2011 R - 044 - AUTHORIZING THE CHAIRMAN AND TREASURER TO OPEN A NEW ACCOUNT WITH THE PHILIPPINE NATIONAL BANK AND DEPOSIT ₱ 1,010,000.00 THERETO

Excerpts from the Minutes of the Regular Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 26 October 2011 at the CHD Conference Room

Resolution No. 2011-044 - AUTHORIZING THE CHAIRMAN AND TREASURER TO OPEN A NEW ACCOUNT WITH THE PHILIPPINE NATIONAL BANK AND DEPOSIT ONE MILLION TEN THOUSAND PESOS (₱ 1,010,000.00) THERETO

WHEREAS, Philippine National Bank (PNB), one of the leading banks in the country, is offering a Long Term Negotiable Certificate of Deposit (LTNCD) with an interest rate of 5.25% per annum for a period of five years;

WHEREAS, OCGEMPC has reserved funds deposited in Planters Bank and the OCGEMPC Board finds it more beneficial to the coop if the said fund will be deposited to PNB to avail of the said LTNCD;

NOW THEREFORE, upon motion duly made and seconded, the Board of Director of the OCGEMPC in session assembled do hereby:

RESOLVE AS IT IS HEREBY RESOLVED to authorize, as it hereby authorizes the Chairman and Treasurer to withdraw One Million Ten Thousand Pesos (₱ 1,010,000.00) from Planters Bank and invest One Million Pesos (₱ 1,000,000.00) to Long Term Negotiable Certificate of Deposit (LTNCD)

RESOLVED FURTHER, to authorize, as it is hereby authorizes the Chairman and the Treasurer to open a new savings account with the Philippine National Bank (PNB) and deposit the (₱ 10,000.00) to the said new PNB savings account

RESOLVED FURTHERMORE, that interests earned from the said investment shall be deposited to the PNB savings account of OCGEMPC

Done this 26th day of October 2011.

2011 R - 039 - SUPPLEMENTAL LOANS POLICY INCREASING THE NUMBER OF CO-MAKERS FOR LARGE AMOUNTS OF LOANS

Excerpts from the Minutes of the Regular Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 18 August 2011 at the OCGEMPC Training Room, City Hall, Olongapo City

Resolution No. 2011-039 - SUPPLEMENTAL LOANS POLICY INCREASING THE NUMBER OF
CO-MAKERS FOR LARGE AMOUNTS OF LOANS

WHEREAS, there is a shortage of members who qualify as co-makers for large amounts of loans because few have the required capacity to pay;

WHEREAS, many members are suggesting that multiple co-makers for a single loan would be benefit those who need larger loans, and at the same time provide better security for the cooperative;

NOW THEREFORE, on motion of Director Helson C. Cañero, seconded by Director Ira B. Daylo the Board of Directors of the OCGEMPC in meeting assembled do hereby:

RESOLVE, AS IT IS HEREBY RESOLVED, that except for secured loans, loans amounting from P40,000 to P50,000 shall require two co-makers, while loans amounting to more than P50,000 shall require three co-makers;

RESOLVE FURTHER, that a single co-maker shall be allowed for a loan amounting to more than P40,000 when the co-maker of such a loan is a permanent employee, has the capacity to pay for the loan, and waives his/her privilege to avail of any loan until the loan that he/she co-makes is fully paid;

Done this 18th day of August 2011 at Olongapo City, Philippines.

2011 R - 038 - HIRING OF LOANS OFFICER; AND FOR OTHER PURPOSES

Excerpts from the Minutes of the Regular Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 18 August 2011 at the OCGEMPC Training Room, City Hall, Olongapo City

Resolution No. 2011-038 - HIRING OF LOANS OFFICER; AND FOR OTHER PURPOSES

On motion of Director Ira B. Daylo, and second motion of Director Genia R. Eclarino, the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative in meeting assembled do hereby:

RESOLVE, AS IT IS HEREBY RESOLVED, that Mr. Christian Paul Alba be hired, as he is hereby hired as Loans Officer of the OCGEMPC on a probationary status for a period not to exceed six (6) months effective on 01 September 2011, with a daily Basic Wage of Two Hundred Seventy-seven Pesos (P277) and daily cost of Living Allowance of Twenty-eight (P28), in conformance with the latest Wage Order issued by the Regional Wage Board;

RESOLVE FURTHER, that the daily allowance of Ms. Rosalyn Jadulco as staff trainee of the OCGEMPC be, as it hereby increased from Two Hundred Pesos (P200) to Two Hundred Fifty Pesos (P250) effective on 01 September 2011;

RESOLVED FURTHERMORE that wages, benefits and conditions of work of all the OCGEMPC management staff be reviewed and adjusted in the last quarter of 2011 to conform with the pertinent provisions of the Philippine Labor Code and other laws and issuances regarding labor.

Done this 18th day of August 2011 at Olongapo City, Philippines.

2011 R - 037 - CHARGING SERVICE FEES ON CAPITAL SHARES WITHDRAWN WITHIN ONE YEAR OF MEMBERSHIP

Excerpts from the Minutes of the Regular Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 18 August 2011 at the OCGEMPC Training Room, City Hall, Olongapo City

Resolution No. 2011-037 - CHARGING SERVICE FEES ON CAPITAL SHARES WITHDRAWN
WITHIN ONE YEAR OF MEMBERSHIP

On motion of Director Joseph G. Antonio and second motion by Director Ira B. Daylo, the Board of Directors of the OCGEMPC in meeting assembled do hereby:

RESOLVE, AS IT IS HEREBY RESOLVED, that effective on 01 October 2011, a service fee of Fifty Pesos (P50) per month shall be charged on the capital shares of a member whose membership on the OCGEMPC is terminated for any reason whatsoever before the first anniversary of the said membership;

RESOLVE FURTHER, that the hereby imposed monthly service charge shall be applied to every full month that such capital shares account was maintained y the OCGEMPC, and the service charge shall be deducted from the capital shares to be returned to the terminated member.

Done this 18th day of August 2011 at Olongapo City, Philippines.

2011 R - 036 - REVISING THE POLICIES ON SAVINGS DEPOSITS

Excerpts from the Minutes of the Regular Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 18 August 2011 at the OCGEMPC Training Room, City Hall, Olongapo City

Resolution No. 2011-036 - REVISING THE POLICIES ON SAVINGS DEPOSITS

On motion of Director Ira B. Daylo, seconded by Director Jerico C. Ballon the Board of Directors of the OCGEMPC, in meeting assembled do hereby:

RESOLVE, AS IT IS HEREBY RESOLVED, that the existing OCGEMPC policies on savings deposits be revised, as they are hereby revised effective on 01 October 2011, as follows:

1. The minimum balance required to maintain a savings deposit account is FIVE HUNDRED PESOS (P500) for those who have been OCGEMPC members for more than one (1) year. These members, whose savings account balances are less than P500 shall be given a chance, until February 2012, to increase their savings balances to at least the minimum amount; provided that after February 2012, those with more one year membership whose savings account balances are below P500 shall be considered as not in good standing for the year 2011.

2. The minimum average monthly balance to earn interest is FIVE THOUSAND PESOS (P5, 000) in the preceding year, to be computed and compounded annually.

3. The minimum amount that may be withdrawn from a savings account is ONE HINDRED PESOS (P100).

4. Withdrawals amounting to TEN THOUSAND PESOS (P10, 000) or more shall be released in the form of checks.

5. Savings accounts that have been dormant for twelve (12) months shall be charged a monthly service fee of FIFTY PESOS (P50).

Done this 18th day of August 2011 at Olongapo City, Philippines.

