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MANILA - The Bangko Sentral ng Pilipinas has directed banks to secure electronic titles for assets they have foreclosed.
In a memorandum to banks, the BSP said they must apply for electronic conversion of manually issued titles of land and other foreclosed properties.
The BSP said “e-titles” will better secure the claims of banks over their acquired real assets. E-titles will also protect banks from fraud arising from tampering of manually issued titles.
“To safeguard the claims of banks and other BSP-supervised institutions over securities and collaterals constituted over real properties, the aforementioned institutions should promote the conversion of manual titles to e-titles for properties received as collateral or security to loans,” BSP Deputy Governor Nestor Espenilla Jr. said in BSP Memorandum 2012-37 issued last Friday.
In the memorandum, the BSP likewise encouraged banks to secure e-titles for land and other properties owned by their borrowers and that serve as collateral for their active loans.
At end-May, the total value of real and other properties acquired, or assets foreclosed by universal and commercial banks stood at P107.84 billion. This was 11 percent lower than the P121.34 billion last year, according to data from the central bank.
The BSP issued the memorandum after the recent launch by the Land Registration Authority of its “e-title Program,” under which the LRA issues electronic versions of manually issued titles.
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