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remittance of the full amount by the depository bank to the creditor at

the target prepayment date.

e. The foreign exchange selling institution shall see to it that documents

evidencing payment of applicable documentary stamp tax, if any, are
presented/available.

f. The foreign exchange sold shall be duly reported by the

foreign exchange-selling AAB under FX Form 1 (Consolidated Report on
Foreign Exchange Assets & Liabilities) – Schedule 4 following the
deadline for submission of FX Form 1.

5. AABs and AAB-forex corps may sell foreign exchange without prior BSP
approval for prepayment (i.e., payments before original due dates) of the following
loans that are not publicly-guaranteed: (i) foreign/foreign currency loans of non-bank
financial institutions with quasi-banking functions; and (ii) foreign currency loans of the
private sector, subject to documentary requirements listed under Appendix 1 hereof.

6. To purchase foreign exchange for loan-related payments, the duly

accomplished Application To Purchase Foreign Exchange (Annex A) shall be submitted
to the foreign exchange selling AAB/AAB-forex corp with the documents listed under
Appendix 1 hereof.

7. All loan payments made, irrespective of the source of the foreign

exchange used, shall be reported by the borrower concerned to BSP-IOD using the
prescribed form (Annex E.2).

(As amended by Circular No. 698 dated 5 November 2010, Circular No. 794 dated
18 April 2013, Circular No. 818 dated 6 November 2013 and Circular No. 925 dated
13 September 2016)

Section 30. Approval/Registration and Servicing of Guarantees

1. The following guarantees shall require prior BSP approval:

a. Guarantees for account of the public sector as well as those to be

issued by government-owned and controlled corporations in favor of
non-residents; and

b. Guarantees issued by foreign banks and financial institutions to

secure obligations of residents partaking the nature of a foreign loan which
require prior BSP approval pursuant to Section 23.

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