1 Banking

Day

AA/AO LRD

TOTAL

None

3 Banking

Days,

3 Hours

18. Release of Collaterals via Loan Take-out (Full Payment) by other


Borrowers may negotiate with other financial institutions (FIs) to take-out their

loans with LBP. In which case, Loan Recovery Department (LRD) shall facilitate

the release of collaterals within seven (7) days from date of full remittance of

take-out proceeds.







Letter of Guarantee issued by other

Financial Institutions (1 copy) Other Financial Institutions (FIs)





etc.) (1 copy)

Borrower



(1 copy)

Persons mentioned


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Submit request

together with

Letter of

Guarantee

1.1 Evaluate

request and

inform

borrower if LBP

is amenable to

the terms of the

Letter of

Guarantee

and/or propose

revised terms

acceptable to

the LBP

None 3 Banking

Days

Account Officer (AO) LRD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1.2 Facilitate

borrowing of

title with Loans

Implementation

Department

(LID) and

annotation of

mortgage of

other FI in

coordination

with Legal

Services Group

(LSG)

None 45 Banking

Days from

date of

submission of

complete

documents

Account Assistant (AA)/AO

LRD

2. Remit take-out

value

2.1 Prepare

cancellation of

mortgage

document and

request

notarization

None 1 Banking

Day


LRD

2.2 Notarize

documents

None 1 Banking

Day

Legal Officer

LSG


to receive

collateral and/or

valid ID

3 Release

collateral

documents

together with

notarized

cancellation of

mortgage

None 1 Banking

Day

AA/AO LRD

TOTAL None 51 Banking

Days

19. Release of Underlying Collaterals for LBP-rediscounted Loan

Obligations of Borrowers of Closed Banks Under PDIC

Receivership/Liquidation

Loan Recovery Department shall facilitate the release of collaterals within seven (7) days from date of full payment of sub-borrower.




Who may avail: Sub-Borrowers whose loans are being managed by the LRD


Full payment Sub-Borrower

Affidavit of Non-remittance, as applicable (1 copy)

PDIC

Certificate of Full Payment or Certificate of No Outstanding Balance as of RB Closure (1 copy)

PDIC

Authorization Letter indicating the authorized recipient/s of the collateral documents (1 copy)

PDIC

For person/s authorized by borrower to receive collateral documents, documents delegating such authority (SPA, secretary’s certificate, board resolution, etc.) (1 copy)

Sub-Borrower

KYC documents of borrower or his/her/its authorized representative (valid ID) (1 copy)

Persons mentioned


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Remit full payment and request for release of collateral

1.1 Validate payment and request retrieval of collateral documents from Loans Implementation Department (LID)

None 2 Banking Days


(AO/AA) LRD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1.2 Retrieve

documents and

forward to LRD

None 7 Hours Loan Processor,

Division Chief, Assistant Department

Manager

LID

1.3 Prepare

transmittal

letter

addressed to

the PDIC-

authorized

person

None 1 Banking

Day

AO,Department Head LRD


to receive

collateral and/or

valid ID

2. Release

collateral

documents

None 1 Banking

Day

AA/AO LRD


Days,

7 Hours

20. Requests for Certifications

Borrowers may request for certifications (e.g., account status, outstanding

balance, etc.).








receive the requested certifications,

documents delegating such authority

(SPA, secretary’s certificate, board

resolution, etc.) (1 copy)

Borrower



(1 copy)

Persons mentioned

CLIENT STEPS AGENCY

ACTIONS

FEES TO

BE PAID

PROCESSING

TIME

PERSON

RESPONSIBLE

1. Submit request 1. Prepare

requested

certifications

Requests

coursed

through

LRD for

certification

that will

have to be

prepared

by other

units of the

LBP (i.e.,

re-issuance

of

Certificate

of Full

Payment,

etc.)

2 Banking

Days


(AO/AA) LRD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

may be

subject to

process-

sing fee

as deter-

mined by

such other

LBP units


to receive

collateral and/or

valid ID

2. Release

requested

certifications

None 1 Banking

Day

AO/AA LRD

TOTAL Applicable

Fees

3 Banking

Days

21. Settlement of LBP-rediscounted Loan Obligations of Borrowers

of Closed Banks Under PDIC Receivership/Liquidation

Borrowers of closed banks under PDIC receivership/liquidation may propose for the orderly settlement of their LBP-rediscounted loans (e.g., compromise settlement). Loan Recovery Department then evaluates sub-borrower’s settlement proposal and facilitates its approval/denial before the appropriate approving authorities of the LBP. Loan Recovery Department endeavors to formally notify borrower of the LBP management’s decision within 45 days from receipt of complete documentary requirements.




Who may avail: Sub-Borrowers of closed banks under PDIC receivership/liquidation


Written settlement proposal (1 copy) Sub-Borrower

Proof of income/source of repayment

(financial statements, ITR, purchase order,

business contracts, permits, etc.) (1 copy)

Sub-Borrower


transact in his/her/its behalf, documents



etc.) (1 copy)

Sub-Borrower

KYC documents of borrower, his/her/its

authorized representative and third party

owner of properties offered for dacion or

collateral (valid ID, articles of

incorporation, etc.) (1 copy)

Persons mentioned

Philippine Deposit Insurance Corporation

(PDIC) Statement of Account (1 copy) PDIC

CLIENT STEPS AGENCY

ACTIONS

FEES TO

BE PAID

PROCESSING

TIME

PERSON

RESPONSIBLE

1. Submit proposal

and pertinent

documents

1.1 Inform

borrower of the

appropriate

documents for

submission

depending on

borrower’s

proposal and

advise the

borrower of the

Bank’s policies

and procedures

None 2 Hours


(AO/AA) LRD

1.2 Evaluate

borrower’s

proposal vis-à-

vis the

documents

submitted

None 1 Banking

Day

AO LRD

1.3 Request for

updated

Statement of

Account with

Loans

Implementation

Department

(LID) and PDIC

and validate

the same with

PDIC1/

None 1 Banking

Day

AO/AA, LRD

1.4 Prepare

Statement of

Account




Manager LID

CLIENT STEPS AGENCY

ACTIONS

FEES TO

BE PAID

PROCESSING

TIME

PERSON

RESPONSIBLE

1.5 Request for

appraisal, as

applicable, with

Property

Valuation and

Credit

Information

Department

(PVCID)

None 1 Hour

AO/AA LRD

1.6 Prepare reports None 20 Banking

Days

Administrative

Assistant, Unit Head,

Team Head, Property

Appraiser, Property

Valuation Specialist,

Department Head,

Sector Head

(if applicable)

PVCID

1.7 Negotiate

amount to be

paid by sub-

borrower

None 1 Banking

Day

AO, Department Head LRD

1.8 Prepare and

recommend

the credit

proposal

None 45 Banking

Days from

date of

submission of

complete

documents

AO/AA, Department Head LRD

1.9 Send notice of

approval/

denial

None 1 Banking

Day

AO/AA LRD


Days,

4 Hours,

15 Minutes

1/ Timetable may vary depending on the PDIC’s response time. If sub-borrower has not yet secured a PDIC SOA,

LRD shall request the same with the PDIC. Either way, LRD shall coordinate with the PDIC within 2 working days

from receipt of settlement proposal from sub-borrower.

