244 MONEY MARKET PLACEMENTS OF RURAL BANKS
a. Money market placements shall include investments in debt instruments, including purchase of receivables with recourse to the lending institution, except purchase of government securities on an outright basis.
b. Government securities shall include evidences of indebtedness of the Republic of the Philippines, the Bangko Sentral and other evidences of indebtedness or obligations of government entities the servicing and repayment of which are fully guaranteed by the Republic of the Philippines.
c. Persistent violation shall mean the violation of any of the provisions of these rules by the director or officer concerned for four (4) or more times within a 12-month period from the date the first offense was committed.
a. That total money market placements of an RB as stated in the certification, including the placement being accepted by the entity concerned, shall not exceed the RB’s combined capital accounts or net worth less current obligations with the Bangko Sentral or other government financial entities;
b. The maturity of the money market placement shall not exceed sixty (60) days; and
c. That placements shall be evidenced in all cases by promissory notes of accepting entities/repurchase agreements and/or certificates of participation/assignment with recourse and that underlying instruments shall be certificates of indebtedness issued by the Bangko Sentral or other government securities the servicing and repayment of which are guaranteed by the Republic of the Philippines.
a. Monetary penalties
First offense – Fines of P3,000 a day, reckoned from the date placement started up to the date when said placement was withdrawn, for each violation shall be assessed on the bank.
Subsequent offenses – Fines of P5,000 a day, reckoned from the date placement started up to the date placement was withdrawn, for each violation shall be assessed on the bank.
b. Other sanctions
First offense – Reprimand for the directors/officers who approved the acceptance/placement with a warning that subsequent violations will be subject to more severe sanctions.
Subsequent offenses –
(1) Suspension for ninety (90) days without pay for directors/officers who approved the placement.
(2) Suspension or revocation of the authority to engage in quasi-banking functions.