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.