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.