2011 R - 035 - AUTHORIZING THE CHAIRMAN TO FILE LEGAL CASES AGAINST FERNANDO MAGRATA, REYNALDO ERINGCO, AILEEN SANCHEZ AND LETICIA DOROPAN

Excerpts from the Minutes of the Regular Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 22 July 2011 at the Board Room of the Subic Bay Water Regulatory Board, Subic Bay Freeport Zone

Resolution No. 2011-035 - AUTHORIZING THE CHAIRMAN TO FILE LEGAL CASES AGAINST FERNANDO MAGRATA, REYNALDO ERINGCO, AILEEN SANCHEZ AND LETICIA DOROPAN

WHEREAS, Mr. Fernando Magrata, Mr. Reynaldo Eringco, Ms. Aileen Sanchez and Ms. Leticia Doropan were able to anomalously acquire unusually large amounts of loans in violation of existing OCGEMPC policies, rules and regulations;

WHEREAS, the OCGEMPC is having difficulties in collecting the said loans from the above-named persons and such difficulty in collection is adversely affecting the financial operations of the OCGEMPC to the detriment of the OCGEMPC members’ interests;

WHEREAS, after exerting much effort to collect but without success, the Board deems it necessary to file legal cases against the above-named persons not only to seek justice for the OCGEMPC but also to send a strong message to the present and future officers of the cooperative that anomalous transactions and practices are not tolerated in the OCGEMPC;

NOW THEREFORE, upon motion by Director Ira B. Daylo and second motion of Director Joseph G. Antonio, the members of the Board of the OCGEMPC in meeting assembled do hereby:

RESOLVE, AS IT IS HEREBY RESOLVED, to file legal cases against Mr. Fernando Magrata, Mr. Reynaldo Eringco, Ms. Aileen Sanchez and Ms. Leticia Doropan;

RESOLVED FURTHER, that the Chairperson of the OCGEMPC Board to be authorized, as he is hereby authorized to seek legal counsel for the purpose of determining what cases could be filed based on the circumstances and evidence at hand, and to file the appropriate cases on behalf of the OCGEMPC.

Done this 22nd day of July 2011 at Subic Bay Freeport Zone, Philippines.

2011 R - 034 - AMENDING THE POLICY AND PROVIDING ADDITIONAL GUIDELINES REGARDING THE LOAN PROTECTION FUND

Excerpts from the Minutes of the Regular Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 22 July 2011 at the Board Room of the Subic Bay Water Regulatory Board, Subic Bay Freeport Zone

Resolution No. 2011-034 - AMENDING THE POLICY AND PROVIDING ADDITIONAL GUIDELINES
REGARDING THE LOAN PROTECTION FUND

Upon motion duly made and seconded, the members of the Board of Directors of the OCGEMPC in meeting assembled do hereby:

RESOLVE AS IT IS HEREBY RESOLVED, that Resolution No. 2011-025 otherwise known as the OCGEMPC Consolidated Credit and Collection Policies be amended, as it is hereby amended to the effect that:

1. The Loan Protection Fund (LPF) which is being deducted form the proceeds of certain types of loans, shall be increased from one half percent (1/2%) to one percent (1%);

2. The LPF shall be used solely to offset loans, interests and penalties forfeited as a result of a member’s death or involuntary incapacity;

3. In case of no. 2 above, the LPF shall be used only when the capital shares and savings of the deceased or incapacitated member and the co-maker are insufficient to offset the forfeited amounts.

Done this 22nd day of July 2011 at Subic Bay Freeport Zone, Philippines.

2011 R - 033 - PROVIDING ADDITIONAL FUNCTIONS TO THE EDUCATION AND TRAINING COMMITTEE

Excerpts from the Minutes of the Regular Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 22 July 2011 at the Board Room of the Subic Bay Water Regulatory Board, Subic Bay Freeport Zone

Resolution No. 2011-033 - PROVIDING ADDITIONAL FUNCTIONS TO THE EDUCATION
AND TRAINING COMMITTEE

Upon motion duly made and seconded, the members of the Board of Directors of the OCGEMPC in meeting assembled do hereby:

RESOLVE AS IT IS HEREBY RESOLVED, that the Education and Training Committee of the OCGEMPC be, as it is hereby renamed as the Education, Training and Membership Committee;

RESOLVED FURTHER that effective August 1, 2011, the Education, Training and Membership Committee be, as it is hereby given the following functions, in addition to those provided in the OCGEMPC By-Laws:

- Screen applications for membership and recommends the approval or disapproval of the same to the OCGEMPC Board of Directors;

- Recommends policies to the Board regarding membership qualifications, expansion, and other matters regarding membership in the cooperative.

Done this 22nd day of July 2011 at Subic Bay Freeport Zone, Philippines.

2011 R - 032 - SETTING THE TERMS AND INCREASING THE MAXIMUM AMOUNT FOR GROCERY LOANS

Excerpts from the Minutes of the Regular Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 22 July 2011 at the Board Room of the Subic Bay Water Regulatory Board, Subic Bay Freeport Zone

Resolution No. 2011-032 - SETTING THE TERMS AND INCREASING THE MAXIMUM
AMOUNT FOR GROCERY LOANS

Upon motion duly made and seconded, the members of the Board of Directors of the OCGEMPC in meeting assembled do hereby:

RESOLVE AS IT IS HEREBY RESOLVED, that Resolution No. 2011-025 otherwise known as the OCGEMPC Consolidated Credit and Collection Policies be amended, as it is hereby amended to the effect that:

1. The maximum amount of grocery loans that may be availed by members is increased to Three Thousand Pesos (P3,000), in gift certificates;

2. The maximum terms of the grocery loans are: P500 – 1 month; P1,000 – 2 months; P2,000 – 4 months; and P3,000 – 6 months.

Done this 22nd day of July 2011 at Subic Bay Freeport Zone, Philippines.

2011 R - 031 - PROMULGATING SUPPLEMENTAL POLICIESREGARDING INTERESTS ON LOANS

Excerpts from the Minutes of the Regular Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 22 July 2011 at the Board Room of the Subic Bay Water Regulatory Board, Subic Bay Freeport Zone

Resolution No. 2011-031 - PROMULGATING SUPPLEMENTAL POLICIES REGARDING INTERESTS ON LOANS

Upon motion duly made and seconded, the Board of Directors of the OCGEMPC in meeting assembled hereby:

RESOLVE AS IT IS HEREBY RESOLVED, to promulgate as it hereby promulgates the following supplemental policies on loans, effective on 22 July 2011:

1. For all types of loans with payment terms of more than 12 months, only the interest for the first 12 months may be deducted from the amount to be released, if so requested by the borrower, provided that:

a. The remaining un-deducted interest shall be added to the first 12 months monthly amortization on the loan;

b. If the borrower has no capacity to pay the monthly amortization as computed in letter a above, collection of the un-deducted interest may be extended to the whole term of the loan;

c. If letter b above still results in no capacity to pay, the borrower may opt either to have the whole amount of interest deducted from the amount to be released, or reduced the loan amount in accordance with his/her capacity to pay.

Done this 22nd day of July 2011 at Subic Bay Freeport Zone, Philippines.

2011 R - 030 - AWARDING THE LEASE OF THE COOP CANTEEN TO MS. VERONICA CRISOLOGO: AND FOR OTHER PURPOSES

Excerpts from the Minutes of the Regular Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 22 July 2011 at the Board Room of the Subic Bay Water Regulatory Board, Subic Bay Freeport Zone

Resolution No. 2011-030 - AWARDING THE LEASE OF THE COOP CANTEEN TO MS. VERONICA CRISOLOGO: AND FOR OTHER PURPOSES

WHEREAS, after a careful review of the letters of intent received by the OCGEMPC and after the interview of the short0listed prospective lessees of the COOP Canteen, the Board has decided that the offer of Ms. Veronica Crisologo is the most advantageous to the OCGEMPC;

NOW THEREFORE, upon motion duly made and seconded, the Board of Directors of the OCGEMPC in session assembled do hereby:

RESOLVE AS IT IS HEREBY RESOLVED to award, as it is hereby awards the lease of the Coop Canteen to Ms. Veronica Crisologo;

RESOLVED FURTHER to authorize, as it is hereby authorizes the Board Chairperson to enter into a lease agreement with Ms. Crisologo based on the terms and conditions previously presented to the board.

Done this 22nd day of July 2011 at Subic Bay Freeport Zone, Philippines.

