GTEB Circular No. 036 (1992)

(NAR) VOL. III NO. 3 / JULY - SEPTEMBER 1992

[ GTEB CIRCULAR NO. 036, June 26, 1992 ]

POLICIES ON TRANSFERS, SWAPS AND SHIFTS

1. The Board on 11 and 25 June 1992 adopted the pertinent policies with respect to TRANSFERS, SWAPS AND SHIFTS as follows: Transfers Swaps Shifts a. Maximum Allowable The maximum The quantity to The allowable Quantity quantity to be be swapped percentages on transferred is may be up to EQ holdings 30% of firm's 100% of firm's based on the EQ holdings EQ holdings RP-US under the Bilateral category Agreement concerned. with prior approval of the Board unless the latter decides otherwise.

b. Disqualification Transferors are Disqualification Disqualification Provision disqualified to provisions on to shift is a bid in the transfer applies. matter for category where consideration the transfer is of the Board. made within 60 days from date of transfer.

c. Restoration Restoration to Restoration to Restoration transferors in the source based on actual the following category/firm quantity year to the to the extent of performed. extent of quantity quantity performed by performed by the firm. the transferee.

d. Forfeiture 50% forfeiture/ Penalty Penalty penalty based provision on provision not on the lower transfer applies. applicable. quantity transferred for two (2)consecutive years.

e. Surrender Transferred Surrender Surrender quantity may provision on provision on be surrendered transfer applies. transfer applies. without monetary penalty within30 days from date of transfer, However, no restoration to the transferor.

f. Non-Utilization The transferee The recipient The holder shall be liable shall be liable shall be liable to pay the the to pay the to pay the monetary monetary monetary penalty of PO. penalty of PO. penalty of PO. 12/SME of 12/SME of 12/SME of quantity quantity quantity unperformed in unperformed in unperformed in accordance accordance in accordance with the rules. the rules. with the rules.

g. Others A transferred A swapped A shifted quantity cannot quantity cannot quantity can be be re- be re-swapped. transferred transferred but provided the can be shifted. forfeiture provision on 2 consecutive years on transfers shall apply to the original category before the shift. No monetary No monetary ____________ consideration consideration shall be shall be involved in the involved in the transfer. swap arrangement transfer.

h. Service/ Processing Service fee of P200 per P200 per Fee PO 06/SME of transaction per transaction, quantity party. transferred.

i. Time Limit 72 hours from 72 hours from 72 hours from date of filing. date of filing. Board approval.2. For purpose of uniformity, the computation of Net EQ with respect to TRANSFERS, SWAPS AND SHIFTS shall be as follows: Total xxx.

EQ

Less: Transfers xxx Swaps xxx Shifts xxx xxx ---- ---- Net EQ xxx 3. All other previous Circulars and Memoranda inconsistent with the present policies are hereby repealed.

4. The Circular shall take effect 15 days after its release. For guidance and information. Adopted 26 June 1992

(SGD.) ATTY. AURORA MA. F. TIMBOL Executive Director