22. Settlement of Loan Obligations by Delinquent Borrowers

Delinquent LBP borrowers may propose for the orderly settlement of their loans (e.g., loan restructuring, dacion en pago, compromise settlement, etc.). Loan Recovery Department (LRD) shall then evaluate borrower’s settlement proposal and present before the appropriate approving authorities of the LBP for consideration. Consistent with the LBP’s commitment to the GCG, LRD endeavors to formally notify borrower of the LBP management’s decision within 45 days from receipt of complete documentary requirements.






Written settlement proposal (1 copy) Borrower

Proof of income/source of repayment

(financial statements, ITR, purchase order,

business contracts, permits, etc.) (1 copy)

Borrower

Documents evidencing absolute

ownership for properties offered for dacion

or as collateral (TCT, CCT, OCT, stock

certificates, etc.) (1 copy)

Property owner

For properties owned by person/s other

than the borrower and offered for dacion

or collateral, documents evidencing

consent and/or authority given to borrower

for the said purpose (SPA, secretary’s

certificate, board resolution, etc.) (1 copy)

Property owner


transact in his/her/its behalf, documents



etc.) (1 copy)

Borrower

KYC documents of borrower, his/her/its

authorized representative and third party

owner of properties offered for dacion or

collateral (valid ID, articles of

incorporation, etc.) (1 copy)

Persons mentioned

CLIENT STEPS AGENCY

ACTIONS

FEES TO

BE PAID

PROCESSING

TIME

PERSON

RESPONSIBLE

1. Submit proposal 1. Inform borrower of the documents for submission depending on borrower’s proposal and advise borrower of the Bank’s policies and procedures

None 2 Hours Account Officer (AO) LRD

2. Submit required documents

2.1 Evaluate1/ borrower’s proposal vis-à-vis the documents submitted

None 5 Banking Days

AO LRD

2.2 Request for updated Statement of Account with Loans Implementation Department (LID)

None 1 Hour

AO/Account Assistant (AA) LRD

2.3 Prepare Statement of Account




Manager LID

2.4 Request for credit investigation, appraisal, skip tracing and asset verifica-tion, as applicable, with PVCID

None 1 Hour

AO/AA LRD

CLIENT STEPS AGENCY

ACTIONS

FEES TO

BE PAID

PROCESSING

TIME

PERSON

RESPONSIBLE

2.5 Prepare

Reports

None 45 Banking

Days

Administrative

Assistant, Property

Appraiser, Property

Valuation Specialist,

Team Head, Unit

Head, Department

Head

PVCID

2.6 Evaluate the

PVCID’s reports

upon receipt

and discuss

with borrower

issues noted on

documents/

reports

None 1 Banking

Day

AO LRD

2.7 Conduct site

inspection at

borrower’s

place of

business and

properties

offered for

dacion or

collateral

None 1 Banking

Day


3. Wait for the Notice

of Loan approval

(if approved) or

Denial (if

disapproved) from

the Bank

3.1 If borrower

passed the

evaluation

criteria, prepare

and recommend

the credit

proposal

None 45 Banking

Days from

date of

submission of

complete

documents


CLIENT STEPS AGENCY

ACTIONS

FEES TO

BE PAID

PROCESSING

TIME

PERSON

RESPONSIBLE

3.2 Send notice of

approval. If

disapproved,

send notice of

denial

None 1 Banking

Day

AO/AA, LRD

4. Conduct loan

signing

4.1 Prepare loan

documents

and request for

review and

issuance of

certificate of

legal

sufficiency, if

applicable,

with Legal

Services

Group (LSG)

None 2 Banking

Days


4.2 Review and

issue

Certificate of

legal

sufficiency

None 7 Banking

Days,

3 Hours

Legal Officer

LSG

4.3 Facilitate the

signing of loan

documents

None 2 Hours AO/AA, Department Head LRD


2 Hours, 15 Minutes

1/ LRD may require additional documents and/or information if, in the course of its evaluation, it determines the need

for other supporting documents or information to fully validate the feasibility of borrower’s repayment proposal. Such

requirements shall be conveyed to borrower in writing.

23. Transfer of Foreclosed Agricultural Lots to the Department of

Agrarian Reform

Pursuant to Republic Act 9700 and EO 407



Type of Transaction: G2G –Government to Government

Who may avail: Department of Agrarian Reform


Notice of Coverage Department of Agrarian Reform (DAR)


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Submit the Notice of Coverage (NOC) to LBP-SPAD or Agrarian Operations Center (AOC)

1 Receive the NOC from the DAR


(AO/AA) SPAD

2. Wait for the scedule of the conduct joint inspection of the property

2.1 Coordinate with AOC for the schedule of the joint inspection and inform DAR of the same


2.2 Conduct joint inspection of the property being covered

None Paused-clock (subject to

availability of AOC and

DAR)

Processor AOC

2.3 Prepare Joint Field Investigation Report and furnish SPAD

None Paused-clock (subject to

availability of documents from DAR)

Processor; AOC


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

2.4 Receive the Joint Field Investigation Report from the AOC

None 1 Banking Day

AO/AA SPAD

2.5 Wait for the Notice of Land Valuation or memo of Valuation from DAR and other documentary requirements

None Paused-clock (dependent on DAR’s

submission)

AO/AA SPAD

3. Forward the Notice of Land Valuation to LBP-SPAD or AOC

3.1 Secure approval of the acceptance of the DAR’s valuation of the property

None 3 Banking Days

AO/AA SPAD

3.2 Coordinate with Loans Implementation Department (LID) for the booking of the transfer of properties to DAR


3.3 Book the transfer of property to DAR as Accounts Receivable – Agrarian Reform Fund

None 1 Banking Day

Loan Processor;