2011 R - 029 - APPOINTING JERICO BALLON AS OCGEMPC DIRECTOR

Excerpts from the Minutes of the Regular Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 30 June 2011 at the OCGEMPC Training Room

Resolution No. 2011-029

APPOINTING JERICO BALLON AS OCGEMPC DIRECTOR

WHEREAS, one seat in the Board of Directors of the OCGEMPC has been vacated as a result of the resignation of Ms. Aileen Sanchez;

WHEREAS, the OCGEMPC Board deems it to be in the best interest of the cooperative to fill-up the vacated position of Director;

WHEREAS, Jerico Ballon appears to be the most qualified and experienced among the present crop of OCGEMPC officers, having satisfactorily served as a member of the Credit and Collection Committee for five years, and as interim Director for eight months;

NOW THEREFORE, upon motion duly made and seconded, the Board of Director of the OCGEMPC in session assembled do hereby:

RESOLVE AS IT IS HEREBY RESOLVED to appoint, as it hereby appoints Mr. Jerico Ballon as OCGEMPC Director to serve for the remaining term of Ms. Aileen Sanchez effective immediately.

Done this 30th day of June 2011.

2011 R - 028 - PROVIDING PENALTIES FOR CANCELLATION OF CHECKS

Excerpts from the Minutes of the Regular Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 30 June 2011 at the OCGEMPC Training Room

Resolution No. 2011-028

PROVIDING PENALTIES FOR CANCELLATION OF CHECKS

WHEREAS, many members of the cooperative whimsically change their minds after their loan applications have been processed, and request the cancellation of the checks issued to them for their loans;

WHEREAS, there are costs incurred in the processing of applications for loans and the checks are bought from the banks;

WHEREAS, there is a need to penalize members who cancel their checks, not only to discourage such practice among the coop members, but more importantly, to recover costs and prevent loses by the cooperative;

NOW THEREFORE, upon motion duly made and seconded, OCGEMPC Board of Directors in meeting assembled, do hereby:

RESOLVE AS IT IS HEREBY RESOLVED, that effective on July 2011, members of the OCGEMPC who cancel their checks be penalized with a fine of ONE HUNDRED FIFTY PESOS (P150.00) for the first cancellation, and for succeeding cancellations, a fine of TWO HUNDRED FIFTY PESOS (P250.00) or the amount of the service fee on the cancelled loan, whichever is higher.

Done this 30th day of June 2011.

2011 R - 027 - PROMULGATING POLICIES ON TRAVEL AND TRANSPORTATION

Excerpts from the Minutes of the Regular Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 30 June 2011 at the OCGEMPC Training Room

Resolution No. 2011-027

PROMULGATING POLICIES ON TRAVEL AND TRANSPORTATION

WHEREAS, there is a need to promulgate policies on travel and transportation, in order to discourage unnecessary travel, and rationalize expenses for official travel and transportation;

NOW THEREFORE, upon motion duly made and seconded, the Board of Directors of the OCGEMPC in session assembled do hereby:

RESOLVE AS IT IS HEREBY RESOLVED, to promulgate, as it hereby promulgates the following:

Title: Travel and Transportation Policies, Rules and Regulation

I. Purposes of Travel

Official travel shall be allowed only for the following purposes:

1. To procure necessary items from Manila or anywhere outside of Olongapo when such item is not locally available, or when such is more cost efficient

2. To attend seminars, training activities, and other necessary educational purposes

3. To attend meetings, conferences, congresses, and other such functions at the behest of the Cooperatives Development Authority and/or in fulfilment of the cooperative’s organizational obligations

4. To confer with, or deliver and/or follow-up documents at the CDA regional or national office, and /or other agencies

5. To travel for other purposes that are necessary and beneficial to the cooperative

II. Approval of Official Travel

Travel becomes official only when duly approved as follows:

1. Travel by members of the management staff shall be approved by the Manager.

2. Travel by all officers shall be approved by the Chairperson.

3. All travels for educational and training purposes, by members, staff and officers shall be recommended for approval by the Education Committee and the Chairman is not authorized to approve such travel without the Committee’s positive recommendation.

4. Individual or group travels with aggregate costs of more than Twenty Thousand Pesos (P20, 000) shall be approved by the Board of Directors.

III. Official Travel and Transportation Costs

1. Per Diems

a. Expenses for official travel outside of Olongapo City, except SBFZ, Zambales, Bataan and Pampanga, shall be compensated with per diems at the rate of Five Hundred Pesos (P500.00) per day to cover meals, snacks and other minor expenses.

b. Per diems for official travel to SBFZ, Zambales, Bataan and Pampanga shall be at the rate of Three Hundred Pesos (P300.00) per day.

2. Lodging/Hotel Expenses

a. In addition to the travel per diem, an official traveller shall be granted a lodging allowance at the rate of Eight Hundred Pesos (P1, 000.00) per night when overnight stay is necessary to accomplish the official purpose of the travel.

b. The above provided policies on per diems and lodging allowance may not apply in the case of seminars, conferences and the like, where packages are offered that include meals and lodging. In such cases, the OCGEMPC may pay seminar/conference fees including meals and lodging in lieu of the usual per diems and lodging fees, for the duration of the activity.

3. Transportation Costs

a. In addition to the per diem and lodging allowance, the OCGEMPC shall bear the actual transportation costs incurred for official travel through land, sea and air

b. While the OCGEMPC does not have its own vehicle as yet, the preferred mode of land travel is through public transport, i.e. bus, jeepney, taxi

c. When absolutely necessary, and when public mass transportation is not practicable, a rented vehicle such as a car or van maybe used, provided that the rental and fuel cost is not higher than the current market cost for such.

IV. Documentary Requirements for Official Travel

1. All official travel shall be supported by a duly approved travel order/authorization document, and an itinerary of travel indicating the estimated cost of the travel.

2. The OCGEMPC shall not pay the cost of any travel made without prior authorization unless the failure to secure prior authorization is satisfactorily justified to the Board.

3. Travel to attend seminars, conferences and other out-of-town activities shall not be approved unless supported by an invitation from the organizers or sponsors of such activity.

V. Cash Advances, Liquidation and Other Post-Travel Requirements

1. Cash advances for official travel shall be allowed subject to the existing policies, rules and regulations regarding cash advances.

2. The approving authority of a travel, at his/her discretion, may require a traveller to submit a certificate of appearance from the office, agency or organization that will be the destination of the travel. The approving authority shall indicate this requirement on the approved travel authorization, or verbally inform the traveller before departure

3. Attendees to an out-of-town educational or training activity shall submit a written report on the activity attended to the Education Committee within seven (7) working days from completion of the said activity.

4. Attendees to an out-of-town activity required by the CDA, or to fulfil an organizational obligation of the OCGEMPC shall submit a written report on the activity attend to the Board within seven (7) working days from completion of the activity, or render a verbal report in the Board meeting immediately after completion of the activity attended.

VI. Effectivity

1. These policies, rules and regulations take effect on 01 July 2011 until revoked or amended by the OCGEMPCI Board of Directors.

Done this 30th day of June 2011 at Olongapo City, Philippines.

OCGEMPC OFFICERS 2011 - 2012

BOARD OF DIRECTORS

Jaime Mendoza - Chairperson
Elizabeth Daduya - Vice Chairperson
Genia Eclarino - Member
Ira Daylo - Member
Joseph Antonio - Member
Helson Cañero - Member
Jerico Ballon - Member
Emely Levita - Board Secretary

AUDIT & INVENTORY COMMITTEE

Monette Aranilla
Bella Avellanes

ELECTION COMMITTEE

Shidar Alop
Corazon Fonseca
Virginia Navarro

CREDIT & COLLECTION COMMITTEE

Luz Casipong
Joy Cahilig
Nova Codoy

EDUCATION & TRAINING COMMITTEE

Elizabeth Daduya
Noreen Maagma
Sol Solomon

ETHICS COMMITTEE

Edwin J. Piano
Gerard Madarang
Eric Sanchez

MEDIATION COMMITTEE

Glenly Monje
Naila Dela Cruz
Allen Tuyogon

MANAGEMENT STAFF

Elisheba M. Mendoza - Manager
Julie Reyes - Treasurer
Dianne Javier - Cashier / Accounting Clerk
Rose Jadulco - Clerk
Oliver Alba - Loan Officer

2011 R - 025 -PROMULGATING THE OCGEMPC CONSOLIDATED CREDIT AND COLLECTION POLICIES, RULES, AND REGULATIONS

Excerpts from the Minutes of the Regular Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 26 May 2011 at the OCGEMOC Training Room, City Hall, Olongapo City

