LODP Flashcards
(153 cards)
0
Q
How do you differentiate commercial from consumer loans? (6)
A
Commercial vs consumer
- small volume, large amounts vs large volume, small amounts
- one-by-one approval process vs volume approval process
- audited financial statements available vs limited or poor financial data
- payment record available vs credit history available but usually incomplete
- account managed vs portfolio managed
- generally complex loans vs parameter driven products
1
Q
Credit review functions (3)
A
Contribute to bank’s growth and probability by:
- formulating consumer policies & procedures
- assessing portfolio & process quality
- anticipating, identifying, and assessing credit risks/productivity improvements
2
Q
It is a statistical tool developed for the lender to determine the probability of a loan applicant becoming a good paying client.
A
Credit scoring
3
Q
Advantages of credit scoring.(5)
A
- more accurate prediction of risk
- increase revenue
- better understanding of customers
- greater processing efficiency
- management information capabilities
4
Q
What is the eligible age for applying a credit card?
A
21 to 70 years old
5
Q
What is the minimum monthly income for autoloans?
A
30k
6
Q
Employment eligibility for housing loan.
A
- at least 2 years employed with the present or previous employer.
- regular employee in a stable company
7
Q
Minimum income for credit card application.
A
- 10k (idividual)
- 15k (family)
8
Q
Minimum loan amount for housing loans.
A
400k
9
Q
What is the maximum credit limit for credit cards? (Income based)
A
Not to exceed 300% of monthly salary
10
Q
What is the maximum GMIR for housing loans?(2)
A
- 40% if income is 50k and above
- 30% if income is below 50k
11
Q
Collateral for credit cards?
A
- deposits, but mostly clean
12
Q
What is the maximum LCR for housing loans?
A
80% of the TAV
13
Q
What is the maximum term for housing loans?
A
20 years
14
Q
What is the retention period of court cases in the NDB?
A
20 years
15
Q
How long will a foreclosed accounts be retained in the NDB?
A
Permanent
16
Q
Parameters and quorums for Board of directors’ approval.
A
- All credits in excess of 3B
- all DOSRI accounts
- statutory limits
Quorum: 8 of 15 members
17
Q
Parameters and quorums for ExCom approval.
A
- Secured/Unsecured credits up to 3B
- ACA - 2B
- vs deposit: no limit
- Leasing over 100M
- ROPA sale over 15M
Quorum: 4 of 7 members
18
Q
Parameters for Unibank CreCom approval
A
- Unsecured : 150M
- Secured: 750M
- vs deposit: no limit
- BP(dom,for): 75M
- Import LCTR: 500M
- Leasing: 100M
- ROPOA Sale: 15M
19
Q
Quorum for unibank CreCom approval
A
- 3 members, one of whom must either be the chairman or vice chairman
- must include credit division head
- must be approved by chairman if elevated to ExCom or Board of directors
20
Q
Parameters and quorum for CBD Sub-CreCom Approval
A
- Unsecured: 25M
- Secured: 125M
- vs deposits: 200M
- BP(dom/fx; ebs w/ desc): 25M
- Import LCTR: 50M
- Leasing : 25M
- Quorum: 3 members, composed of MTH, MDH, and CDH
21
Q
BFSB CreCom Approval parameters and quorum.
A
- Unsecured: 20M
- Secured: 100M
- vs deposits: 300M
- BP(dom/fx): 10M
- PECL: 10M
Qurum: 2 members, one of whom must be the chairman or vice chairman(at 50% of the limits)
22
Q
Major types of international trade transactions.
A
- import
- export
- foreign payments
23
Q
Refers to the movement of funds across borders.
A
Foreign payments
24
These are universally recognized sets of rules governing documentary credits.
