Академический Документы
Профессиональный Документы
Культура Документы
Corporate Headquarters
Petron MegaPlaza
358 Sen. Gil Puyat Ave.,
Makati City
A. INSPECTION OF UNITS
The following provisions relating to Conversion of CTS accounts to REM are hereby
amended and shall read as follows:
1. Substantial Compliance
"A developer who is able to submit a copy of proof of payment to the BIR
(for Expanded Withholding Tax and Documentary Stamp Tax) and the
City/Municipal Assessor's Office (for Transfer Tax) shall be deemed as
having substantially complied with the conversion requirement. The
original receipts must be presented for authentication purposes.
Within thirty (30) working days from presentation of such proof, the
developer must submit a copy of the Certificate Authorizing Registration
(CAR) to the Fund. In case there are delays on the issuance of the CAR on
the part of the BIR, the developer shall submit a report to the Fund relative
to Ithe affected accounts.
Within fifteen (15) working days thereafter, the developer must also submit
a copy of proof of payment to the Registry of Deeds."
Item V-H
"The developer shall convert the security for eligible accounts from CTS to REM
but it shall not go beyond the 24th month of the seasoning period for
Window 1 and Window 2 accounts, or 36th month of the seasoning period
for Window 1 (Elite) accounts."
3. Conversion Period
"The developer shall begin converting eligible CTS accounts to Real Estate
Mortgage (REM) on the 18th month from date of loan takeout. In the case of
Window 1 (Elite), conversion shall commence on the so" month from date of
loan takeout. The developer may convert the CTS account earlier than the
18th or 30th month from loan takeout but it must be completed not later than
the 24th or 36th month of the seasoning period, whichever is applicable.
Conversion shall be reckoned from the release of the documents
necessary for conversion."
"In case the developer opted to use other instruments (such as Certificate of
Time Deposit, Pag-IBIG Housing Bonds, Trust/Escrow account, government
securities, etc.) instead of retention for conversion purposes, the Fund shall
process the release of the assigned instrument to the developer only upon
his compliance with the following:
Within seven (7) working days from compliance with the required documentation,
the assigned instruments shall be released to the developer or his representative
upon presentation of a duly notarized authorization letter."
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If the account is still not converted at the end of the seasoning period, the
developer may request for extension to complete the process of
conversion. He shall not be required to buyback the account and shall be
granted the extension, provided the following conditions are met:
5.2. The developer has already paid the appropriate taxes before the BIR
and the City/Municipal Treasurer's Office.
D. BUYBACK OF ACCOUNTS
1. Item VIII-E Sections 1 and 2 shall be amended, and shall read as follows:
1.1 The buyback value shall likewise bear an interest at the rate of 8.5%
per annum computed from the date of default or receipt of Notice of
Buyback due to breach of warranties, whichever is applicable, up to
the actual date of settlement. No interest will be charged beyond the
buyback period.
1.2 The buyback value shall be paid within ninety (90) days from receipt of
Notice of Buyback in case of default, or within fifteen (15) days from
receipt of Notice of Buyback for breach of warranties.
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1.3 A penalty shall be charged equivalent to 1/20 of 1% of the amount due per
day of delay from the expiration of the prescribed buyback period up to the
actual date of settlement"
2. The remedies available to the developer, as provided in Item VIII-D of Gir. 259
(borrower's updating and replacement of accounts), shall only be applicable to
accounts that are taken out under Cir. 259 but not to accounts taken out under
Gir.287.
4. If after the developer has already bought back the GTS account, the member-
borrower signified his intent to update his account within the gO-day buyback
period, the developer shall be entitled to a refund of the buyback value previously
paid. However, the Fund shall return said amount only after the member-
borrower has fully updated his account.
5. In case of failure of the developer to buyback the account or failure to avail of any
acceptable remedies within the specified 90-day grace period, HDMF shall
automatically offset the total amount due against subsequent takeout proceeds
or from any amount due the developer, if any, within five (5) calendar days from
the date the 90-day grace period expires. Similarly, offsetting shall be carried out
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within five (5) calendar days from expiration of the 15-day grace period given to
the developer in case the call for buyback is due to breach of warranties.
6. The developer may file an appeal to the Group Vice President regarding
accounts for buyback within five (5) working days from receipt of Notice of
Buyback/Breach of Warranties only if the issuance of the said notice or the
computation of the buyback value was arrived at in disregard of HDMF policies or
procedures. The issue must be resolved before the expiration of the ninety-day
or fifteen-day period, whichever is applicable.
Accounts that are taken out under HDMF Circular No. 287 shall no longer be
covered by the developer's buyback guaranty, except in cases of breach of
warranties.
F. EFFECTIVITY
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ATTY. DARLENE MARIE B. BERBERABE
Chief
ExeCUlivefr
Makati City,
o_c_t_o_be_r_2_B __ , 2011