Resolution No. 2011-025

PROMULGATING THE OCGEMPC CONSOLIDATED CREDIT AND COLLECTION POLICIES, RULES, AND REGULATIONS

WHEREAS, uncollected overdue loan payments, many of which are impossible to collect, amount to almost Five Million Pesos as of December 31, 2010;

WHEREAS, the huge amount of uncollectible, overdue loans resulted from past imprudent and reckless lending and collection practices, misinterpretation and outright violations of existing lending and collection policies, and inadequacy of existing credit and collection policies, rules and regulations, among others;

WHEREAS, there is a need to promulgate clear and detailed policies, rules and regulations that would minimize risks and give primacy to the security and preservation of the cooperative’s capital in order to arrest the increase in uncollected loan payments and save the OCGEMPC from bankruptcy;

NOW THEREFORE, upon motion duly made and seconded the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative in meeting assembled, do hereby:

RESOLVE, AS IT IS HEREBY RESOLVED, to, as it hereby promulgates the following:

Title: OCGEMPC CONSOLIDATED CREDIT AND COLLECTION

POLICIES, RULES, AND REGULATIONS

A. GENERAL PROVISIONS

I. STATEMENT OF THE OCGEMPC VISION

The OCGEMPC envisions itself to be the best government employees cooperative in the Philippines, in accordance with the standards set by the Cooperatives Development Authority.

II. STATEMENT OF THE OCGEMPC MISSION

To encourage thrift and continuous capital build-up among its members, and mobilize the capital to enhance their economic, social and spiritual well-being by providing a variety of quality goods and services that are responsive to their needs.

III. GENERAL POLICIES

1. The OCGEMPC shall provide loans to its members for productive and providential purposes.

2. As a matter of strict policy, security and preservation of capital shall take precedence over any other concern of the OCGEMPC, especially in the granting of loans. The cooperative’s capital must never be placed at an undue risk. Loans must never be granted where the probability of collection is uncertain.

3. Policies, rules, regulations and procedures in the granting of loans must encourage members to practice thrift and to increase their shares in the capital of the cooperative.

4. Policies, rules, regulations and procedures in the granting of loans must generally support a system whereby a good credit standing is rewarded, and a bad credit standing is penalized.

5. Individual Directors and all other officers of the OCGEMPC, the Manager and all the management staff are prohibited from altering, or otherwise misinterpreting this policies, rules, regulations and guidelines. Any question of interpretation of any herein provision must be addressed to and resolved by the OCGEMPC Board of Directors.

B. CREDIT POLICIES

I. QUALIFICATIONS OF A LOAN APPLICANT:

A MEMBER WHO FILES AN APPLICATION FOR A LOAN:

1. Must have been a member for at least two months

2. Must have at least 2 months remaining in the term of his/her current employment status to avail of Secured, Rice, and Grocery Loans only, provided that there no other current loans;

3. Must have paid at least 15 shares of his subscription which is equivalent to P1,500;

4. Must have the capacity to pay ; capacity to pay is the amount in excess of P1,500 of the net take home pay per payday, or in excess of P3,000 of the net take home pay per month;

5. Must be current in paying all financial obligations; does not have past due, nor delinquent accounts and continuously contributes to the Shares Capital Build Up and Savings Deposit monthly;

6. Must have a Co-Maker, except when applying for Rice Loan and Grocery Loan, provided that a Secured Loan may not need a co-maker if there are no other current loans.

7. Can avail only of regular, rice and grocery loans if his/her share capital is less than Five Thousand Pesos (P5,000);

8. Can avail of all other loans except Appliance Loan if her/his share capital is Five Thousand Pesos (P5,000) or more;

9. Can avail of an Appliance Loan, if his/her capital share is Five Thousand Pesos (P5,000) or more and has been a member for at least six (6) months.

10. Must attend the required ownership seminar on the date that the loan is released, otherwise all OCGEMPC transactions with him/her shall be suspended.

II. QUALIFICATIONS OF A CO-MAKER

A MEMBER CAN BE A CO-MAKER:

1. If he has been a member for at least two months;

2. If he has paid at least 15 shares subscription equivalent to One Thousand Pesos ( P1,500)

3. If he has the capacity to pay for the maker’s loan;

4. If his current term of employment does not expire earlier than the maturity date of the loan.

5. If he is current in paying all financial obligations; does not have past due, nor delinquent accounts and continuously contributes to the Share Capital Build Up and Savings Deposit monthly;

6. To four (4) members at a time if she/he has capital shares of not less than ten thousand pesos (P10,000), is a permanent employee, and has the capacity to pay the total loans of the four makers;

7. If he/she is willing and able to assume the unpaid balance of the borrower-member in case of default by the maker of the loan;

8. Four (4) times at a time, but only twice for the same borrower-member until loan availed is fully paid, and provided that he/she has the capacity to pay for the loans of all the makers,

9. If he agrees: that upon his separation from employment, she/he shall not be given clearance until another co-maker is found to replace him as co-maker of an outstanding loan or, that his shares capital, savings and other interests in the cooperative be withheld as collateral for loans that he co-makes.

III. EFFECTS OF STATUS OF EMPLOYMENT ON LOAN APPLICATION

1. Contractual or casual employees with less than two (2) months remaining in their current employment status are not qualified to apply for any loan except Secured Loan, Rice Loan and Grocery Loan, provided that there are no other current loans.

2. Contractual and casual employees with more than three (3) months remaining in their current employment status may avail of any loan provided that the term of such loan shall not exceed the remaining months of their current employment status, except for Secured Loan which may be for a maximum of 12 months.

3. Contractual and casual employees with more than 3 months left in their current employment status may be granted loan terms exceeding the remaining months of their current employment status, but not to exceed 12 months, provided that:

- the co-maker of the loan is a permanent employee, or

- the immediate supervisor of the borrower issues a certification to the effect that the appointment of the said borrower shall be renewed, and agrees to be the other co-maker of the loan

4. Permanent employees may be granted loan terms at a maximum of 24 months if the loan amount is Fifty Thousand Pesos (P50,000) or more, subject to all the other applicable loan policies.

IV. BASIC DOCUMENTARY REQUIREMENTS WHEN APPLYING FOR LOAN

Except for Rice Loan and Grocery Loan, the following documents are required when applying for any loan:

1. Duly filled-up application for loan

2. Copy of latest index of payments of borrower and co-maker/s

3. For casual and contractual employees, copy of current appointment or employment contract

V. PROCESSING AND APPROVING AUTHORITY FOR LOANS

1. Loans applications that do not exceed P100,000 shall be approved by the Credit and Collection Committee, after being checked by the Loans Officer and reviewed by the Manager.

2. Loans amounting to more than P100,000 up to P150,000 shall be approved by the Chairperson after being checked by the Loans Officer, reviewed by the Manager and recommended by the Credit Committee, in that order.

3. Loans amounting to more than P150,000, and loans of all officers and staff regardless of amount, shall be approved by the Board after being checked the Loans Officer, reviewed by the Manager, and recommended by the Credit Committee, in that order.

VI. RENEWAL OF LOANS

1. No loan will be renewed until fully paid except for Regular Loan.

2. A regular Loan may be renewed provided that seventy percent (70%) of the loan has already been paid, and provided further that if there was a skipped monthly amortization in the payment of the 70% the corresponding penalties for the skipped payment shall be applied.

C. COLLECTION AND PAYMENT POLICIES

I. General Policies on Collection and Payment

1. The collection of loan amortization, capital build up, savings deposits and all other collectibles shall be done through automatic salary deduction.

2. The automatic salary deduction shall be made in two monthly installments, every 15th and 30th of the month for casual and contractual employees, while the 7th and 22nd of the month for permanent employees or, in one- time monthly payments.

3. For loans released on any day of the month, the collection of the first installment shall be on the first payday of the immediate following month.

4. Over - the- counter payments shall be accepted for additional payments, but not regularly nor habitually in lieu of the regular deductions such as payments of loan amortization, capital build up and savings deposits.