Division Chief;

Assistant Department

Manager; Department

Manager

LID


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

3.4 Accomplish the Notice of Land Valuation

None 3 Banking Days

AO/AA SPAD

4. DAR will take over the management of the CARP covered property

4. Continue monitoring of the remaining acquired portion of the Property, if any

None 1 Banking Day

AO/AA SPAD


3 Hours

Lending Services

Internal Services

1. Appraisal Services

Request for Appraisal of real estate properties and other collaterals

Office or Division: Property Valuation and Credit Information Department (PVCID)


Type of Transaction: G2G– Government to Government

Who may avail: Lending Units


Request for Appraisal Form with supporting documents corresponding to the request (See Annex A)

Lending Units


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Submit of duly accomplished request for appraisal

1.1 Check if documents are complete and properly filled-out

None See Annex B Administrative Assistant PVCID

1.2 Evaluate/ analyze the documents and identity appraisal problem, if any

None Property Appraiser Property Valuation

Specialist PVCID

1.3 Conduct site/ ocular inspection (Annex B)


Specialist PVCID

1.4 Prepare Appraisal Report


Specialist PVCID

1.5 Secure approval of the report


Specialist PVCID

1.6 Release approved report to client

None Administrative Assistant PVCID

TOTAL None 20 Banking Days

Annex A


A. Real estate a) Land

1) Titled a) Certificate of Title (all pages) b) Lot plan with vicinity map or

Approved Survey Plan c) Current Tax Declaration

Land Registration Authority (LRA) Bureau of Lands Assessor’s Office Registry of Deeds

2) Untitled

- Current Tax Declaration

- Approved Survey Plan

- Realty Tax Receipt

- Deed of Sale/ Donation/ Exchange, if applicable

- Extra Judicial Settlement Agreement, if applicable

- Settlement od Estate, if applicable

- Court Judgement, if applicable

Assessor’s Office Bureau of Internal Revenue (BIR) Municipal/Regional Trial Courts Land Registration Authority (LRA) Bureau of Lands

b) Building/ Improvement (Existing or Proposed)

For Existing Improvement

- As-built plan, if still available

- Latest Tax Declaration (Optional)

For Proposed Improvement

- Clear copy of complete set of building plans duly approved by the concerned LGU offices

- Bill of materials, cost estimates and specification consultancy contracts, if appliccale

Assessor’s Office Municipal/City Planning Office (LGU) Contractor (Engineer or Architect)

c) Immovable Machinaries/Equipment (Existing or Proposed)


For existing Machinery/Equipment

- Client certified list of existing equipment indicating complete technical description, serial number and other identifying marks, date, souce and cost of acquisition, power rating, capacities and encumbrance

- Plant Layout (optional) For Proposed to be Acquired Items

- List of machinery/equipment with corresponding pro-forma invoices / price qoutation Note : Exclusive dealership / distributorship should be supported by a dully notarized Certification

- Detailed Specifications

- Detailed Plant Layout/Plans

- Brochures (optional)

- Engineering and Procurement Contact (Optional)

Client/Borrower Client/Borrower

B. Special Type of Property Rights

a) Leased Land

- Certificate of Title

- Approved Survey Plan of Lot Plan with vicinity map

- Current Tax Declaration

- Duly notarized Lease Contract

Registry of Deeds Land Registration Authority (LRA) Bureau of Lands Assessor’s Office Client/Borrower

b) Condominium (all types)

- CCT

- Tax Declaration

- Master Deed with Declaration of Restriction (MDDR)

- Diagrammatic Floor Plan of the Unit (optional)

- SEC Registration of the Condominium Corporation (optional)

Registry of Deeds Land Registration Authority (LRA) Bureau of Lands Assessor’s Office Securities & Exchange Commission (SEC) Condominium Administrator


c) Lots for Proposed Subdivision Development

- Certificates of Title

- Lot plan with vicinity map or Approved Survey Plan

- Tax Declaration

- Detailed Development Plans

- Bill of Materials/Cost Estimates

- Scope of Works

- Development Permit

- HLURB Certificate of Registrartion

- License to Sell

Registry of Deeds Land Registration Authority (LRA) Bureau of Lands Assessor’s Office Housing Land Use Regulatory Board (HLURB) Mayor’s Office Contractor (Engineer/Architect)

d) Memorial Lot

- Deed of Sale

- Location Plan

- Certificate of Ownership or Registration

Securities & Exchange Commission (SEC) Assessor’s Office Client/Borrower Owner (Corporation)

e) Lots with informal settlers

- Certificate of Title

- Tax Declaration

- Lot plan with vicinity map or Approved Survey Plan

- Recolation Survey reflecting the lots are occupied by the informal settlers

- Inventory of Informal Settlers

Registry of Deeds Land Registration Authority (LRA) Assessor’s Office Bureau of Lands Barangay (for inventory of Informal Settlers)


C. Chattles

1. Movable Machinaries / Equipment (Existing or Proposed to be Acquired)

For Existing Machinery/Equipment

- Client certified list of existing equipmet, indicating complete technical description, serial numbers and other identifying marks, date, source and cost acquisition, power rating, capacities and encumbrance

- Registration papers with concerned government, such as:

For Motors Vehicles

- Certificate of Registration (CR) ; and

- Officials Receipt (optional) For Marine Vessels

- Certificate of Registration

- Certificate of Vessel Registry

- Coastwise Licence

- Other Marina issued statutory certificates (optional)

Client/Borrower Registry of Deeds Registry of Deeds Land Transportation Office (LTO) Maritime Industry Authority (MARINA)

For Aircrafts

- Certificate of Registration

- Certificate of Airworthiness

- Flight Data Statistics(optional)

- Deed of Sale

Civil Aviation Authority of the Philippines (CAAP)


For proposed to be Acquired Items

- List of machinery/equipment with corresponding pro forma invoices / price quotation

Note: Exclusive dealership/distributorship should be supported by a duly notarized Certification

- Detailed Specifications

- Brochures (optional)

- Detailed Plans / Shop Drawings (optional)

2. Livestock

- Livestock Certificate of Ownership (duly notarized)

3) Standing Crops a) Annual Crops

- Insurance Certificate/Policy

b) Perennial Crops

- Inventory List

- Insurance Certificate/Policy

- Crop planting/Layout Plan

D. Inventories

- Notarized Inventory List with descriptions and acquisition cost data

- Audited Financial Statements for the last three (3) years (optional)

