SEC Approval of the Documents to be Submitted to the SEC in Lieu of BSP Examiner’s Report on the On-site Verification Validating the Fresh Capital Infusion by the Rural and Cooperative Banks

CIRCULAR LETTER NO. CL-2007-036

To : ALL RURAL AND COOPERATIVE BANKS

Subject : SEC Approval of the Documents to be Submitted to the SEC in Lieu of BSP Examiner’s Report on the On-site Verification Validating the Fresh Capital Infusion by the Rural and Cooperative Banks.

Quoted hereunder is the letter dated 20 April 2007 of Atty. Fe B. Barin, Chairperson of the Securities and Exchange Commission (SEC), approving the documents to be submitted in lieu of the BSP Examiner’s Report.

"In reply to your letter dated 04 April 2007 on the subject (Rural Banks: Proposed Templates for their Application to Amend fhe Articles of lncorporafion Involving increase of Capita/ Stock to be funded by Fresh Capital Infusion), please be informed that your proposed templates of the documents to be submitted to the SEC in lieu of the BSP Examiner’s Report on the on-site verification validafing fhe fresh capifal infusion by the rural bank are acceptable to this Commission. However, for the Notarized Bank Certification to be signed by majority of the rural bank’s Board of Directors, we suggesf the inclusion therein of fhe names of the subscribers to the increase in capital stock together with their respective subscription and payment as presented to and approved by the BSP.”

Attached are the approved templates of the documents to be submitted to the Bangko Sentral ng Pilipinas:

1. Notarized Bank Certification (Annex A); 2. Schedule of Stockholdings Before and After Capital Increase and Schedule of Payments (Annex A-1); 3. Subscription Agreement (Annex B); and 4. Treasurer’s Sworn Statement (Annex C).

The documents submitted shall be subject to verification during examination.

For information and guidance,

NESTOR A. ESPENILLA, JR. Deputy Governor