5. Over-the-counter payments of overdue accounts shall also be accepted.

6. As a general rule, post dated checks shall not be accepted as payment or security for loans, except as provided under these policies and guidelines.

7. Failure to fully pay any loan on its maturity date is considered an offense against the OCGEMPC. Overdue accounts must be collected as soon as possible, by all possible means, and offenders penalized accordingly.

II. Fines and Penalties

1. A one-time fine of 4% is imposed on each unpaid monthly loan amortization. Over-the-counter payment of the installment within 16 days after it falls due shall be considered as on-time payment and not subject to fine.

2. For each skipped payment on the monthly amortization of a loan, there shall be a corresponding one (1) month delay in the processing and release of any succeeding loan. Two skipped payments in the same month shall mean a delay of two months in the processing of the succeeding loan.

3. Loans that are not fully paid on their contracted maturity date shall be charged an additional, uncompounded interest, at the rate of three percent (3%) of the total unpaid amount, per month.

4. Loans acquired through acts of dishonesty and deception shall become immediately due and demandable upon discovery. Members committing such acts shall be meted penalties ranging from suspension of credit privileges to termination of membership in the cooperative and legal action, depending on the gravity of the offense, as determined by the Board.

III. Collection of Overdue Accounts

1. All Payments on a loan become immediately due and demandable on its contracted maturity date

a. Immediately after a loan becomes overdue, the maker shall be billed the overdue amount to the full extent of his/her capacity to pay;

b. If the capacity to pay is insufficient for a one-time final payment of the total overdue amount, the remaining balance shall be offset with the borrower’s savings.

c. If the savings are still insufficient, the total remaining overdue amount shall be offset with the borrower’s shares capital within sixty (60) calendar days from the maturity date of the loan.

d. If, after offsetting, the shares capital of the borrower is totally used or reduced to less than Five Hundred Pesos (P500), his membership in the cooperative is deemed suspended, and he shall have a grace period 30 days from the reduction of his shares capital to restore the same to at least P500. Failure of the member to restore his share capital to at least P500 within the 30-day grace period shall be construed as voluntary termination of membership by the member and a waiver of his rights under Article 30 of R.A. 9520. Such member shall be disqualified from re-admission to the cooperative.

e. If the loan is still not fully paid after offsetting with both savings and capital shares of the borrower, the remaining overdue amount including interests shall be billed to the co-maker to the full extent of his capacity to pay until the loan is fully paid.

f. Within 60 days from the contracted maturity date of the loan, the loan maker and/or the co-maker may make over-the-counter partial or full payments for the overdue amount.

g. During the annual distribution of dividends and patronage refunds (ICPR), all past due and delinquent accounts shall be offset with the ICPR of offending members.

h. In case a borrower with overdue accounts is due to leave the government service for any reason, the OCGEMPC shall charge full payment of any outstanding loan from any and all money claims of the borrower from the government, including salaries without regard to capacity to pay, monetization of leave credits, terminal leave, retirement benefits, etc. If such collectibles from the government are insufficient to pay for the whole amount, the borrower may issue a post dated check or checks for the remainder of the past due amount, subject to the approval of the Board.

i. If a member is separated from employment in government without prior notice to the OCGEMPC, his/her overdue account shall be automatically deducted from his/her savings and capital shares, in that order, within one month of the separation from employment. Immediately thereafter, the remaining amount, including interest shall be offset with the co-maker’s savings deposits and billed to the co-maker to the extent of the co-maker’s capacity to pay until the loan is fully paid.

VI. LOANS AVAILABLE TO MEMBERS

The following loans with their corresponding interest rate per month, shall be available to qualified members, subject to the herein policies, rules, regulations and guidelines:

1. REGULAR LOAN – 1%

2. SECURED LOAN – 1%

3. APPLIANCE LOAN – 1%

4. MEDICAL LOAN – 0.5%

5. EDUCATIONAL LOAN – 0.5%

6. HOUSE RENTAL LOAN – 0.5%

7. UTILITY LOAN – 0.5%

8. GROCERY LOAN – 0.5%

9. LIVELIHOOD / BUSINESS LOAN – 1%

10. BURIAL LOAN – 0.5%

11. RICE LOAN – Mark-up ranging from P50 to P100 per sack, depending on market trends, and other relevant factors

D. SPECIFIC POLICIES FOR EACH TYPE OF LOAN:

I. REGULAR LOAN

1. Initial loan shall not be more than P5, 000 for new members; subject to other credit policies.

2. If shares amount to P3, 000 or more, succeeding loans shall be maximum of P10, 000; subject to other credit policies.

3. For casual and contractual employees, maximum of loan amount is P25, 000

4. On their first renewal, permanent employees with capital shares of P10, 000 or more may avail of four times their share capital, subject, to the herein policies.

5. After the first Regular Loan, permanent employees with P20,000 shares capital may avail of Regular Loan up to the limit of their capacity to pay, subject to the herein policies.

6. Terms of Payment:

a. Initial loan, maximum 12 months

c. Succeeding loan, maximum 12 months; except for permanent employees, the maximum term is 18 or 24 months

d. Interest is 1% per month;

7. Other conditions:

C. Subject to 2% Service Fee, and 0.5% Loan Protection Fund

D. Subject to 3% capital build-up (added to the borrower’s shares capital)

8. Requires a co-maker

9. The loan may be renewed after payment of seventy percent (70%) of the outstanding loan, and subject to the other applicable general policies. The unpaid balance of the previous loan shall be deducted from the succeeding loan.

II. RICE LOAN

1. Each member can avail maximum of 1 sack of rice per month, subject to the applicable

general policies

2. Price of rice depends on current market trend, maximum term of 2 months

3. Does not require a co-maker

III. SECURED LOAN

1. Can be availed only if the borrower’s share capital is not less than P5,000

2. Maximum amount of loan is equal to the total capital shares of the member

3. Payable in maximum of 12 months, except for permanent employees

4. Subject to 1% interest per month; one-time 2% service fee, and 0.5% loan protection fund.

5. Does not require a co-maker if applicant does not have any other current loan.

IV. MEDICAL LOAN

Basic Policies:

1. Available for the medical needs of a member or his /her immediate family only.

2. Maximum amount depends on the needs and the capacity to pay of the member.

3. Payable in 12 months (maximum), except for permanent employees

4. Interest is 0.5% per month; service fee is 2% and; loan protection fund is 0.5%

5. Requires a co-maker; for contractual employees, 2 co-makers if the amount is over P40,000

6. Requires billing or statement of account from the medical institution, clinic, laboratory, or attending medical practitioner.

7. Check is payable to the medical institution or medical practitioner.

Supplemental Policies:

1. Check may be payable to the borrower if the loan amount includes payment for medicines, and other related medical expenses not payable to the hospital or clinic, provided however, that the borrower is required as follows:

a. Upon filing of application, attach proof of hospitalization, or medical certificate, doctor’s referral for laboratory tests ,or doctor’s prescription for medicines, or any documentary evidence proving the need for the loan;

b. Within 10 calendar days from release of the loan, to submit receipts or other proofs of payment of the medical expenses paid with the loan.

2. If the borrower fails to submit the above-mentioned proofs of payment or receipts, the loan shall be considered a deceptively and dishonestly acquired loan, and the borrower shall be treated in accordance with the herein Item No. 4 under the heading C.II. “Fines and Penalties”.

V. EDUCATIONAL LOAN

Basic Policies:

1. Available for the education of a member or his immediate family.

2. Maximum amount depends on the school assessment & the capacity to pay of the member

3. Payable in 12 months maximum, except for permanent employees

4. Interest is 0.5% per month; service fee is 2%; loan protection fund is 0.5%

5. Requires a co-maker

6. For approved loan, check is payable to the school

Supplemental Policies:

1. Check may be payable to the borrower if the loan amount includes payments for books, school uniform, and other schooling needs not payable to the educational institution, provided however, that the borrower is required as follows:

a. Upon filing of application, attach proof of schooling such as school assessment, or duly filled-up enrollment form, or prior semester enrollment, school I.D., etc.

b. Within 10 calendar days from release of loan, to submit receipts or proof of payment of the educational expenses paid with the loan.

