2013 R - 015 - Providing Interest Rate of .5 Percent for Savings Deposit which is 100% higher than other Banks’ Rate

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 15 May 2013 at the OCGEMPC Training Room

Resolution No. 2013 -015

Providing Interest Rate of .5 Percent for Savings Deposit which is 100% higher than other Banks’ Rate

WHEREAS, Art. 7. of Republic Act No. 9520 otherwise known as the Cooperative Code of 2008 states that the primary objective of every cooperative is to help improve the quality of life of its members by providing goods and services to its members to enable them to attain increased income, savings, investments, productivity, purchasing power;

WHEREAS, Art. 6 of the same Code states that the purpose of cooperative is “to encourage thrift and savings mobilization among the members”;

WHEREAS, Section 11 a. of Article VIII on Savings Deposits of OCGEMPC Bylaws states that “Any member, in addition to his share capital investment, may open a savings deposit, the rate of interest of which shall be determined by the Board at the beginning of each fiscal year in no case to exceed the rate prescribed by Central Bank of the Philippines”;

WHEREAS, Director Jaime L. Mendoza moved for an interest rate of .5% for savings deposit which is 100 percent higher than other bank rates;

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 providing interest rate of .5 percent for savings deposit which is 100% higher than other banks’ rate;

RESOLVED FURTHER to conform as it is hereby conformed to Section 11 a. of Article VIII of the Bylaws which states that “Savings deposits not falling below FIVE HUNDRED PESOS (500.00) during any calendar month shall be entitled to interest to be computed quarterly based on the lowest monthly balance outstanding during the period. The interest shall be credited to the depositor’s account, and the same shall earn interest from the date it is credited, at the same rate as savings deposits”.

RESOLVED FINALLY, that savings deposits shall only be entitled to interest if no withdrawal was made during the last month of each quarter.

Done this 15^th day of May 2013 at Olongapo City, Philippines.

2013 R - 019 - APPROVING THE APPLICATION FOR VOLUNTARY TERMINATION OF MEMBERSHIP OF CELSO BULANHAGUI, ET AL

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 15 May 2013 at the OCGEMPC Training Room

Resolution No. 2013 – 019

APPROVING THE APPLICATION FOR VOLUNTARY TERMINATION

OF MEMBERSHIP OF CELSO BULANHAGUI, ET AL

WHEREAS, Art. 28 of Republic Act 9520 otherwise known as the Cooperative Code of 2008 on Termination of Membership states that “A member of a cooperative may, for any valid reason, withdraw his membership from the cooperative by giving a sixty (60) day notice to the Board of Directors”;

WHEREAS, Section 7b Article II of OCGEMPC Bylaws on Voluntary Termination states that “A member may, for any reason, terminate his membership by submitting a letter of voluntary termination to the board of directors. However, no member shall be allowed to withdraw or terminate his membership during any period in which he has any pending obligation either as a borrower, co-maker or guarantor of a loan”.

WHEREAS, the following members submitted their notice of voluntary termination with corresponding date of application;

1. Elizabeth Libut                   March 6, 2013

2. Llwellyn Rocello Jr.           March 14, 2013

3. Cristina Sangilan                March 21, 2013

4. Evelyn A. Rico                   March 26, 2013

5. Oscar Saure Jr.                   April 1, 2013

6. Ferdinand Reduca               April 1, 2013

WHEREAS, It was confirmed by the management that the abovementioned members have no pending liability either as a borrower, co-maker or guarantor of a loan;

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 approve as it hereby approved the Application for Voluntary Termination of Membership of Elizabeth Libut et al;

RESOLVED FURTHER, to conform as hereby conformed to Section 9 Article II of OCGEMPC Bylaws on Appraisal and payment of Members Interest Upon Termination of Membership which states that “Upon the termination of the membership of a member, the Board of Directors shall determine the book value of the member’s share capital which shall in no case exceed the par value, as established at the year-end audited financial statement nearest to the date of termination and shall fix the amount thereof in money to be paid subject to the availability of funds”.

Done this 15^th day of May 2013 at Olongapo City, Philippines.