E. Sugar Quedan Certificates

- Warehouse Receipts

- SRA Certification / validation for Sugar Quedans

Client/Borrower Bureau of Animal Industry Mayor’s Office Bureau of Plant Industry Philippine Crop Insurance Corporation Bureau of Plant Industry Philippine Crop Insurance Corporation Client/Borrower Local Government Unit Sugar Regulations Authority (SRA)

Annex B

AGENCY ACTIONS PROCESSING TIME TOTAL

PROCESSING TIME

Conduct site/ocular inspection REAL ESTATE PROPERTIES

Residential properties with total estimated value of up to P3M (within Metro Manila or within 50 km radius from official station)

Step 1 & 2–1 Banking Day Step 3 – 1 Banking Day Step 4-6 1 Banking Day

Total 3 Banking Days

3 Banking Days

Residential properties with total estimated value of more than P3M but not exceeding P50M

Step 1 & 2–1 Banking Day Step 3 – 4 Banking Days Step 4-6 2 Banking Day


7 Banking Days

Non-Residential properties with total estimated value up to P50M a. Commercial b. Industrial c. Agricultural d. Institutional



7 Banking Days

Residential Properties with total estimated value of More than P50M but not exceeding P100M



15 Banking Days

Non-Residential Properties: a. Commercial Properties b. Industrial Properties c. Agricultural Properties d. Institutional Properties / LGU

Development Projects: a. Subdivision Development b. Condominium Development c. Commercial Development d. Agricultural Development e. Agro- Industrial Development f. Industrial Development



15 Banking Days


PROCESSING TIME

g. Power Generation Projects

Residential Properties with total estimated value of more than P1.0B

Non-Residential Properties: a. Commercial Properties b. Commercial Properties c. Industrial Properties d. Agricultural Properties e. Institutional Properties

Development Projects: a. Subdivision Properties b. Condominium Properties c. Commercial Properties d. Agricultural Properties e. Agro-Industrial Development f. Industrial Development g. Power Generation Projects



20 Banking Days

CHATTEL: MACHINERIES AND EQUIPMENT

Machineries and equipment with total estimated value up to P3M a. Vehicles b. Cottage Industry Equipment c. Medical Equipment d. Office Equipment e. Farm Equipment f. Heavy Equipment

Step 1 & 2–1 Banking Day Step 3 – 1 Banking Day Step 4-6 1 Banking Day


3 Banking Days

Machineries and equipment with total estimated value up to P10M a. Vehicles b. Cottage Industry Equipment c. Medical Equipment d. Office Equipment e. Farm Equipment f. Heavy Equipment



7 Banking Days

Machineries and equipment with total estimated value of more than P10M but not exceeding P1.0B a. Vehicles b. Cottage Industry Equipment c. Medical Equipment d. Office Equipment

Step 1 & 2–1 Banking Day Step 3 – 10 Banking Days Step 4-6 4 Banking Day Total 15 Banking Day

15 Banking Days


PROCESSING TIME

e. Heavy Equipment f. Industrial Plants Machineries &

Equipment g. Sea Vessel h. Air Vessel i. Inventories

Machineries and equipment with total estimated value of more than P1.0B a. Vehicles b. Cottage Industry Equipment c. Medical Equipment d. Office Equipment e. Heavy Equipment f. Industrial Plants Machineries &

Equipment g. Sea Vessel h. Air Vessel



20 Banking Days

2. Credit Information/Background Information Services

Request for Credit Information/Background Information (CI/BI)






For Lending Operations Request for Credit Information Form with supporting documents corresponding to the request (See Annex A)

See Annex A

For LANDBANK Subsidiaries Letter Request for Credit Information with List of Account Names

LBP Subsidiaries


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Submit duly accomplished Credit Information Request (CIR) Form with the following information:

1.1 Receive request and check completeness of supporting data/ information

None 1 Banking Day


PVCID

1.2 Encode request in the Tracking System

None Administrative Assistant/Analyst

PVCID

1.3 Forward request and processing form to Negative File Information System, Loandex Information System operators and Credit Information Unit (CIU)

None Administrative Assistant/Analyst

PVCID


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1.4 Evaluate and assign request for CI/BI

None 4 Hours CIU Team Head PVCID

1.5 Conduct credit information/ verification according to job order indicated in the request

None 8 Banking Days (See Annex B)

Credit Information Analyst/Specialist

PVCID

1.6 Prepare CIR

None Credit Information Analyst/Specialist

PVCID

1.7 Approve and issue CIR

None 4 Hours CIU Team Head PVCID


Annex A

CHECKLIST OF REQUIREMENTS WHERE TO SECURE 1. The following shall be the prevailing standard

practices in preparing a request for CI:

The CI request should have complete borrower’s data:

a) For Corporations/ Cooperatives/ Local Government Units/ Small & Medium Business Enterprises

- Complete Corporate/ Cooperative/ Local Government Unit/ SME Business Name

- Complete Business Address

- Taxpayer’s Identification No. (TIN) b) For Mortgage Banking

- Complete Borrower’s name (Surname, Given Name, Middle Name)

- Nickname/ A.K.A

- Domicile Address

- Complete Residence Address

- Business Name/ Employer

- Complete Business/ Employer Address

- Date of birth

- Civil Status

- Gender

- Tax Payer’s Identification No. (TIN)

- Identification Card Type/ No. (i.e. Company ID/ No., Passport, SSS, GSIS, Driving License, etc.)

- Spouse name (if applicable)

- E-mail Address

- Contact No. (Mobile and/ or Landline)

- Company Designation/ Position

- Other concrete reference for identification

c) For Credit Card Applicants/ Non-Borrowing Accounts

- Complete Borrower’s name (Surname, Given Name, Middle Name)

ADLS Securities & Exchange Commission (SEC) Department of Trade & Industry (DTI) Mayor’s Office Bureau of Internal Revenue (BIR) Company (Employment Agency) Social Security System (SSS) Bureau of Internal Revenue (BIR) Department of Foreign Affairs (DFA) Commission of Election (COMELEC) Land Transportation Office (LTO) Company (Employment Agency) Social Security System (SSS) Bureau of Internal Revenue (BIR) Department of Foreign Affairs (DFA) Commission of Election (COMELEC) Land Transportation Office (LTO)


- Complete Residence and/ or Business Address

- Date of birth

- Civil Status

- Gender

- Taxpayer’s Identification No. (TIN)

- Identification Card Type/ No. (i.e. Company ID/ No., Passport, SSS, GSIS, Driving License, etc.)