2. If the borrower fails to submit the above-mentioned proofs of payment or receipts, the loan shall be considered a deceptively and dishonestly acquired loan, and the borrower shall be treated in accordance with the herein Item No. 4 under the heading C.II. “Fines and Penalties”.

VI. HOUSE RENTAL LOAN

1. Available only to members who are paying rent for their place of residence.

2. Amount depends on the needs & the capacity to pay of the member

3. Subject to credit investigation.

3. Maximum term is one (1) year regardless of employment status

3. Interest is 0.5% per month; service fee 2%, and LPF 0.5%

4. Requires a co-maker

5. Requires proof of delinquency in paying the house rental from the lessor

6. For approved loan, check is payable to the lessor

VII. UTILITY LOAN

1. Member needs at least two unpaid billings of Electric, Water and/or Telephone

2. Amount depends on the utility billing and capacity of the member to pay

3. Payable in 12 months maximum, regardless of employment status.

4. Interest is 0.5% per month; service fee 2%, and LPF 0.5%

5. Requires a co-maker

6. For approved loan, the check is payable to the Electric, Water & Telephone Companies

VIII. GROCERY LOAN

1. Maximum loan amount is Php1,000.00

2. Payable in one (1) month (maximum) at 0.5% interest

3. Does not require a co-maker

4. Is in the form of Gift Certificate/Check, in P500 and P1,000 denominations

5. Issuance is every 15th & 30th of the month

6. Accredited establishments are Vercons Supermart and Royal Duty Free

IX. BURIAL LOAN

1. Available only in case of death in the borrower’s immediate family. Immediate family of single members includes only parents and siblings; for married members, legal spouse and children.

2. Maximum loan amount is Thirty Thousand Pesos (P30,000).

3. Payable in 12 months maximum, regardless of employment status.

4. Interest is 0.5% per month; service fee 2%, and LPF 0.5%

5. Requires a co-maker

6. Upon filing of application, attach proof of death, such as death certificate

X. LIVELIHOOD /BUSINESS LOAN

1. Requires a simple Livelihood or Business Feasibility Study.

2. Amount of loan depends on the feasibility study and capacity to pay of the borrower

3. Payable in 12 months, maximum, regardless of employment status

4. Interest is 1% per month; service fee 2%, and LPF 0.5%

5. Requires co-maker/s depending on the amount of loan

6. May require investigation and/ or Board approval

XI. APPLIANCE LOAN

1. Borrower must have been a member for at least 6 months

2. Must have capital shares of not less that P5,000

3. Requires a duly signed appliance price quotation from the appliance store

4. Amount depends on price of appliance and borrower’s capacity to pay

5. Interest is 1% per month; service fee 2%, and LPF 0.5%

6. Requires a co-maker or co-makers depending on amount of loan

7. Loan check is payable to the accredited appliance store.

8. Borrower may get appliance from a non-accredited store provided that it accepts OCGEMPC check

E. REPEALING CLAUSE

1. The following loan windows are hereby closed and will no longer be available to members:

a. Credit Card Repayment Loan

b. Credit Repayment Loan

c. Bonus Loan

2. All previously existing credit and collection policies, rules, regulations and guidelines that are inconsistent with this resolution are hereby repealed..

Done this 26th day of May 2011 at Olongapo City, Philippines.

2011 R - 021 - Recognizing and Reaffirming for the Record The Officers of OCGEMPC for Year 2011

Excerpts from the Minutes of the Meeting of the Board of Directors of the Olongapo City, Government Employees Multi-Purpose Cooperative (OCGEMPCI) Held on 30 April 2011 at the OCGEMPC Training Room, City Hall, Olongapo City

Resolution No. 021

Recognizing and Reaffirming for the Record The Officers of OCGEMPC for Year 2011

WHEREAS, the OCGEMPC Board of Directors, after having been duly elected by the General Assembly, subsequently held a meeting and elected its Chairperson and Vice Chairperson, and appointed the other officers as provided for in the By-Laws of the Cooperative;

WHEREAS, it is deemed necessary to affirm and recognize for the record, the new set of officers of the Cooperative, and disseminate the information to the members of the Cooperative and to all concerned individuals and entities;

NOW THEREFORE, upon unanimous accord of all the members present, the OCGEMPC Board of Directors in meeting assembled;

RESOLVE AS IT IS HEREBY RESOLVED, that the following, by virtue of their election by the General Assembly and their election or appointment in the subsequent Board of Directors meeting, are, as they are hereby affirmed and recognized as the new set of officers of the Olongapo City Government Employees Multi-Purpose Cooperative:

Board of Directors:

Jaime L. Mendoza – Chairperson

Elizabeth J. Daduya – Vice Chairperson

Ira B. Daylo - Director

Joseph G. Antonio - Director

Genia R. Eclarino – Director

Helson C. Cañero – Director

Other Officers:

Leticia M. Doropan – Treasurer

Emely E. Levita – Secretary

Elisheba M. Mendoza – Manager-Accountant

Audit and Inventory Committee

Monette Aranilla

Julie U. Reyes

Abella Avellanes

Election Committee:

Shidar Alop

Virginia Navarro

Corazon Fonseca

Credit and Collection Committee

Luz Casipong

Joy Cahilig

Nova Codoy

Mediation Committee:

Glen Monje

Eric Sanchez

Nayla dela Cruz

Educ., Trng., and Membership Com.:

Elizabeth Daduya

Noreen Maagma

Sol Solomon

Ethics Committee:

Edwin J. Piano

Gerard Madarang

Allen Tuyugan

Done this 16th day of May 2011, at Olongapo City, Philippines.

2011 R - 024 - APPOINTING MS. JULIE U. REYES AS OCGEMPC TREASURER AND AUTHORIZING HER AS A SIGNATORY FOR TRANSACTIONS WITH BANKS

Excerpts from the Minutes of the Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 03 May 2011 at the OCGEMPC Training Room, City Hall, Olongapo City.

Resolution No. 2011-024

APPOINTING MS. JULIE U. REYES AS OCGEMPC TREASURER AND AUTHORIZING HER AS A SIGNATORY FOR TRANSACTIONS WITH BANKS

WHEREAS, the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC), has accepted the resignation of Ms. Leticia Doropan as Treasurer of the OCGEMPC effective on 31 May 2011;

WHEREAS, in order to preclude any disruption in OCGEMPC operations, and to allow for a smooth transition and transfer of accountabilities, a new Treasurer must be immediately appointed and given the authority to effectively perform the duties of the position;

NOW THEREFORE, upon motion duly made and seconded, the Board of Directors of the Olongapo City Government Employees Multi- Purpose Cooperative in session assembled:

RESOLVE AS IT IS HEREBY RESOLVED, to, as it hereby appoints Ms. Julie U. Reyes to the position of OCGEMPC Treasurer effective on 01 June 2011; and hereby designates and authorizes her as the official signatory, together with current Board Chairman Jaime L. Mendoza, for all transactions of the OCGEMPC with the Land Bank, Planters Bank, Union Bank and Philippine National Bank effective on 01 June 2011 until the aforementioned banks are notified otherwise by the OCGEMPC;

RESOLVED FURTHER, that the previous designation and authorization of Ms. Leticia Doropan be, as it is hereby revoked; and that a notarized copy of this Resolution be furnished to each of the aforementioned banks for their information, record and reference.

Done this 3rd day of May 2011 at Olongapo City, Philippines.

