Why do I need to provide suretyship agreement of my partner?

We will require a surety agreement (on top of usual Secretary’s Cert) if

• A corporation is >50% owned by a single juridical entity and is deemed as a “Shell Entity”, they will be required to have the parent company or the major shareholder company as the surety, provided that the surety is not a shell entity.

1. A “Shell Entity” is defined as a business or corporation that exists on paper but lacks significant assets, operations, or active business activities.
2. Juridical Entity” includes both domestic and foreign buyers.
3. The surety must not be a shell entity as well. If the parent company or the major shareholder company is a shell entity, the ultimate parent company or the ultimate beneficial owner must be the surety.
4. A Suretyship Agreement must be accomplished.
   • Signatories
     • Surety representative - President, Chairman, Officer stated in the GIS or duly authorized person* by the Board of Directors of the Corporation.
     • Client/Lead - Authorized Representative/PTP
     • First Circle - Bianca Baylosis or Ben Carandang

• • Supporting document required
    • GIS or equivalent of the Surety
    • ID of the Surety Representative
    • Two (2) signed copies of Suretyship Agreement (FC’s hard copy will be kept by RiskOps)
    • Secretary’s Certificate for appointing the duly authorized representative of the Surety*
      • Required only if the surety representative is not found in the GIS or equivalent document (i.e. not the President, Chairman or Officer)
      • Notarization not required
  • A corporation is >50% owned by foreign individuals. Surety must be a stockholder and a Filipino.
    

    • A Suretyship Agreement must be accomplished

      [Template as of Nov 6] Surety Agreement for Customers - Individual.docx

      • Signatories
        • Individual Surety
        • Client/Lead - Authorized Representative/PTP
        • First Circle - Bianca Baylosis or Ben Carandang
      • Supporting document required
        • ID of the Surety
        • Two (2) signed copies of Suretyship Agreement (FC’s hard copy will be kept by RiskOps)
      • The surety must pass the standard credit checks and KYC.
      • A customer requiring a surety may be RCL Verified without the Suretyship Agreement, but will not be allowed to drawdown.