- Spouse name (if applicable)

- E-mail Address

- Mother’s Maiden Name

- Contact No. (Mobile and Landline)

2. The following documents shall be attached to the CI Request:

a) For Corporations/ Cooperatives/ Small & Medium Business Enterprises

- Government Regulatory Agencies registration/ license certificate and other related documents

b) For Mortgage Banking

- Duly Accomplished Loan Application

- Latest Certificate of Employment and Compensation and/ or Contract of Employment

- Payslips/ Vouchers

- Income Tax Return

- Proof of Billing from Utilities (for residence checking) i.e. electric, water, cable, T.V., telephone, etc.

c) For Credit Card Applicants

- Duly Accomplished CI Request Form

d) Non- Borrowing Accounts

- Duly Accomplished CI Request Form

- Government Regulatory Agencies registration/ license certificate

Securities & Exchange Commission (SEC) Department of Trade & Industry (DTI) Mayor’s Office Cooperative Development Authority (CDA) Other regulating bodies Company (Employment Agency of Borrower) For Utilities : PLDT, MERALCO, Maynilad, Manila Waters, Globe, Smart, SkyCable Securities & Exchange Commission (SEC) Department of Trade & Industry (DTI) Mayor’s Office Cooperative Development Authority (CDA) Other regulating bodies

Annex B

AGENCY ACTIONS TOTAL PROCESSING TIME TOTAL Conduct credit information/ verification according to job order request 1. Electronic Verification (Basic CI)

Bankers Association of the Philippines – Credit Bureau (BAP-CB)

a) Negative File Information System

(NFIS)

- Mishandled Currents Account (1-month old data)

- Cancelled Credit Cards (1-month old data)

- Adversely Classified Loans (1-month old data)

- Court Case (as of August 2016)

b) Loandex Information System (LIS)

- LIS (31 to 210 day old data) – requested by AO for marketing or prospecting purposes only

- LIS (1 to 60 day old data)

c) Government Regulatory Agencies

- Securities and Exchange Commission (SEC)

- Department of Trade & Industry (DTI)

- Cooperative Development Authority (CDA)

2. Optional Credit Information a) Phone Verification b) Residence c) Trade d) Referred Non-BAP Members/


8 Banking Days Step 1 - 5 working days Step 2 – 3 Banking Days

AGENCY ACTIONS TOTAL PROCESSING TIME TOTAL e) Employment/ Compensation

(Salary, Stipend, Allowances, Emoluments, Remunerations, etc. – Local-based employer or local-based employee/ clients)

f) BIR Verification of the authenticity of the Tax Clearance

g) Field Work Verification

- Trial Courts, Special Courts, Court of Appeals (CA) & Supreme Court (SC) – E-Court System or Manual court verification

Pending Court Cases

- SEC or CDA Verification

- Employment/ Compensation (Salary, Stipend, Allowances, Emoluments, Remunerations, among others)

Foreign employer with local office for sea-based employee/ client

Foreign employer with local office for land-based employee/ client

Foreign employer with local office thru POEA

h) Field Work Verification

- Other income of clients derived from Scholarship grants, pensions, dividends, etc.

- Other Entities (e.g. bank, credit card, insurance companies)

- Mayor’s Business Permit Verification

- Leased Premises Validation (presence and names of lessees, and pictures of leased property/ies)

AGENCY ACTIONS TOTAL PROCESSING TIME TOTAL

i) E-mail/ Postal Verification

- Employment/ Compensation (Salary, Stipend, Allowances, Emoluments, Remunerations, etc. – Local-based employer of local-based employees/ clients) Employment/ Compensation (Salary, Stipend, Allowances, Emoluments, Remunerations, among others:

Foreign employer with local office for sea-based employee/ client

Foreign employer with local office for land-based employee/ client

Foreign employer with foreign office for sea-based and land-based employee/ client

Other income of clients derived from Scholarship grants, pensions, dividends, etc.

Other Entities (e.g. bank, credit card, insurance companies)

Referred Non-BAP Members/ Financial Institutions

DTI Business Name Registration Verification

Intellectual Patent Verification

Philippine Contractors Accreditation Board (PCAB) License Verification

3. Credit Rating of LBP Borrowers

Serve as a tool for the uniform assessment of credit worthiness of LBP Borrowers and provide Management with relevant credit risk information on borrowers.

Office or Division: Credit Risk Management Department (CRMD)



Who may avail: LBP Lending Units


For Corporate, MSME, Cooperative, EHL: Latest approved CFP/LRP/TLR, BBI, Latest AFS

Lending Units and LBP Borrowers

For LGUs: COA Audited Financial Statement, Statement of Receipts and Expenditures

COA, BLGF, PSA (website)

For Livelihood Loan: Encoded Applicants Information in the Loan Data File (LDF)

LBP Branches


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Submit Request for Credit Rating

1.1 Download, encode and validate data file against the supporting documents


Corporates

20 Banking Days for

LGUs

1 Banking Day for

Livelihood Loan

Borrowers

Risk Management Analyst/Risk Management

Specialist 1/Unit Head Department Head

CRMD

1.2 Upload validated data file into Credit Risk Engine System

None Risk Management Analyst/Risk Management


CRMD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1.3 Generate credit rating and furnish PDF copy of credit ratings on or before 3 PM directly to the LUs through their official e-mails

None Risk Management Analyst/Risk Management


CRMD

TOTAL None 5 Banking Days for

Corporates

20 Banking Days for

LGUs

1 Banking Day for

Livelihood Loan

Borrowers

4. Issuance of Certificates

Certificate requested by the Lending Center on the following account: Full Payment, Outstanding Balance, Full Payment of Disposal Real and Other Properties Acquired, Loans Receivable, Sales Contract Receivable and Documentary Stamp which included the Promissory Note No., Principal and date of transaction.

Office or Division: Loans Implementation Department (LID)





Memo request from Lending Unit’s (LU) concerned (1 copy)

Lending Unit

Symbols generated re : full payment (1 copy )

Latest Outstanding Balance date

Issuance of Certificate of Payments Made/Outstanding Balance/Documentary Stamps

CLIENT STEPS AGENCY

ACTIONS

FEES TO

BE PAID

PROCESSING

TIME

PERSON

RESPONSIBLE

1. Submit a memo request

1.1 Verify from Loan System if no loan outstanding balance

P200

20 Minutes

Loan Processor LID

1.2 Verify from

SAP Subsidiary Ledger’s System

CLIENT STEPS AGENCY

ACTIONS

FEES TO

BE PAID

PROCESSING

TIME

PERSON

RESPONSIBLE

Details such as Real Estate Tax, Certificate of Withhol-ding Tax etc.

