Definition of Terms.
Section 4
SEC. 4. Definition of Terms. - For the purpose of this Act. the following terms shall refer to: (a) Bangko Sentral - the Bangko Sentral ng Pilipinas established under Republic Act No. 7653; (b) Clearing - the process of transmitting, reconciling, and in some cases, confirming payment orders prior to settlement, and the establishment of final, payment obligations for settlement; (c) Designated payment system - the payment system that has been designated as such by the Bangko Sentral pursuant to this Act and its implementing rules and regulations; (d) Director - any member of the board of directors of a participant to the payment system, or a person considered as such under Bangko Sentral regulations: (e) End-user - any person who originally initiates the instruction to pay or the ultimate receiver of funds in a payment system; (f) Fund - any unit of value that forms the consideration or object of transactions; (g) Issuer - any person who provides the means or the instrument to hold or transfer funds: (h) Manager - any person of recognized competence in payment system designated by the Bangko Sentral to manage the operations of the operator of a designated payment system as provided under Section 17 hereof. For this purpose, personnel of the Bangko Sentral may be designated as manager; (i) Monetary Board - the Monetary Board of the Bangko Sentral; (j) Netting - an agreed offsetting of obligations by participants of payment systems; (k) Officer any person who is an employee holding a management position in any of the participants to the payment system, or a person considered as such under Sangko Sentral regulations; (l) Operator - any person who provides clearing or settlement services in a payment system, or defines. prescribes, designs, controls or maintains the operational framework for the system; (m) Participant — the operator, issuer, service provider, or any person involved in the payment system other than the end-user; (n) Payment instrument - any instrument, whether tangible or intangible, that enables a person to transfer funds: (o) Payment order - an order or message requesting the transfer of funds to the order of the payee; (p) Payment system - the set of payment instruments, processes, procedures and participants that ensures the circulation of money or movement of funds: (q) Payment System Management Body - £he entity organized by participants of the designated payment system for the purpose of self-regulation; (r) Service provider - an entity that provides process arrangements, technology or infrastructure to operators of a payment, system; (s) Settlement - an act that discharges obligations in respect of fund transfers between two (2) or more parties; and (t) Systemic risk - the risk that the failure of one (1) participant in a payment system, or in financial markets generally, to meet its required obligations will cause other participants or financial institutions to be unable to meet their obligations, including settlement obligations in a payment system, when due: Provided, That, such failure could threaten the stability of the system or financial markets.