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SEC Memorandum Circular
No. 4
Series of 2002
TO
: All Pre-need
Plan Issuers
RE
: Paid-up Capital Requirement for Existing Pre-Need Companies
In
conformity with Rule 2 and other pertinent provisions of the Rules on the
Registration and Sale of Pre-Need Plans
under Section 16 of the Securities Regulation Code, the guidelines
on the minimum paid-up capital requirement
of existing pre-need companies are approved
as follows:
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A.
Existing Pre-Need Companies
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Paid-Up
Capital
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1) With traditional education plans
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P
100,000,000
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2) With three-type plans
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100,000.000
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3) With two-type plans
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75.000,000
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4) With one-type plan
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50,000,000
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B.
Pre-need companies selling two to three
types of pre-need plans with a minimum paid-up capital of P50 million but
below P75 million shall be authorized to sell only one plan type. The pre-need
companies concerned shall indicate their choice of plan type no later than May
7, 2002. However, pre-need companies are not precluded from infusing the
required paid-up capital to enable such companies to sell the plan types they
have been previously authorized to sell. This shall also apply to companies
selling traditional plans but do not meet the P100 million paid-up
requirement.
C.
Pre-need companies with paid-up capital below P50 million shall have a non-extendible
period of up to May 30, 2002 to put up the capital deficiency for a P50
million paid-up capital requirement for a one-type plan. Failure to comply
will be a ground for suspension of permit to sell.
D.
The minimum paid-up capital of new pre-need corporations shall remain at P100
million regardless of plan types.
For strict compliance.
EDSA,
City of Mandaluyong, Metro Manila,
Philippines
April
30 .
2002
(Original
Signed)
LILIA
R. BAUTISTA
Chairperson
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