UCP or uniform customs and practices for documentary credits
25
Framework for evaluating agri projects
- economy
- supply
- demand
- labor
- infrastructure
26
Major risks in agriculture
- commodity price risk
- climate and environmental risk
- currency and interest rate risk
- political and regulatory risk
27
Minimum eligibility for agri lending. (5)
- borrower must qualify the 5 C's of credit
- borrower must show proven track record and project must pass agri's technical evaluation criteria
- project must be located in areas with acceptable peace and order condition
- borrower must have a proven managerial capability
- project must have a firm and reliable market
28
Modes of importation.(3)
- letter of credit
- documentary collection
- open account
29
A letter of credit intended to be paid in the event of the applicant's default in respect of an obligation owed to the beneficiary.
Standby letter of credit
30
Modes of payment in trade. (4)
- advance payment
- document against payment
- document against acceptance
- letter of credit
31
Parties to a letter of credit transaction. (6)
- importer
- exporter
- issuing bank
- advising bank
- confirming bank
- negotiating bank
32
Classifications of imports. (3)
- freely importable commodities
- regulated commodities
- prohibited commodities
33
Types of standby LC's (5)
- performance standby
- advance payment standby / down-payment bond
- bid bond / performance bond / warranty bond
- financial standby
- counter standby
34
A non-profit cooperative organization of banks with the objective to accelerate the process of foreign payments through automation and standardization.
SWIFT (society for worldwide interbank financial telecommunications)
35
Trade finance business model. (3)
- generates fees
- strengthen profitability
- natural cross-sell to cash management
36
Credit process
- credit evaluation / packaging / proposal
- approval
- documentation
- implementation
37
In credit evaluation, it is the gathering of information regarding on the history & profile of the company, its nature and operations and ownership & management.
Company analysis
38
Primary purpose of credit for business loan. (4)
- working capital
- refinancing of existing obligation
- project financing
- fund sourcing
39
These are loans intended to finance the production of goods for export.
Export advance line (EAL)
40
It is a post-shipment facility, where client can get credited for its export proceeds without waiting for its buyer's payment.
Export bills purchase line (EBPL)
41
Import LCTR is repriced in every what period?
90 days
42
How do interest being charged in an RPNL?
Charged only on the amounts drawn against the line
43
Types of credit according to security
- secured
- assignment of deposits (back-to-back loans)
- unsecured credit
44
What can be considered as security in a secured lending?(4)
- Real Estate Mortgage
- Pledge of Government Securities
- Unconditional Standby LC
- IFC guarantee
45
Chattel mortgage loans can already be considered as secured lending. (T/F)
False; only those that are secured with REM, government securities, unconditional standby LC's and IFC guaranteed.
46
Are back-to-back loans already considered as fully secured?
No
There is still risk from freezing of account when it is under litigation
47
These are instruments that shall make the duly approved credit facilities be operative.
Implementing memo
48
Evidences the official/legitimate action of a corporation.
Board resolution
49
Standard credit documents.(4)
- general loan agreement
- bills purchase agreement
- MTL / LTL agreement
- Promissory note
50
It is a formal advice of approved facilities.
Facility letter
51
LCR for shares of stocks.
50%
52
LCR for government securities.
50% - 80%, depending on the maturity
53
Types of loan transactions.
- availments
- renewals and extensions
- repricings
- payments
54
Validity period of approved STL and MTL
120 days from date of approval to date of loan release
Other lines are valid only for 90 days
55
Manager's check can only be used as loan's mode of release if ____________.
- it is a loan take-out.
| - if there's an approval from the president.
56
Maximum term for demand PN's
3 months
57
Approver for pricing below approved rate or lower than established floor rate of the week and for repricing not more than 90 days.
Division head w/ rank of SVP
- if repricing period is beyond 90 days, the Group Head must approve
58
A contract in which the debtor guarantees to the creditor the fulfillment of a principal obligation.
Mortgage
59
Where shall petition of foreclosure be filed?
In the place/municipality where the property is located
60
It is a remedy which the property covered by the mortgage may be subjected to sale for the payment of the demand for which the mortgage stands a security.
