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ELVA T.

DEPANO
CISA

OBJECTIVES OF CISA (LGU), its subsidiaries and affiliates, that applies


for and/or avails of a credit facility.
>To establish a comprehensive and centralized
credit information system for the collection and
dissemination of fair and accurate information
(d) “BSP” refers to the Bangko Sentral ng
relevant to, or arising from, credit and credit-
Pilipinas, created under Republic Act No.7653.
related activities of all entities participating in
the financial system.

>Directly address the need for reliable credit (e) “Corporation” refers to the Credit
information concerning the credit standing and Information Corporation established under
track record of borrowers. Section 5 of this Act.

DEFINITION OF TERMS (f) “Credit facility” refers to any loan, credit line,
guarantee or any other form of financial
(a) “Accessing Entity” refers to any submitting
accommodation from a submitting entity:
entity or any other entity authorized by the
Provided, That for purposes of this Act, deposits
Corporation to access basic credit data from the
in banks shall not be considered a credit facility
Corporation.
extended by the depositor in favor of the bank.

(b) “Basic Credit Data” refers to positive and


(g) “Credit Rating” refers to an opinion regarding
negative information provided by a borrower to
the creditworthiness of a borrower or of an
a submitting entity in connection with the
issuer of debt security, using an established and
application for and availment of a credit facility
defined ranking system.
and any information on the borrower’s
creditworthiness in the possession of the
submitting entity and other factual and objective
information related or relevant thereto in the (h) “Credit Report” refers to a summary of
submitting entity’s data files or that of other consolidated and evaluated information on
sources of information: Provided, that in the creditworthiness, credit standing, credit
absence of a written waiver duly accomplished capacity, character and general reputation of a
by the borrower, basic credit data shall exclude borrower.
confidential information on bank deposits
and/or clients funds under Republic Act No. 1405
(Law on Secrecy of Bank Deposits), Republic Act (i) “Government Lending Institutions” refers to
No. 6426 (The Foreign Currency Deposit Act), existing and future government (GFIs),
Republic Act No. 8791 (The General Banking Law government-owned and controlled corporations
of 2000), Republic Act No. 9160 (Anti-Money (GOCCs) primarilly engaged in lending activities.
Laundering Law) and their amendatory laws.

(j) “Negative Credit Information” refers to


(c) “Borrower” refers to a natural or juridical information/data concerning the poor credit
person, including any local government unit performance of borrowers such as, but not
limited to, defaults on loans, adverse court
ELVA T. DEPANO
CISA

judgments relating to debts and reports on reports, ratings and other similar credit
bankruptcy, insolvency, petitions or orders on information products and services.
suspension of payments and corporate
rehabilitation.
(q) “Submitting Entity” refers to any entity that
provides credit facilities such as, but not limited
(k) “Non-Accessing Entity” refers to an entity to, banks, quasi-banks, trust entities, investment
other than a Submitting Entity, Special Accessing houses, financing companies, cooperatives,
Entity or Borrower that is authorized by the nongovernmental, micro-financing
Corporation to access credit information from a organizations, credit card companies, insurance
Special Accessing Entity. companies and government lending institutions.

(l) “Outsource entity” refers to any accredited WHAT ARE THE SUBMITTING ENTITIES
third party provider to whom the Corporation
The following entities shall submit to
may outsource the processing and consolidation
Corporation current, objective, factual and basic
of basic credit data pertaining to a borrower or
credit data, both positive and negative, on all
issuer of debt or convertible securities under
their data subjects within sixty (60) days from the
such qualifications, criteria and strict
effectivity of these Rules:
confidentiality guidelines that the Corporation
shall prescribe and duly publish. a) Universal, commercial and thrift banks,
including their trust departments, rural
banks and entities with quasi-banking
(m) “Positive credit information” refers to license issued by the BSP, including their
information/data concerning the credit subsidiaries and/or affiliates that are
performance of a borrower such as, but not engaged in the business of providing
limited to, information on timely repayments or credit;
non-delinquency. b) Life insurance companies, mutual
benefit associations and other similar
entities supervised by the Insurance
(n) “Relevant Government Agencies” refers to Commission;
the Department of Finance, Department of c) Credit card companies;
Trade and Industry, Bangko Sentral ng Pilipinas, d) Financing companies;
Insurance Commission and the Cooperative e) Trust entities;
Development Authority. f) Investment houses with quasi-banking
license;
g) Non-governmental organizations
(o) “SEC” refers to the Securities and Exchange engaged in the micro financing business;
Commission. and;
h) Government lending institute=ions, both
GFIs and GOCCs engaged primarily in
(p) “Special Accessing Entity” refers to a duly lending;
accredited private corporation engaged
primarily in the business of providing credit
ELVA T. DEPANO
CISA

i) Cooperatives engaged in lending subject to the following requirements, among


activities such as credit cooperatives or others:
financial services cooperatives; and
Special Accessing Entities shall be accredited by
j) Such other entities that may be
the Corporation in accordance with such
considered eligible as submitting entity
standards and rules as the SEC in coordination
by the Corporation from time to time.
with the relevant government agencies, may
prescribe.

