CHOM 435

10 June 2009

TO : All Clearing Banks/Institutions

RE : AMENDMENT OF CLEARING HOUSE RULES AND REGULATIONS (CHRR) SECTION 4 - PARTICIPANTS

CHRR Sec. 4 - PARTICIPANTS

Application for participation in MICR clearing shall be made to the President who shall, in turn, submit the application to the Board of Directors for consideration. An affirmative vote of the majority of the Board of Directors shall be required for the entry of an entity asa clearing participant.

4.1 General Criteria/Guidelines for Admission

a) Applicant must be a banking institution which operates as such under a charter, or

certificate of authority granted by the Bangko SentralNg Pilipinas;

b) Applicant must expressly state in its letter that it agreesto be bound by the policies and

promulgations of the Board and all the Rulesand Regulationsof the PCHC;

c) An applicant is admitted as a "direct" or an "indirect" participant in accordance with the

criteria prescribed under Sub-section4.2 herein.

4.2 Classes of Participants

4.2.1 Direct Clearing Participants must comply with the following requirements:

(a) Commercial Banking Institutions which are members of the Bankers Association of the Philippines (BAP) must

own equity holdings with PCHC representing equal shareholdings of each stockholder member plus the

corresponding premium to be assessed thereon as prescribed by the Board of Directors.

(b) For Non-Commercial Banking (Non-KB) Institutions applying asnon-stockholder (Associate) members of the

PCHC Check Clearing, they shall be required to pay a one-time non-refundable entry fee equivalent to the

book value of 21,000 PCHC shares + 50% premium but not lower than the contribution of the last approved

participant (KBor non-KB).

(c) The refundability/creditability of the existing refundable deposit of Associate Members shall be subject to the

following conditions:

1) Conversion To Commercial Bank

For current Associate Members that may convert to a commercial bank (KB), they may opt to avail themselves

of the application of the refundable portion of their entry deposit as payment for the book value of 21,000

shares + 50% premium but not lower than the contribution of the last approved participant. This would entitle

them to the full range of PCHC product/service lines. Otherwise, they may retain their current status as an

associate member which participation is limited to check clearing only.

CHOM.435.Amendment of CHRR Sec 4

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