Foreclosure
61
In the preparation of loan package or credit proposal, who is responsible in drafting the CO face?
Marketing AO
62
Primary purpose of credit for business loan. (4)
- working capital
- refinancing of existing obligation
- project financing
- fund sourcing
63
It is a part of the loan process of knowing the client's loan purpose, checking its company profile & nature of business, and analyzing its financial capabilities.
Credit evaluation
64
It indicates the purpose, powers and lifespan of the company.
Articles of incorporation
65
Indicates the official positions in the corporation and their respective functions and powers.
By-laws
66
Approver for pricing below approved rate or lower than established floor rate of the week and for repricing not more than 90 days.
Division head w/ rank of SVP
- if repricing period is beyond 90 days, the Group Head must approve
67
In the preparation of loan package or credit proposal, who is responsible in drafting the CO face?
Marketing AO
68
In credit evaluation, it is the gathering of information regarding on the history & profile of the company, its nature and operations and ownership & management.
Company analysis
69
It is a part of the loan process of knowing the client's loan purpose, checking its company profile & nature of business, and analyzing its financial capabilities.
Credit evaluation
70
How do interest being charged in an RPNL?
Charged only on the amounts drawn against the line
71
Types of credit according to security
- secured
- assignment of deposits (back-to-back loans)
- unsecured credit
72
LCR for shares of stocks.
50%
73
LCR for government securities.
50% - 80%, depending on the maturity
74
Validity period of approved STL and MTL
120 days from date of approval to date of loan release
Other lines are valid only for 90 days
75
Manager's check can only be used as loan's mode of release if ____________.
- it is a loan take-out.
| - if there's an approval from the president.
76
It is a post-shipment facility, where client can get credited for its export proceeds without waiting for its buyer's payment.
Export bills purchase line (EBPL)
77
Import LCTR is repriced in every what period?
90 days
78
How do interest being charged in an RPNL?
Charged only on the amounts drawn against the line
79
What can be considered as security in a secured lending?(4)
- Real Estate Mortgage
- Pledge of Government Securities
- Unconditional Standby LC
- IFC guarantee
80
Chattel mortgage loans can already be considered as secured lending. (T/F)
False; on those that are secured with REM, government securities, unconditional standby LC's and IFC guaranteed.
81
It indicates the purpose, powers and lifespan of the company.
Articles of incorporation
82
Most important portion of a facility letter?
Conforme section
83
Types of loan transactions.
- availments
- renewals and extensions
- repricings
- payments
84
Validity period of approved STL and MTL
120 days from date of approval to date of loan release
Other lines are valid only for 90 days
85
Manager's check can only be used as loan's mode of release if ____________.
- it is a loan take-out.
| - if there's an approval from the president.
86
Maximum term for demand PN's
3 months
87
Approver for pricing below approved rate or lower than established floor rate of the week and for repricing not more than 90 days.
Division head w/ rank of SVP
- if repricing period is beyond 90 days, the Group Head must approve
88
Any unpaid loan amortization or installment shall be classified as past due the day after its due date. (T / F)
True
89
This refers to the accounts, whose principal and/or interest are not paid for at least 30 days after due date.
Non-performing loan (NPL)
90
Types of remedial action. (4)
- workout via repackaging
- loan restructuring
- dacion en pago
- legal action
91
This refers to the modifying of the existing loan terms and condition, setting a new schedule of payments to facilitate debt servicing.
Loan structuring
92
What are the maximum appraised values of the collateral properties for loan structuring that could be serviced by a unibank's internal appraisers?
- 5M for BPI
- 1 M for BFB
Beyond the maximum, appraisal from external appraisers are required
93
Required approval for dacion
- CreCom (vice, if below 10M)
94
In what portion of the appraised value of property should only be considered in a dacion?
80%
If it exceeds 80%, it is still considered as write-off
95
For write-downs, how much is the maximum principal amount (as a result of a dacion) could be approved by "credit write-off committee"?
