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2. “Offshore Banking Unit” or “OBU” shall refer to a branch a foreign banking

corporation which is duly authorized by the BSP to transact offshore banking business in
the Philippines.

3. “Net office funds” shall refer to the net credit balance of the “Due to Head
Office (HO)/Branches” after deducting the “Due from HO/Branches”, as shown in the
following computation:

Due to HO/Branches

Remittances/Advances/Deposits to OBU by
HO/Branches xxxxxxx

Unremitted earnings of OBU xxxxxxx

Total USD x x x x x x x

Less: Due from HO/Branches

Remittances/Advances/Deposits of OBU with its

HO/Branches xxxxxxx

Net Office Funds USD x x x x x x x

4. “Deposits” shall refer to funds in foreign currencies which are accepted and
held by an OBU in the regular course of business, with the obligation to return an
equivalent amount to the owner thereof, with or without interest.

5. “Resident” shall refer to –

a) an individual citizen of the Philippines residing therein; or
b) an individual who is not a citizen of the Philippines but is
permanently residing14 therein; or
c) a corporation or other juridical person organized under the laws of
the Philippines; or
d) a branch, subsidiary, affiliate, extension office or any other unit of
corporations or juridical persons which are organized under the laws
of any country and operating in the Philippines, except OBUs.

6. “Non-resident” shall refer to an individual, a corporation or other juridical

person not included in the definition of resident.

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Residents include any individual, citizen or otherwise, who has resided in the Philippines for a year or
longer, as defined in Section 83 of the IMF Balance of Payments Textbook, 1996.
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