2011 R - 023 - DESIGNATING AND AUTHORIZING MS. JULIE U. REYES, AS SIGNATORY FOR ALL TRANSACTIONS WITH DEPOSITORY BANKS OF THE OCGEMPC

Excerpts from the Minutes of the Meeting of the Board of Directors of the Olongapo City, Government Employees Multi-Purpose Cooperative (OCGEMPCI) Held on 16 May 2011 at the OCGEMPC Training Room, City Hall, Olongapo City

Resolution No. 2011-023

DESIGNATING AND AUTHORIZING MS. JULIE U. REYES, AS SIGNATORY FOR ALL TRANSACTIONS WITH DEPOSITORY BANKS OF THE OCGEMPC

WHEREAS, the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC), pursuant to its By-Laws, held a reorganization meeting on after a formal investigation wherein Ms. Aileen Sanchez was given the opportunity to refute the allegations against her, the OCGEMPC Board found Ms. Sanchez to have gravely abused her authority as an officer of the OCGEMPC by:

-approving loans for herself, her siblings, and other members of the cooperative which were beyond their capacity to pay, and in gross violation of OCGEMPC policies, rules and regulations;

-making unauthorized cash advances and failing to liquidate the same;

-allowing the unauthorized distribution of excessive dividends to members of the cooperative without the knowledge of the Board, and in violation of policies and long-established sound practices of the cooperative;

WHEREAS, in view of the offenses committed by Ms. Sanchez, and based on her own statements during investigation, the Board has deemed Ms. Sanchez disqualified from being an officer of the OCGEMPC;

WHEREAS, based on her acts that were inimical to, and adversely affected, the interest of the OCGEMPC, Ms. Sanchez might be liable for criminal offenses;

NOW THEREFORE, pursuant to the provisions of Republic Act No. 9520 and the OCGEMPC By-Laws, and upon motion of Director Elizabeth J. Daduya and second motion of Director Genia R. Eclarino, the OCGEMPC Board of Directors in meeting assembled:

RESOLVE, AS IT IS HEREBY RESOLVED, to recommend the expulsion of Aileen C. Sanchez from the OCGEMPC Board of Directors and to convene a general assembly meeting to have this Board recommendation approved by the cooperative members as soon as possible;

RESOLVED FURTHER, to, as it hereby declares Aileen C. Sanchez perpetually disqualified from being an officer of the OCGEMPC;

RESOLVED FURTHERMORE, to seek legal counsel for the purpose of determining the criminal liability of Ms. Sanchez for her offenses against the OCGEMPC, and to pursue legal action against her if deemed feasible;

RESOLVED FINALLY, that a copy of the ‘show cause’ letter of the OCGEMPC Board to Ms. Sanchez, and a copy of the ‘Minutes of the OCGEMPC Board Meeting Held on 26 April 2011’ containing the deliberations on the case of Ms. Sanchez be attached hereto and made an integral part of the this resolution.

Done this 26th day of April 2011, at Olongapo City, Philippines.

2011 R - 017 - APPROVING THE FISCAL YEAR 2010 FINANCIAL STATEMENTS AND ORDERING THE COMPUTATION AND DISTRIBUTION OF DIVIDENDS BASED THEREON

Excerpts from the Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 19 April 2011 at the OCGEMPC Training Room, City Hall, Olongapo City

Resolution No. 2011 - 017

APPROVING THE FISCAL YEAR 2010 FINANCIAL STATEMENTS AND ORDERING THE COMPUTATION AND DISTRIBUTION OF DIVIDENDS BASED THEREON

WHEREAS, the OCGEMPC External Auditor has presented to the Board her audit report of the OCGEMPC financial statements for fiscal year 2010 and the Board has reviewed the same audited financial statements;

NOW THEREFORE, upon motion of Director Julie U. Reyes and seconded by Director Genia R. Eclarino , the OCGEMPC Board of Directors in session assembled:

RESOLVE AS IT IS HEREBY RESOLVED, to, as it hereby approves the audited financial statements for fiscal year 2010;

RESOLVED FURTHER, to, as it hereby instructs management to compute for dividends based on the said audited financial statements and present said computations for Board review and approval;

RESOLVED FINALLY, that dividends earned in year 2010 be distributed starting in the first week of May 2011.

Done this 19th day of April 2011.

2011 R - 016 - APPROVING THE OCGEMPCI REVENUE AND EXPENDITURE BUDGETS FOR FISCAL YEAR 2011

Excerpts from the Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 18 April 2011 at the OCGEMPC Training Room, City Hall, Olongapo City

Resolution No. 2011 - 016

APPROVING THE OCGEMPCI REVENUE AND EXPENDITURE BUDGETS FOR FISCAL YEAR 2011

WHEREAS, the OCGEMPC Board has reviewed the Fiscal Year 2011 Revenue and Expenditure Budgets proposed by management;

NOW THEREFORE, upon motion of Director Julie U. Reyes and second motion of Director Jerico C. Ballon, the Board of Directors of the OCGEMPC, in session assembled:

RESOLVE, AS IT IS HEREBY RESOLVED, to approve, as it hereby approves the OCGEMPC Revenue and Expenditure Budgets for fiscal year 2011;

RESOLVED FURTHER, that signed copies of the herein approved budgets be attached hereto and be made part this resolution;

RESOLVED FURTHERMORE, that this resolution and its attached copy of the 2011 Budgetsbe presented for approval in the General Assembly to be held on 20 April 2011.

Done this 18th day of April 2011.

2011 R - 013 - SETTING THE PRICE OF, AND ORDERING THE SALE OF INOS COOKWARE SETS

Excerpts from the Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 18 April 2011 at the OCGEMPC Training Room, City Hall, Olongapo City

Resolution No. 2011-013

SETTING THE PRICE OF, AND ORDERING THE SALE OF INOS COOKWARE SETS

WHEREAS, the OCGEMPC has failed to profitably dispose several pieces of Inos cookware sets which have been in its merchandise inventory for more than three years, and many of these cookware sets have just been given away for free to the members during the past general assemblies of the cooperative;

WHEREAS, the said cookware sets have continuously depreciated in value due to the emergence in the market of better and cheaper cookware of the same kind;

WHEREAS, the Board deems it more beneficial to the cooperative and its members, to convert these cookware sets into cash by making them available through cash sales or loans at affordable prices;

NOW THEREFORE, upon of motion of Director Beth Daduya, seconded by Director Genia Eclarino, the OCGEMPC Board of Directors in session assembled:

RESOLVE, AS IT IS HEREBY RESOLVED, to offer the Inos Cookware for cash sale or through appliance loans, at a minimum price of Seven Thousand Pesos (P7, 000.00) per set, effective immediately.

Done this 18th day of April 2011.

2011 R - 012 - UPDATING AND READJUSTING THE ACCOUNTS OF ATTY. RAYMOND DILAG

Excerpts from the Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 18 April 2011 at the OCGEMPC Training Room, City Hall, Olongapo City

Resolution No. 2011- 012

UPDATING AND READJUSTING THE ACCOUNTS OF ATTY. RAYMOND DILAG

WHEREAS, Republic Act 9520, otherwise known as “The Cooperatives Code of 2009”, reduced the allowable shares capital of each cooperative member from 20 percent to 10 percent of the cooperative’s paid up shares capital;

WHEREAS, as a result of the enactment of RA 9520, the capital shares of Atty. Raymond Dilag as of 31 December 2009 have exceeded the allowable maximum 10 percent of the OCGEMPC’s paid up shares;

NOW, THEREFORE, upon motion of Director Julie U. Reyes seconded by Genia R. Eclarino, the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative in session assembled:

RESOLVE, AS IT IS HEREBY RESOLVED, to, as it hereby instructs the OCGEMPC management staff, particularly the Manager and Treasurer, as follows:

1. Reduce the capital shares of Atty. Raymond Dilag to conform with the maximum allowed under RA 9520 and the OCGEMPC By-Laws;

2. From the amount in excess of the shares capital, offset the outstanding balance on the secured loan of Atty. Dilag, applying thereon the OCGEMPC policy of 2 percent interest on every skipped monthly installment and 3 percent interest on the remaining balance after the maturity date of the loan;

3. The final balance shall be treated as long term time deposits;

4. All these adjustments shall be effective as of 01 January 2010.

Done this 18th day of April 2011.