Credit Information Corporation They shall be entitled access to the Corporation’s


pool of consolidated basic credit data, subject to
>to receive and consolidate basic credit data, to
the restrictions provided by the law and related
act as a central registry or central repository of
implementing rules and regulations.
credit information
They are prohibited from releasing basic credit
> to provide access to reliable, standardized
data received from the Corporation or credit
information on credit history and financial
reports and credit ratings derived from the basic
condition of borrowers. The SEC Chairman shall
credit data received from the Corporation, to
be the Chairman of the Board of Directors of the
non-accessing entities unless the written
Corporation.
consent or authorization has been obtained from
the Borrower. However, in case the borrower is
a local government unit (LGU) or its subsidiary or
Who are allowed to access the Basic Credit Data? affiliate, the special accessing entity may release
The Corporation shall be authorized to release credit information on the LGU, its subsidiary or
and disclose consolidated basic credit data only affiliate upon written request and payment of
to certain entities. Basic Credit Data released to reasonable fees by a constituent of the
Accessing Entities shall be limited to those concerned LGU.
pertaining to existing Borrowers or Borrowers
with pending credit applications. Credit 3. Outsource Entities. An “outsource entity”
information shall not be released to entities refers to any accredited third party provider to
other than those enumerated below, except whom the Corporation may outsource the
upon order of the court. The entities authorized processing and consolidation of basic credit data
to access the credit information are the pertaining to a borrower or issuer of debt or
following: convertible securities under such qualifications,
criteria and strict confidentiality guidelines that
1. Accessing Entities. An “accessing entity” refers the Corporation shall prescribe and duly publish.
to any submitting entity or any other entity Outsource Entities, which may process and
authorized by the Corporation to access basic consolidate basic credit data, are absolutely
credit data from the Corporation. Accessing prohibited from releasing such data received
Entities shall hold strictly confidential any credit from the Corporation other than to the
information they receive from the Corporation. Corporation itself.
2. Special Accessing Entities. A “Special Accessing 4. Borrowers. A “borrower” is a natural or
Entities” is a duly accredited private corporation juridical person, including any local government
engaged primarily in the business of providing unit (LGU), its subsidiaries and affiliates, that
credit reports, ratings and other similar credit applies for and/or avails of a credit facility.
information products and services. They are
ELVA T. DEPANO
CISA

A “Non-Accessing Entity” refers to an entity revoked, in addition to the possible criminal


other than a Submitting Entity, Special Accessing liability of violators.
Entity or Borrower that is authorized by the
Corporation to access credit information from a
Special Accessing Entity. While a Non-Accessing
Entity is not among the enumerated entities
authorized to access consolidated Basic Credit
Data under the third paragraph of Section 6, its
definition (Section 3) and its obligation to
observe the confidentiality of information (first COLLECTION OF INFORMATION BY
paragraph of Section 6) indicate that it is allowed CORPORATION
to access relevant information. 1. Banks, quasi-banks, their subsidiaries and
affiliates, life insurance companies, credit card
companies and other entities that provide credit
BASIC RIGHTS OF BORROWER facilities are required to submit basic credit data
1. The borrower has the right to know the causes and updates thereon on a regular basis to the
of refusal of the application for credit facilities or Corporation.
services from a financial institution that uses
basic credit data as basis or ground for such a
refusal. 2. The Corporation may include other credit
providers to be subject to compulsory
participation. All other entities qualified to be
2. The borrower, for a reasonable fee, shall have, submitting entities may participate subject to
as a matter of right, ready and immediate access their acceptance by the Corporation.
to the credit information pertinent to the
borrower. In case of erroneous, incomplete or
misleading credit information, the subject 3. Participating submitting entities are required
borrower shall have the right to dispute the to submit to the Corporation any negative and
erroneous, incomplete, outdated or misleading positive credit information that tends to update
credit information before the Corporation. and/or correct the credit status of borrowers.

3. Confidentiality of credit information. The 4. The Corporation should regularly collect basic
Corporation and other parties shall hold the credit data of borrowers at least on a quarterly
credit information under strict confidentiality basis to correct/update the basic credit data of
and shall use the same only for the declared said borrowers.
purpose of establishing the creditworthiness of
the borrower. The accreditation of an accessing
entity, a special entity and/or an outsource 5. The Corporation may also access credit and
entity which violates the confidentiality of, or other relevant information from government
which misuses, the credit information accessed offices, judicial and administrative tribunals,
from the Corporation, may be suspended or prosecutorial agencies and other related offices,
as well as pension plans administered by the
government.
ELVA T. DEPANO
CISA