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8/9/2019 Guide Com Bank

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02/04/004/0005/001 Central Bank of Sri Lanka

Bank Supervision Department

To: All Licensed Commercial Banks andLicensed Specialised Banks

GUIDELINESON THE GRANT OF FACILITIESFOR THE ISSUE OFCOMMERCIAL PAPER AND OTHER FORMS OF PROMISSORY NOTES

All Licensed Commercial Banks (LCBs) and Licensed Specialised Banks (LSBs) ahereby required to observe the following guidelines when they provide accommodation fthe issue of Commercial Paper and other forms of Promissory Notes (CP/PN) by th

corporate customers by accepting, endorsing, guaranteeing, underwriting or purchasing suCP/PN, or where they support the issue of such instruments by acting as issuing/payi

agents, dealers, or by authenticating signatures of the issuers.

1. Form of Commercial Paper/Promissory Notes - CP/PN shall take the form o

usance promissory note negotiable by delivery, or endorsement and delivery, in accordanwith the Bills of Exchange Ordinance.


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3. Procedures - A LCBs/LSBs support for the issue of CP/PN does not require t

prior approval of the Central Bank of Sri Lanka. However, in supporting the issue of the

instruments, LCBs/LSBs shall ensure that:

3.1 The company intending to issue such CP/PN submits to LCBs/LSBs -(a) A written request indicating the nature of support applied for in respect

each issue of CP/PN;(b) Comprehensive financial information which would include company profil

and financial data including a projected cash flow statement;(c) The value of CP/PN already issued and outstanding;(d) Board resolution for the issue of CP/PN concerned.

3.2 The LCBs/LSBs should also ensure that the company profiles and financial data a

made available to investors upon request.

3.3 An adequate appraisal of the financial condition of the issuer is carried out and ducaution is exercised before lending the support of the LCB/LSB. For this purpose, tLCB/LSB should, among other things, obtain a report from the Credit Informati

Bureau (CRIB).

3.4 The CP/PN are printed on good quality security paper incorporating adequate securfeatures, that necessary precautions have been taken to keep documents in sa


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(Amounts in Rupees Thousands)

Name of Issuing Company Legal Status of

Issuing

Company

Type of

Promissory Notes

Issued

Amount of the Issue (Face

Value)

A mount Sub scri bed D at e o f I ss ue

(YY/MM/DD)

Date of Maturity

(YY/MM/DD)

Rate of

Interest (%)

Nature of

Support

(1) (2) (3) (4) (5) (6) (7) (8) (9)

Instructions :

* Column (9)

Accepting AC

Endorsing EN

Guaranteeing GT

Underwriting UN

Purchasing PR

Issuing Agent IA

Paying Agent PA

Dealer DE

Authenticating AU

We hereby certify that this statement reflects the value of support extended to the Bank's customers and that the statement figures tally with the General Ledger Balances as at the end of the month.

Date : Name of Bank : Authorised Officer:

DP/BS10/Excel/Disk24

* A 'nil' statement should be submitted if there are no outstanding amounts.

Public Unquoted Company - PU

Public Quoted Company - PQ

* This statement should reach the Director, Bank Supervision Department on or before the 15th of the following month.

* Column (3) : Please indicate whether Commercial Paper (CP), Promissory Notes

(PN), or any other form (Please specify)

Peoples Company - PC

Monthly Statement of Commercial Paper/ Promissory Notes

As at ..in terms of Guidelines dated 5 January 2001

* Column (2)

Private Company - PR Nature of Support Code

Please indicate using the following Codes:Please indicate using the following Codes:

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