2011 R - 010 - ADOPTING THE TERMS OF REFERENCE FOR THE CONDUCT OF THE INVESTIGATION OF SUSPECTED OFFENSES COMMITTED BY CERTAIN OFFICERS OF THE OCGEMPC

Excerpts from the Minutes of the Meeting of the OCGEMPC Board of Directors Held on 31 March 2011 at the OCGEMPC Training Room, City Hall, Olongapo City

Resolution No. 2011-010

ADOPTING THE TERMS OF REFERENCE FOR THE CONDUCT OF THE INVESTIGATION OF SUSPECTED OFFENSES COMMITTED BY CERTAIN OFFICERS OF THE OCGEMPC

WHEREAS, the OCGEMPC Board of Directors has decided to conduct an investigation of suspected offenses committed by certain officers of the cooperative;

WHEREAS, there is a need for the Board to adopt the terms of reference for the said investigation in order to set its limits, and ensure that it be objective, systematic and beneficial to the interest of the OCGEMPC;

NOW THEREFORE, upon motion duly made and seconded, the Board of Directors of the OCGEMPC in session assembled:

RESOLVE, AS IT IS HEREBY RESOLVED, to, as it hereby adopts the following Terms of Reference which shall take effect immediately until the investigation is officially terminated:

TERMS OF REFERENCE

FOR THE OCGEMPC BOARD OF DIRECTORS’ INVESTIGATION OF SUSPECTED OFFENSES COMMITTED BY REYNALDO ERINGCO AND AILEEN C. SANCHEZ AGAINST THE OCGEMPC

A. BACKGROUND

This investigation was triggered by the discovery, sometime in March 2011, of OCGEMPC documents showing unusually large amounts of loans amassed by, and way beyond the capacity to pay of, certain members of the cooperative. A summary review of these documents by the Board showed that as of January 2011 Reynaldo Eringco, part time staff of the OCGEMPC has a total unpaid loans balance of P990,482; Aileen C. Sanchez, Director and former Chairperson of the OCGEMPC has a total unpaid loans balance of P502,675; the latter’s sister, Anna Lucille Cuevas has a total unpaid loans balance of P136,742; and their brother Alfred Cuevas a total unpaid loans balance of P85,335. It appeared from the records that the said loans were acquired in violation of OCGEMPC policies, rules, and regulations.

In the Board meeting held on 11 March 2011 Ms. Sanchez was confronted with the above-mentioned records of her loans and those of her siblings and Reynaldo Eringco. Ms. Sanchez denied responsibility for her own loans and told the Board that she did not know she owed the Cooperative that much already. She told the Board that in fact, this was the first time she learned of the total amount of her loans. She said, “Rey Eringco buried me in loans without my knowledge.” She admitted having had some financial problems in the past and that she indeed needed loans, but that Rey Eringco had always assured her that there were still loan windows available to her.

Reynaldo Eringco, on the other hand, when confronted with the records and told of Ms. Sanchez’ statements against him, just kept silent and did not respond nor react.

Considering the gravity of the probable offenses committed, and the sensitive positions occupied by the two principals involved, the Board decided to pursue an investigation of the amassed unusual loans. The Board also decided to take this opportunity to investigate other probable major offenses committed by Ms. Aileen Sanchez, about which many members are still asking for information, but which were never investigated nor put to proper closure during the term of Ms. Sanchez as Chairperson of the OCGEMPC Board.

In the meantime, Reynaldo Eringco is placed on preventive suspension, while Ms. Sanchez voluntarily went on a leave of absence from her duties as officer of OCGEMPCI pending the investigation.

B. NATURE AND PURPOSE OF THE INVESTIGATION

This investigation is essentially a fact-finding activity or series of activities to establish the truth regarding the probable irregular transactions and offenses committed by Mr. Reynaldo Eringco and Ms. Aileen Sanchez against the OCGEMPC.

More specifically, this investigation shall be based on already existing prima facie evidence and shall aim to:

1. Establish more objectively whether offenses were actually committed

2. Determine the nature of the transactions, how offenses were committed, and establish who were responsible or liable for them

3. Draw lessons from the facts gathered in the investigation that could guide the Board in promulgating new, or revising existing policies, rules and regulations to further protect the general interest of members and improve the operations of the cooperative.

C. SCOPE OF THE INVESTIGATION

1. Subjects of the Investigation – Without prejudice to the future investigation of other possible offenses of other officers and members, this investigation shall focus only on the following probable offenses based on OCGEMPC records:

a. Unusual Loan Accounts of Reynaldo Eringco, Aileen Sanchez, Anna Lucille Cuevas and Alfred Cuevas

b. Unliquidated Cash Advances of Aileen Sanchez and Rey Eringco

c. Unauthorized Erroneous Computation and Distribution of Dividends which caused an upheaval of OCGEMPC members in year 2010.

2. Period Covered by the Investigation – As indicated in the OCGEMPC records which are the bases of this investigation, the period to be covered by this investigation shall be from year 2008 to March 2011.

D. METHODOLOGY AND PRECEDURE OF THE INVESTIGATION

1. The investigation shall be done mainly through a diligent review of OCGEMPC official documents and records concerning the corresponding transactions under investigation. This shall include, but may not be limited to, loan notes, ledgers, journals, transacted checks, books of accounts and other financial documents.

2. Face to face interviews of the principals, concerned OCGEMPC staff and other witnesses shall also be done whenever necessary to elicit pertinent information, verify records, clarify transaction procedures and crosscheck the testimony of some witnesses.

3. Whenever necessary, some of those concerned may be requested to sign affidavits.

4. The proceedings of the investigation and the facts gathered shall be thoroughly and systematically recorded for official record purposes and other future use.

E. THE INVESTIGATING BODY

1. As provided in the OCGEMPC By-Laws, the Board shall be the body to conduct this investigation. It may, however, seek the assistance of the Ethics Committee and other Committees of the OCGEMPC in the conduct of this investigation.

Done this 31st day of March 2011 at Olongapo City, Philippines.

2011 R - 008 - APPROVING THE SCHEDULE OF GENERAL ASSEMBLY AND ELECTION-RELATED ACTIVITIES

Excerpts from the Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 11 March 2011 at the OCGEMPC Board Room, Olongapo City Hall

Resolution No. 2011-008

APPROVING THE SCHEDULE OF GENERAL ASSEMBLY AND ELECTION-RELATED ACTIVITIES

WHEREAS, R.A. 9520 and the OCGEMPC By-Laws require the holding of a General Assembly and Election of Officers every year;

WHEREAS, the Election Committee has proposed the adoption of a schedule of activities leading to the conduct of the annual General Assembly and Election of Officers for the guidance of all concerned, and to ensure that these activities shall be conducted in a truly democratic manner;

NOW THEREFORE, upon motion duly made and seconded, the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative in meeting assembled:

RESOLVE, AS IT IS HEREBY RESOLVED, to adopt the proposed Schedule of Activities leading to the annual OCGEMPCI General Assembly and Election of Officers, as follows:

Activity

1. Announce date and venue of the GA; announce/post vacant positions to be filled up through elections

2. File Certificates of Candidacy (CC)

3. Screen candidates; release list of, and notify qualified candidates

4. Candidates campaign

Schedule/Duration:

1. At least 30 days before GA announce/post vacant positions to be filled up through elections

2. Start exactly 30 days before elections, lasting 10 consecutive days,ending at 5:00 p.m. on the 10th day

3. Start exactly on the day after deadline notify qualified candidates of filing CC’s, lasting exactly 7 consecutive calendar days thereafter

4. Start exactly 14 days before election and ends on election day

Done this 11th day of March 2011 at Olongapo City, Philippines.

2011 R - 007 - APPROPRIATING THE AMOUNT OF P200, 000 TO DEFRAY THE EXPENSES FOR THE 2011 OCGEMPC GENERAL ASSEMBLY

Excerpts from the Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 11 March 2011 at the OCGEMPC Board Room, Olongapo City Hall

Resolution No. 2011-007

APPROPRIATING THE AMOUNT OF TWO HUNDRED THOUSAND PESOS (P200, 000) TO DEFRAY THE EXPENSES FOR THE 2011 OCGEMPC GENERAL ASSEMBLY

WHEREAS, it is necessary to allocate funds for the conduct of the OCGEMPC 2011 General Assembly in order to ensure its success and at the same time put a limit on its expenses;

NOW THEREFORE, upon motion duly made and seconded, the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative in session assembled:

RESOLVE, AS IT IS HEREBY RESOLVED, to, as it hereby appropriates the amount of Two Hundred Thousand Pesos (P200,000) out of the general operating funds of the OCGEMPC, to defray the expenses to be incurred in the conduct of the General Assembly to be held in 20 April 2011.

Done this 11th day of March 2011 at Olongapo City, Philippines.