2M
In excess of the said amount shall be elevated to the president and subject for ExCom or Board approval
96
Amounts and approvers for written-off accounts
- 500K - BFB CreCom
- 2M - BPI CreCom
- excess of 2M - ExCom
97
This refers to the properties acquired in order to settle existing loans or obligation.
ROPA
98
Manner of acquisition for Real Estate property.
- Extra-judicial foreclosure
- dacion en pago
- sum of money and attachment
99
In what manner do you acquire chattel properties?
- sum of money w/ replevin
| - voluntary surrender
100
Capital gains tax shall be paid __________.,from the expiration of the redemption ;
30 days ;
While documentary OTP shall be paid for 1 yean
101
Mode of disposal of ROPA properties.
- cash sale
- bank financing
- sales contract receivables
- redemption / buy-back
- others - write off; CARP
102
An account can be considered NPL if;
- it is a past due restructured loan
- restructured loan which defaulted on any principal or interest payment
- restructured loans with capitalized interest, which are not fully secured by REM
- restructured loans with interest lower than the bank's cost of funds
- all items in litigation
103
Documents required to implement credit. (8)
- credit offering
- implementing memo
- corporate papers
- signature cards
- facility letter
- board resolution
- loan agreements
- collateral documents
104
Code 1
Minor deficiencies / discrepancies (market Head / team head)
- specimen signature card to follow
- insurance policy not endorsed in favor of bank
- current RETR not on file
105
Code II
Material deficiencies / discrepancies (Team Head + Division Head)
- release of collateral prior to check clearing
- lien not yet annotated
- insurance policy to follow
- insurance policy expired
- facility letter for renewal, extension, increase/decrease of credit facilities not signed by sureties/guarantors
- & not signed by 3rd party mortgagor(subject for approval by at least GROUP HEAD)
106
Code III
Non-negotiable deficiencies (cannot be implemented without the approval of the President)
- no corporate papers
- no board resolution/authorization to borrow/enter into a lease contract or board resolution submitted is defective
- increase in availment of lines with existing past due
- no collateral/security documents
107
Types of contract (5)
- accessory
- consensual
- preparatory
- principal
- real
108
Characteristics of a contract (4)
- freedom of parties
- relativity
- obligatory force
- equality of parties
109
Life stages of a contract (3)
- generation
- perfection
- consummation
110
Elements of a contract (3)
- essential
- natural
- accidental
111
Parts of contracts (7)
- parties
- whereas clauses
- dispositive portion
- signatories
- testimonium clause
- acknowledgement
- jurat
112
Genereal documents required for pre-processing in a corporate account
- implementing memo
- instruction sheet
- board resolution
- PN
- specimen signature of borrower
- deficiency report from corporate credit facility management
113
Documents for credit origination
- credit offering
- offering memo
- implementing memo
114
This refers to the document presented to the approvers, where credit proposals are presented.
Credit offering
115
Refers to the document that is subject for approval, when some details of an already approved credit are changed, added or reduced..
Offering memo
116
Used when an approved facility is availed, paid etc.
Instruction sheet
117
Necessary fields to be filled out for customer creation in SICL (BSP requirement)
- facility & amount
- interest rate
- security
- facility expiry
- others
118
Basic functions of loan implementation and administration.
- customer set-up and line creation
| - deficiency reporting
119
Maximum term for renewed RPNL
180 days
Any deviation is subject for approval of from at least crecom vice chairman
120
What are the items that should be indicated in PN's disclosure statement?
- PN amount
- interest rate
- authorized signatories
- PN maturity date
- other terms & conditions
121
What are the mode of releases for loans?
- SICL batch credit
- manual credit to deposit account using BUDS tellering system
- manager's check
- debit-credit authority to treasury
122
Who are considered as "large borrowers"?