20 Minutes

Loan Processor LID

If no Accounts Payable (AP) proceed if with unapplied AP

20 Minutes

1.3 Prepare the Certificate of Full Payment

30 Minutes

1.4 Review and affix initials

None 20 Minutes

Division Chief, Assistant Department

Manager LID

1.5 Sign and forward to LU/Special Assets Department

None 10 Minutes

Department Head LID

TOTAL P 200

2 Hours

5. Issuance of Letters of Credit (L/C)

Issuance of Foreign/Domestic Commercial or Standby L/C

Office or Division: International Trade Department (ITD)


Type of Transaction: G2G - Government to Government





FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Fill-out the LBP forms and submit required documents

1.1 Examine L/C Application Form and other required documents

Applicable L/C

opening charges

The

opening charges

on approved L/Cs shall be com-puted as recom-mended

by the LU con-

cerned.

Said charges

shall include bank

commis-sion and


50 Minutes Document Specialist ITD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1.2 Prepare billing statement for L/C opening charges


2. Pay the required fee per billing statement

2.1 Process payment of charges

None 15 Minutes Assistant Department Manager

ITD

2.2 For Foreign Commercial and Standby L/C, prepare Society for Worldwide Interbank Financial Telecommunication messages

For domestic commercial and Standby L/C, prepare L/C Confir-mation


ITD

2.3 Release LC copy

None 10 Minutes Department Head ITD

TOTAL Appli-cable L/C opening charges

+ bank

commis-sion and


1 Hour, 50 Minutes

6. Issuance of Secretary’s Certificate

As part of the secretariat services, the Office of the Corporate Secretary (OCS) issues a

certificate signed by the Corporate Secretary which involve external transactions

Office or Division: Office of the Corporate Secretary (OCS)


Type of Transaction: G2G - Government to Government (Internal)

Who may avail: LBP Units/Departments/Groups/Committees (Proponents)


None


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Submit memo request and its required supporting documents to OCS

1.1 Review/Check completeness and accuracy of the request/ proposal

None 2 Hours Administrative Assistant/Analyst

OCS

1.2 Prepare/Draft the Secretary’s Certificate

None 1 banking day


OCS

1.3 Review/Study/Validate correctness and sufficiency of the draft Secretary’s Certificate

None 1 banking day

Administrative Specialist/Officer/


1.4 Sign the final copy of the Secretary’s Certificate and facilitate notarization

None 1 banking day

(paused-clock)

Administrative Assistant/


& Notary Public

Legal Services Group


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1.5 Distribute the Secretary’s Certificate to requesting unit

None 30 Minutes Administrative Assistant

OCS


2 Hours, 30 Minutes

7. Issuance of Statement of Account

A report issued to the borrowers showing monthly minimum payment due and other vital Information serves as a reference for payment.






Memo request from Lending Unit’s (LU) concerned (1 copy)

Lending Unit

CLIENT STEPS AGENCY

ACTIONS

FEES TO

BE PAID

PROCESSING

TIME

PERSON

RESPONSIBLE

1. Submit a memo request

1.1 Verify the details on Symbols

None 15 Minutes

Loan Processor LID

1.2 Validate and compute for the penalty, interest, principal due

None 30 Minutes

Assistant Division Chief LID

1.3 Review the statement of account

None 10 Minutes

Division Chief LID

1.4 Check the statement of account

None 10 Minutes


LID

1.5 Approve/Sign the statement of account

None 10 Minutes


LID

TOTAL None 1 Hour, 15 Minutes

8. Loan Documentation

Prepare standard loan and collateral documents; Review draft loan documents

based on standard loan and collateral documents; Review as to legal sufficiency

of the loan and collateral documents

Office or Division: Banking Legal Services Department (BLSD)



Who may avail: All Government Agencies, LGUs, GOCCs and other Government Instrumentalities




FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Submit the requesting memo indicating the legal services required and its necessary attachments and annexes

1.1 Stamp receipts and make appropriate entries/ encoding for assignment to a lawyer

None 1 Hour

Legal Assistant, BLSD

1.2 Assign the memo to the handling lawyer

None 1 Hour


1.3 Review the memo and prepare initial draft

None 1 Banking Day

Legal Officer, BLSD

1.4 Review the draft prepared by the handling lawyer

None 1 Banking Day

Department Head, BLSD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1.5 Finalize the reviewed/ corrected draft

None 1 Banking Day

Legal Officer and Department Head,

BLSD

1.6 Dispatch of final and official loan document

None 1 Hour Legal Assistant, BLSD


3 Hours

Annex A


1) Requesting memo indicating the legal services required (One original and one photocopy);

2) Credit Facilities Proposal (one photocopy) and resolutions of appropriate Loan Approving Group, if any, particularly as to the:

a) Name and address of Borrower, including authorized signatories;

b) Loan Amount; c) Loan Purpose; d) Applicable Interest Rate; e) Term of Loan; f) Repayment Terms; g) Other Fees and Charges; h) Availability End Date; i) Expiry Date; and j) Availability of Promissory

Note.

3) Supporting documents, as may be applicable (One photocopy):

I. INDIVIDUAL (including

SINGLE PROPRIETORSHIP)

Data based on the CFP and the Basic Business Information;

Secretary’s Certificate or Board Resolution authorizing the transaction, collateral/s offered to secure the loan obligation (if applicable) and designating the authorized signatories; and

- Appropriate unit or department of the Bank.

- Appropriate Lending Unit or Department

- Appropriate government agency or instrumentality.


Other documents, as may be deemed necessary.

