Provides an extra layer of financial security for Directors and Officers serving under government institutions by establishing a Directors’ and Officers’ Liability Fund (DOLF).

 

This type of service provided by the LANDBANK-TBG aims to shield Directors and Officers of Government-Owned or Controlled Corporations (GOCCs) from personal liabilities related to their official responsibilities and legal duties. In a Special Purpose Trust (SPT) arrangement, the client institution sells its assets or cash flows from its receivables to LANDBANK – Trust Banking Group (LANDBANK-TBG) (acting as an SPT) through a true sale and without recourse basis. LANDBANK-TBG, as owner of the assets or cash flows, then issues Asset-Backed Securities (ABS) evidencing claims to the cash flows. Proceeds from the issuance of the ABS are then used by the SPT to finance the purchase of the assets.