NU12 Week11_Abrugena - Digitized forms

Good afternoon Sir!

Below is my NUIdea for Week 11. Thank you.

ABRUGENA, KRISTINE C.

June 16, 2012

NU12_Week11

New Process – Digitized Bank Forms

The establishment of credit facilities with the purpose of additional working capital for corporate client entails proper loan documentation. There are two types of sets of documents that need to be executed in order to facilitate clearance to avail against the credit lines. These are the loan documents and the availment documents. The former are the ones that are prepared by the Legal and Documentation group prior to issuance of clearance that states the terms and conditions which are binding and valid. These include the Credit Line Agreement, Continuing Surety Agreement, for lines that are secured by the suretyship of the principals of the company; the Real Estate Mortgage, for lines that are secured by real properties which are also to be annotated by the Registry of Deeds. Others are the Board Resolution or Secretary's Certificate which is to be executed by the company authorizing signatories to borrow against the line established by the Bank, the specimen signature cards and the Letter Advice that enlightens the client of the details and terms of the credit lines. The availment documents, on the other hand are those that are accomplished after the issuance of clearance, which means that the credit facilities are already in place and all pertinent documents are submitted by client. These comprise Promissory Notes, Letter of Credit Application, Agreement to Issue Bank Guaranty and Standby Letter of Credit and the like.

I could say that the documentation process is a bottleneck in the loan processing. The bank still uses hard copies on which we would type in the details of the corporation such as the corporate name, address, name of signatories, purpose and term of the loan, the details of government issued valid IDs of the signatories for notarial purposes and many other things. I find it very time-consuming to type the said details for every document, to think that each document requires 5 copies at the least and carbon papers are just not very appealing or neat. Moreover, typing is susceptible to errors and errors are congruent to the hassle of having the documents countersigned or wasted. I would like to suggest a database that would complement the digitized forms that are to be developed wherein all company details are already in the system. Once we search for the company, all details would just appear and it would automatically be fed in the selected documents as required in the loan facilitation. The digitized forms shall be in a protected format so the Bank is secured as to the terms and conditions stated therein since we can also have the option to forward these digitized forms to clients via email to eliminate the wasted time of transmitting the documents. That is one advantage because the availability of motorized messengers is also a factor in the delivery of documents. At least, once the documents are sent to client, they could countercheck the details, verify and they could print the documents themselves. Afterwhich, the forms shall be ready for transmittal to the bank. It is noted though that the signatures of the authorized signatories shall remain to be original on all copies still. The digitized forms are also helpful to the Legal group of our corporate clients because they could right then and there review the terms laid down by the Bank where they could easily give feedback by sending it back to us via email as well.  2