II. COOPERATIVE

Secretary’s Certificate or Board Resolution authorizing the transaction, collateral/s offered to secure the loan obligation (if applicable) and designating the authorized signatories;

General Assembly / Membership Resolution authorizing the transaction, if necessary; and


III. LOCAL GOVERNMENT UNIT

(LGU)

Ordinance approving the loan transaction, mortgage of properties or assignment of IRA and other revenues and designating the LCE as signatory to all documents pertaining to the transaction;

Local School Board Resolution for loans against the LGU’s Special Education Fund; and



4) Collateral Documents

a. For Real Estate Mortgage:

Photocopy of owner’s duplicate copy of Original Certificate of Title (OCT)/Transfer Certificate of Title (TCT)/ Condominium Certificate of Title (CCT); and


b. For Chattel Mortgage:

In case of motor vehicle/vessel/aircraft – Land Transportation Office / Maritime Industry Authority /Civil Aviation Authority of the Philippines certificate of registration and latest official receipt;

Appraisal report from Property Valuation-Credit Investigation Department; and

Other documents, as may be deemed necessary

c. For Pledge or Assignment


Prepare and review non-standard loan and collateral documents (documents

which are not provided for in the Bank’s Credit Manual); Review as to legal

sufficiency of the loan and collateral documents

Office or Division: Banking Legal Services Department (BLSD)



Who may avail: All Government Agencies, LGUs, GOCCs and other Government Instrumentalities




FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Submit the requesting memo indicating the legal services required and its necessary attachments and annexes

1.1 Stamp receipts and make appropriate entries/ encoding for assignment to a lawyer

None 1 Hour


1.2 Assign the memo to the handling lawyer

None 1 Hour


1.3 Review the memo and prepare initial draft

None 4 Banking Days

Legal Officer,

BLSD

1.4 Review the draft prepared by the handling lawyer

None 2 Banking Days



FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1.1 Finalize reviewed/ corrected draft

None 1 Banking Day

Legal Officer and


1.2 Dispatch of final and official loan document

None 1 Hour Legal Assistant, BLSD


3 Hours

Annex A


1) Requesting memo indicating the legal services required (One original and one photocopy);

2) Credit Facilities Proposal (one photocopy) and resolutions of appropriate Loan Approving Group, if any, particularly as to the:

a) Name and address of Borrower, including authorized signatories;

b) Loan Amount; c) Loan Purpose; d) Applicable Interest Rate; e) Term of Loan; f) Repayment Terms; g) Other Fees and Charges; h) Availability End Date; i) Expiry Date; and j) Availability of Promissory

Note.

3) Supporting documents, as may be applicable (One photocopy):

I. INDIVIDUAL (including

SINGLE PROPRIETORSHIP)

Data based on the CFP and the Basic Business Information;

- Appropriate unit or department of the Bank.




If the Borrower is represented by an attorney-in-fact, a duly executed and notarized Special Power of Attorney (SPA) which should contain an authority to enter into transaction/s with LBP and to sign documents relative thereto;

If the SPA is executed abroad, the same shall be supported by an apostille;

II. PARTNERSHIP

Partnership Resolution authorizing the transaction, collateral/s offered to secure the loan obligation (if applicable) and designating the authorized signatory/ies;


III. CORPORATION

Most recent General Information Sheet duly filed with the SEC or Certified List of Incumbent Directors and Officers;

Secretary’s Certificate or Board Resolution authorizing the transaction, collateral/s offered to secure the loan obligation (if applicable) and designating the authorized signatories; and




IV. COOPERATIVE

Secretary’s Certificate or Board Resolution authorizing the transaction, collateral/s offered to secure the loan obligation (if applicable) and designating the authorized signatories;

General Assembly / Membership Resolution authorizing the transaction, if necessary; and


V. LOCAL GOVERNMENT UNIT

(LGU)

Ordinance approving the loan transaction, mortgage of properties or assignment of IRA and other revenues and designating the LCE as signatory to all documents pertaining to the transaction;

Local School Board Resolution for loans against the LGU’s Special Education Fund; and



4) Collateral Documents

a. For Real Estate Mortgage:

Photocopy of owner’s duplicate copy of Original Certificate of Title (OCT)/Transfer Certificate of Title (TCT)/ Condominium Certificate of Title (CCT); and


b. For Chattel Mortgage:

In case of motor vehicle/vessel/aircraft – Land Transportation Office / Maritime Industry Authority /Civil Aviation Authority of the Philippines certificate of registration and latest official receipt;

Appraisal report from Property Valuation-Credit Investigation Department; and


c. For Pledge or Assignment


9. Processing of Direct Import Remittance

A mode of payment for a non-L/C transaction wherein the shipping documents are sent and released by the seller/exporter directly to the buyer/importer without coursing the documents thru the Bank upon the importer’s promise to pay at some future date after shipment.



Type of Transaction: G2G - Government to Government; G2B - Government to Business

Who may avail: Importers


1. Application to purchase Foreign Exchange (1 copy)

ITD

2. Original copy of Commercial Invoice Client- initiated documents 3. Original copy of Bill of Lading/ Air

Waybill


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Submit required documents

1. Validate original documents


2. Pay amount due and charges

2.1 Process payments

See Annex A

15 Minutes


ITD

2.2 Prepare Society for Worldwide Interbank Financial Telecommunication message

None 10 Minutes


ITD

2.3 Release original shipping documents

None 10 Minutes

Department Head ITD

TOTAL See Annex A

55 Minutes

Annex A

FEES TO BE PAID


GBP13 for GBP wire

SGD25 for SGD wire

AUD22 for AUD wire




amount


RTGS Fee - PHP150



SWIFT Cost - USD10






d. FX Bank’s fees

USD15 for USD wire

GBP13 for GBP wire

SGD25 for SGD wire

AUD22 for AUD wire


EUR45 for EUR wire

10. Processing of Documents Against Acceptance

A mode of payment for a non LC transaction whereby the original shipping documents are received from the seller/exporter’s bank with the instruction to release these documents to the buyer/importer only upon their acceptance to pay collection proceeds at a specific future date.






1. Foreign Bank Draft (Number of copies as received from Fx Bank)

ITD

2. Original Commercial Invoice (Number of copies as received from Fx Bank)

3. Original Bill of Lading / Air Waybill (Number of copies as received from Fx Bank)


CLIENT STEPS AGENCY

ACTIONS

FEES TO

BE PAID

PROCESSING

TIME

PERSON

RESPONSIBLE

1. Sign/Accept Foreign bank draft

1.1 Validate original documents


1.2 Prepare acceptance notice

None Document Specialist ITD


None 10 Minutes Department Head ITD

CLIENT STEPS AGENCY

ACTIONS

FEES TO

BE PAID

PROCESSING

TIME

PERSON

RESPONSIBLE

2. Pay draft amount and charges on or before maturity date

2.1 Process payment

Commis-sion - ¼ of

1% of collection amount; minimum

of PHP1,000 Swift Cost -PHP500 or USD30

Document-

ary Stamps-P0.60 for

every PHP 200

15 Minutes Assistant Department Manager

ITD

2.2 Prepare Society for Worldwide Interbank Financial Telecommuni-cation message


ITD

TOTAL Commis-sion - ¼ of


of PHP1,000 Swift Cost -PHP500 or USD30

Document

-ary Stamps-P0.60 for

every PHP 200

55 Minutes

11. Processing of Documents Against Payment

A mode of payment for a non LC transaction whereby the original shipping documents are received from the seller/exporter’s bank with the instruction to release these documents to the buyer/importer only upon the outright payment of collection proceeds.