Those who have audited asset base of more than 100M
123
Asset base up to 100M including micro-borrowers w/ asset size up to 3M
SME borrowers
124
Loans vs assignment of deposits using SPA are allowed subject for
- approval from regional head
- endorsing branch must authenticate SPA & signature of depositors/assignor
- signing of PN shall be personally witnessed by at least 1 officer where deposit is lodged
- if SPA used is not BPI standard, clearance from BPI legal services division is needed.
125
What are the requisites when deposits owned by a 3rd party corporation, be used as security to a loan?
Submission of board & stockholders' resolution authorizing the company to assign its deposits & secure loans of borrower
126
"In trust for" accounts are allowed to secure loans. (T/F)
False
- not allowed to secure loan w/o proper court approval, since deposit is technically owned by a third party.
127
Are clients allowed to avail a loan (secured by deposits) equal to its deposit amount?
Yes, provided that interest of the loan is paid in advance.
- normally maximum loan value for loans secured by deposit is only 90%
128
Deposits under "drawn against uncollected deposits" are not allowed to secure loans. (T/F)
True
129
What is the maximum tenor for FCDU loans secured by FCDU deposits?
365 days
130
Those in the execution of w/c a public official takes part.
Official documents
131
What is the minimum loan amount for loans secured by deposits?
- Php500K or $10k
132
Do we accept FCDU deposits as security for a peso loan?
Yes
- conversion rate should be the buying rate on the date that the loan is approved or granted
133
What is the maximum loan amount If assignment of LC is used as security?
80% of assigned LC
134
Rules on renewals and extensions for RPNL . (7)
- term shall not exceed 1 year
- each extension period shall not exceed the original term
- maximum number of extension should not exceed 6 times
- extended PN's shall not exceed 180 days
- any extension of Pn's shall be subject for CreCom approval
- all terms & conditions shall remain unchanged
- extension of PN's w/ periodic payments shall not be allowed
135
Stages in the life of a contract. (3)
- generation
- perfection
- consummation
136
What are the classes of contract?(5)
- accessory
- consensual
- preparatory
- principal
- real
137
It is a class of contract, made for the purpose of assuring the performance of a prior contract.
Accessory
138
A contract's characteristic, states that agreement is limited only to the parties involved.
Relativity of a contract
139
Characteristics of a contract (4)
- freedom of both parties to contract
- relativity of contract
- obligatory force of contract
- equality of parties in a contract
140
Refers to the characteristic of a contract, that if it is perfected, it should be enforceable.
Obligatory force of contract
141
What are the parts of a contract? (7)
- parties
- whereas clause
- dispositive portion
- testimonium clause
- signatories
- acknowledgement
- jurat
142
These are presumed to be present in a contract unless s contrary has been stipulated.
Natural elements of a contract
143
These are stipulations in a contract that are agreed upon by both parties.
Accidental elements
144
Without w/c a contract can nit exist.
Ex. Consent of both parties, subject matter & cause or consideration
Essential elements
145
Refers to a person, assigned to represent in behalf of the principal, to enter into a contract.
Attorney-in-fact
146
Name the 4 categories of securities
- guarantee or general credit of a third party person
- properties
- those that can not create lien
- others
147
Securities under "guarantee or general credit of a third party"
- suretyship
- co-maker
- continuing guarantee
- subordination agreement
- standby LC
148
What are those securities stemmed from properties or things? (3)
- real estate mortgage
- chattel mortgage
- pledge
149
What are the securities that do not create lien?(3)
- deposits subject to assignment
- deposits subject to hold-out
- items/goods covered by trust receipts
150
Principal loan documents.
- PN
- loan agreement
- credit agreement
151
Collaterals
- suretyship
- co-maker
- subordination agreement
- continuing guarantee agreement
- standby LC
- real estate mortgage
- chattel mortgage
- pledge
- hold-out of deposit
- assignment of deposit
- goods/items covered by trust receipts
- assignment of insurance
- letter of comfort/awareness/support
- negative pledges
152
Trade finance business model
- generates fees
- strengthen profitability
- natural cross-selling to cash management