2013 R - 07 - Awarding to Audit the Financial Condition of the Olongapo City Government Employees’ Multi Purpose Cooperative for the CY 2012 to Ms. Cecilia Moselina, CPA

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 19 February 2013 at the OCGEMPC Training Room

Resolution No. 2013 -007

Awarding to Audit the Financial Condition of the Olongapo City Government Employees’ Multi Purpose Cooperative for the CY 2012 to Ms. Cecilia Moselina, CPA

WHEREAS, the Cooperative was in search for a Certified Public Accountant accredited by the Cooperative Development Authority (CDA) in compliance with the requirement of the  Authority;

WHEREAS, Ms. Cecilia Moselina, CPA, expressed her intention thru letter to audit the financial condition of the Coop for the CY 2012;

WHEREAS, Her proposal of fees and billing includes related statement of operation, cash flows and changes in equity for the year then ended amounting to Forty Thousand Pesos (P40,000.00) excluding the Out-of-Pocket expenses;

WHEREAS, such amount is lesser than the proposed bill of Villalobos, Penaflor & Co. CPA’s who audited the 2011 Coop Finances;

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 award as it is hereby awarded to audit the financial condition of the Olongapo City Government Employees’ Multi Purpose Cooperative for the CY 2012 to Ms. Cecilia Moselina, CPA.

FURTHER RESOLVED to require the external auditor to use the PESOS and CAPR as prescribed requirement by the CDA in the financial audit.

Done this 19^th day of February 2013 at Olongapo City, Philippines.

2013 R - 06 - Filing of Administrative Case and Legal Case against Mr. Fernando Magrata if no Indication of Paying His Balances until the End of February

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 19 February 2013 at the OCGEMPC Training Room

Resolution No. 2013 -006

Filing of Administrative Case and Legal Case against Mr. Fernando Magrata if no Indication of Paying His Balances until the End of February

WHEREAS, under Resolution No. 2011-035 dated July 22, 2011, the Board of Directors (BOD) resolved to authorize the Chairman to file legal cases against Fernando Magrata, Reynaldo Eringco, Aileen Sanchez and Leticia Doropan;

WHEREAS, the General Assembly ratified the resolution passed by the BOD for the filing  a case against Mr. Magrata and company during annual General Assembly meeting held on April 9, 2012;

WHEREAS, since then, efforts of collecting payments from Mr. Magrata had been exhausted with no avail;

WHEREAS, the dialogue of OCGEMPC officers with Ms. Anne Gordon on February 3, 2013 regarding the loan of Mr. Ferdie Magrata did not materialize;

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 file as it is hereby filed an administrative case and a legal case against Mr. Ferdie Magrata if no indication of paying his balances until the end of February.

FURTHER RESOLVED to scout a lawyer or shall take the offer of Atty. Noel Atienza if hiring a lawyer shall affect the budget of the coop considerably.

Done this 19^th day of February 2013 at Olongapo City, Philippines.

2013 R - 05 - AVAILING LOAN PROTECTION PLAN IN LIEU OF THE EXISTING LOAN PROTECTION FUND

Excerpts from the Minutes of the Special Meeting of the Board of Directors of the Olongapo City Government Employees Multi-Purpose Cooperative (OCGEMPC) Held on 13 February 2013 at the OCGEMPC Training Room

Resolution No. 2013-05

AVAILING LOAN PROTECTION PLAN IN LIEU OF THE EXISTING 

LOAN PROTECTION FUND

WHEREAS, it has been the scheme of the Coop to deduct the unpaid balance of the borrower member who met his death from his share, savings, government benefits or if not enough from his co-maker/s;

WHEREAS, such scheme had affected the borrower’s estate and of the co-maker’s income;

WHEREAS, Loan Protection Plan/Credit Life (LPP/CL) is a program where the loan/s of the borrower members are insured to guarantee the creditor;

WHEREAS, with LPP/CL the loan of the borrower member shall be paid in the event of his death;

WHEREAS, the LPP/CL guarantees a prompt settlement of outstanding indebtedness and assures that the unpaid balance will not burden debtor’s family or estate thus develop goodwill with debtor’s family;

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 avail as it is hereby avails Loan Protection Plan/Credit Plan in lieu of the existing Loan Protection Fund.

Done this 13th  day of February 2013 at Olongapo City, Philippines.