FURTHER AMENDING DEPARTMENT OF FINANCE ORDER NO. 141-95, AS AMENDED, ENTITLED “REVISED RULES AND REGULATIONS FOR THE ISSUANCE, PLACEMENT, SALE, SERVICE, AND REDEMPTION OF TREASU…

Pursuant to Republic Act. No. 7653, otherwise known as “The New
Central Bank Act” and in accordance with Republic Act No. 245, as
amended, the pertinent provisions of DOF Order No. 141-95, as amended by
DOF Order No. 81-96 dated June 10, 1996, DOF Order No. 32-98 dated
March 13, 1998 and DOF Order No. 2-98 are hereby amended/modified as
follows:

Sec. 1.   Part A (Auction Method), Chapter III (Method of Origination) is hereby amended as follows:

1.1    Sections 9 and 10 shall read as follows:

“SECTION 9 .            Public Notice of Offering. — The
Secretary of Finance may, from time to time, by public notice offer
Treasury Bills and Bonds for sale and invite tenders, therefore, through
the Bureau of the Treasury. The Treasury Bills and Bonds so offered,
and tenders received shall be subject to the terms and conditions
imposed under these rules and regulations, except as they may be
modified by the Secretary of Finance, in consultation with the Monetary
Board, which shall be made part of the public notice of offering. The
Public Notice of Offering shall be transmitted through the Bureau of the
Treasury’s Automated Debt Auction Processing System (ADAPS) and/or by any other method as may be prescribed by the Bureau of the Treasury and shall indicate such information as may be deemed appropriate by the Secretary of Finance.”

“SECTION 10.          Submission of Tenders. — Tenders in
response to a public notice shall be transmitted to the Bureau of the
Treasury (BTr) thru ADAPS, which is capable of electronically managing
the tender of Treasury Bills and Bonds, in the case of GSEDs and in
official tender forms required by the BTR before the prescribed cut-off
time for receiving tenders for manual entry to BTr’s ADAPS, in the case of NON-GSEDs.

In case of system failure, power outages or as may be authorized
by the Secretary of Finance, tenders shall be submitted in official
tender forms required by the Bureau of the Treasury before the
prescribed cut-off time for receiving tenders for manual entry to the
Bureau of the Treasury’s ADAPS.

Each tender shall be unconditional and shall be for an amount of not less than P10.0 Million (maturity value) for dealers and 1.0 Million (maturity value) for non-dealers.
In case of Treasury Bills, bids shall be stated in three (3) decimal
places e.g. 13.000%. Bids for Treasury Bonds shall be in multiples of
1/8 of 1% e.g. 13.125%. Non-competitive tenders shall be accepted at the
weighted average yield of the accepted competitive tenders.”

1.2.          SECTIONS 11, 12 and second paragraph of Section 14 shall read as follows:

“SECTION 11.          Receipt and Processing of Tenders by the Bureau of the Treasury.
— Tenders transmitted through the Bureau of the Treasury, prior to the
cut-off time fixed under Section 10 hereof, for the receipt of tenders
shall automatically be acknowledged by the ADAPS or stamped with the time-dated clock by the Securities Origination Division-Bureau of the Treasury (SOD-BTr),
as the case maybe. Neither the Department of Finance nor the Bureau of
the Treasury shall bear any liability whatsoever for any errors in
tenders received or for delays in the transmission of tenders.”

“All tenders received on time shall be deliberated upon
immediately after the cut-off time set by the Auction Committee composed
of the Secretary of Finance or any Undersecretary designated by him, as
Chairperson; the Treasurer of the Philippines, as Vice-Chairperson; the
Chairperson of the Securities and Exchange Commission or his authorized
representative, as Member; the Assistant Secretary for Domestic Finance
Group of the Department of Finance, as Member; the Deputy Treasurer for
Operations and the Deputy Treasurer for Planning and Policy, as
Members; and the Managing Director for Research of
Bangko Sentral ng Pilipinas, as Member. The Deputy Treasurer for
Operations shall also act as the Executive Officer. The Auction
Committee staff support shall be provided by the appropriate division of
the Bureau of the Treasury. The Secretary of Finance may designate an
additional member(s) in the Auction Committee as he may deem
appropriate.”

“SECTION 12.          Award by the Auction Committee. —
The Auction Committee shall make a decision as to the amount and rate of
the awards. Such decision shall be transmitted to the winning
GSEDs/Non-GSEDs through the Bureau of the Treasury’s ADAPS/BTr’s SOD
immediately after a Committee decision is confirmed. A member of the
Auction Committee shall be assigned to confirm the transmitted decision.
The Auction Committee shall then download the awarded securities to the
winning bidders’ Principal Securities Account in the RoSS. A member of
the Auction Committee shall likewise be designated to confirm the
downloaded information. Thereafter, the Auction Committee shall sign a
print-out of the auction results summary.”

“SECTION 14.          Payments of Awards. — x x x

On settlement date, the concerned GSED/Non-GSED shall instruct
Bangko Sentral ng Pilipinas (BSP) to debit their Demand Deposit Account
and credit the Demand Deposit Account of the Treasurer of the
Philippines maintained with the Bangko Sentral ng Pilipinas, which in
turn, shall send a credit advice to the Bureau of the Treasury.”

Sec. 2.       Part B (Over-the-Counter), Chapter III (Method of Origination) is hereby amended/modified as follows:

2.1       Items (b) and (c), Section 19 shall read as follows:

“SECTION 19.          GOCCs Placement. —

(b)     The applicable yields rates for Treasury Bills
issued to GOCCs shall be at a uniform rate equivalent to the lowest
acceptable yield rate of the immediately preceding Treasury Bills
auction, subject to the confirmation by the Secretary of Finance that
the rate is acceptable to him.

(c)     Treasury Bonds issued to GOCCs shall be
priced based on the current market yield. The applicable coupon rate
shall be based on the rate corresponding to the auctioned Treasury
Bonds, subject to the confirmation by the Secretary of Finance.”

2.2.      Item (b), Section 21 shall read as follows:

“SECTION 21.          LGUs Placement. —

(b)     Treasury Bonds issued to LGUs shall be
priced based on the current market yield. The applicable coupon rate
shall be based on the rate corresponding to the auctioned Treasury
Bonds, subject to the confirmation by the Secretary of Finance.”

Sec. 3.       Part C (Tap Method), Chapter III (Method of Origination) is hereby amended/modified as follows:

3.1.          Section 26 shall read as follows:

“SECTION 26.          Definition. — A manner of sale or
offering of Government Securities open exclusively to Government
Securities Eligible Dealers (GSEDs) and Financial Institutions in the
event of an acute and protracted shortage of government securities.

However, the newly established SMALL INVESTOR’S PROGRAM
(SIP) shall be open to SEC licensees and accredited agents of the BTr,
not necessarily GSEDs.

3.2           Item (a), Section 27 shall read as follows:

“SECTION 27.          Authority to Sell other than through Auction and through Negotiation. —

(a)     The tap window may be accessed by GSEDs/FIs from Monday through Thursday (with settlement and issue dates on Wednesdays, for T-Bills and on Thursdays, for T-Bonds) on a first come-first-serve basis. However,
in the case of the Small Investor’s Program (SIP), the window may be
accessed from Monday through Friday subject to settlement on the day of
placement.”

Sec. 4.    All Circulars, Memoranda or Orders inconsistent herewith are hereby revoked or modified accordingly.

Sec. 5.    This order shall take effect immediately.

16 Nov. 2000

(SGD.) EDGARDO B. ESPIRITU
Secretary
Department of Finance