Application to purchase Foreign Exchange (1 copy)

ITD

Original Commercial Invoice (Number of copies as received from Fx Banks)

Original Bill of Lading/ Air Waybill (Number of copies as received from Fx Banks)

CLIENT STEPS AGENCY

ACTIONS

FEES TO

BE PAID

PROCESSING

TIME

PERSON

RESPONSIBLE

1. Confirm settlement of documents and submit required documents

1. Validate original shipping documents


2. Pay charges 2.1 Process payments

Commis-sion - ¼ of


of PHP1,000

Swift Cost - PHP500 or USD30

Document

ary

Stamps -

PHP0.60

for every

PHP200


ITD

CLIENT STEPS AGENCY

ACTIONS

FEES TO

BE PAID

PROCESSING

TIME

PERSON

RESPONSIBLE



ITD


None 10 Minutes

Department Head ITD

TOTAL Commis-sion - ¼ of 1% of

collection amount; minimum

of PHP1,000

Swift Cost -

PHP500 or USD30

Documen

tary

Stamps -

PHP0.60

for every

PHP200

55 Minutes

12. Processing of Domestic Bills

Examination of documents presented to the Bank by a local seller to ascertain if all the terms and conditions of the domestic commercial L/C are complied with before payments or acceptance are made.






1. Commercial Invoice (1 copy) Client -initiated document

2. Delivery Receipt (if required in the L/C) (1 copy)

3. Other documents required in the L/C

4. Duly signed and accepted LBP Bank Draft (1 set)

ITD 5. Duly signed Trust Receipt (if client has

an L/C/TR Line) (1 copy)


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Submit the required documents



2. Accept

discrepancy notice

if there’s any

2. Prepare discrepancy notice, if any


3. Pay charges 3.1 Process payments

3.2 Prepare request for Manager’s Check/Real Time Gross Settlement form/Gross Settlement Real Time form

See Annex A


ITD


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

3.3 Prepares Society for Worldwide Interbank Financial Telecommuni-cation message

3.4 Credit proceeds


ITD

TOTAL See Annex A

1 Hour, 15 Minutes

Annex A

FEES TO BE PAID


GBP13 for GBP wire

SGD25 for SGD wire

AUD22 for AUD wire




amount


RTGS Fee - PHP150



SWIFT Cost - USD10






d. FX Bank’s fees

USD15 for USD wire

GBP13 for GBP wire

SGD25 for SGD wire

AUD22 for AUD wire


EUR45 for EUR wire

13. Processing of Open Account

A mode of payment for a non L/C transaction wherein the shipping documents are sent and released by the seller/exporter directly to the buyer/importer without coursing the documents thru the Bank upon the importer’s promise to pay at some future date after shipment.







ITD 2. LBP Bank Draft (1 set)

3. Original Commercial Invoice

Client -initiated documents 4. Original Bill of Lading/Air Way bill

CLIENT STEPS AGENCY

ACTIONS

FEES TO

BE PAID

PROCESSING

TIME

PERSON

RESPONSIBLE

1. Fill-out the LBP forms and submit required documents


None 20 Minutes

Document Specialist ITD

2. Pay draft amount and charges on or before maturity date

2.1 Process payment

See

Annex A


ITD


10 Minutes

TOTAL See

Annex A

45 Minutes

Annex A

FEES TO BE PAID


GBP13 for GBP wire

SGD25 for SGD wire

AUD22 for AUD wire




amount


RTGS Fee - PHP150



SWIFT Cost - USD10






d. FX Bank’s fees

USD15 for USD wire

GBP13 for GBP wire

SGD25 for SGD wire

AUD22 for AUD wire


EUR45 for EUR wire

14. Retrieval and Safekeeping of Collateral Documents

The document requested for retrieval are the collateral documents such as Titles, Post Dated Check, Promissory Notes and other legal documents related to loans that maintained and monitored inside the vault.






Document Retrieval Form (DRF) (1 copy) Lending Unit

Certificate of Full Payment (if fully paid) (1 copy)

LID

Deed of absolute Sale (SCR) ( 1 original copy or certified correct)

Lending Unit

Copy of LPIF for partial release of collateral (received copy) and computation of collateral cover (1 copy)

Release of Real Estate Mortgage (1 copy)

Deed of undertaking/affidavit for borrowed collateral (1 copy original)

Certificate Authorizing Registration (CAR) (1 copy)


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Submit duly accomplished approved and signature verified DRF with complete attachments

1.1 Review the validity of the DRF and other documents attached

None 10 Minutes

Loan Processor LID

1.2 Route the DRF to check the details on releasing and billing

None 30 Minutes

Loan Processor LID

1.3 Retrieve the titles from the vault and examine the details

None 6 Hours*


LID


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1.4 Review the DRF and retrieved titles from the vault

None 5 Minutes

Division Chief LID

1.5 Review/sign

the DRF and

review the

retrieved titles

from the vault

None 20 Minutes


LID

1.6 Forward the

titles to

Lending Unit

None 5 Minutes Loan Processor LID

TOTAL None 7 Hours, 10 Minutes

Note: Computed on a per average basis depending on the number of titles to be retrieved

15. Skip Tracing and Asset Verification

Request for Skip Tracing and Asset Verification (STAV) of defaulting borrowers






Request for Skip Tracing and Asset Verification

Agricultural and Development Lending Sector/ Credit Card Administration Department

Last known residential/business address of the defaulting borrower


FEES TO BE PAID

PROCESSING TIME

PERSON RESPONSIBLE

1. Submit of duly accomplished request STAV with last known residential/ business address

1.1 Receive and encode request in the Tracking System

None 2 Hours CTIMU – 1 Administrative

Assistant/Analyst PVCID

1.2 Evaluate and assign request

None 2 Hours PVU Head PVCID

1.3 Conduct STAV and prepare report


Property Valuation Specialist

PVCID

1.4 Sign and approve the report

None 2 Hours PVU Team Head PVCID

1.5 Transmit report to the requesting unit

None 2 Hours CTIMU – 1 Administrative

Assistant/Analyst PVCID
