For your information and guidance, kindly refer to the provisions of item K.1 of Subsection X326.1 of the Manual of Regulations for Banks on the definition of secured loan, borrowing or other credit accommodation, as follows:
k. Secured loan, borrowing or other credit accommodation shall refer to any loan or credit accommodation or portion thereof referred to in Sec. 327 which is secured by: (1) Real estate mortgage, chattel mortgage on tangible assets and pledge of jewelry, precious stones and other valuable articles.
Please be informed that the real estate mortgage provided therein must be registered with the Registry of Deeds and the chattel mortgage on chattel assets provided therein must be registered with the registry of deeds or other appropriate registry, in order for the loan or borrowing to be secured under said regulation.
To read the full details, kindly download the attached PDF m016
Thank you.
Are Pledge Loans (secured by jewelry) need to be registered also? If so what appropriate registry?
If not, do we need to reclassify these loans as unsecured or clean loans?
Thank you.
Sir, I think the best advice that we can provide at the moment is for you to contact the appropriate BSP department with regards to the registry that you are referring to.
I cant explicitly answer your question on the appropriate registry for jewelry; but with the pledge loans for secured jewelry, I think it depends on the agreement with a third part custodian. Admin.
I already did sending my query to some of my contacts at BSP even ahead of sending it to you, but until now I have not received any categorical reply or answer from them.
Anyway, thank you so much and God bless.
I would like to be enlightened as to how would a rural bank charge on yearly or annual percentage on a house and lot mortgaged with a rural bank as required by our existing bank law, please. I had mortgaged my house and lot property in the amount of Ps.600,000.00, and had been paying an interest of 18 (%) per annum. Thanks.