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MEMORANDUM OF AGREEMENT FOR HONORARIUM FACILITY

KNOW ALL MEN BY THESE PRESENTS:

This Memorandum of Agreement made and entered by and between: TAYTAY SA KAUSWAGAN, INC., a financial institution duly organized and existing under and by virtue of the provisions of R.A. 7353, as amended, with principal office at A & L Building E. Lopez St. Jaro, Iloilo City, represented in this Act by its Head-Individual Lending DOLORES DE LA PEÑA, hereinafter referred to as the “BANK”. and BARANGAY OFFICIALS, A Local Government Unit, with principal address at Barangay Loboc, Lapaz, Iloilo City, represented herein by its Punong Barangay Godofredo Zepeda and hereinafter referred to as the “BARANGAY”.

WITHNESSETH: that WHEREAS, the Barangay requested TAYTAY SA KAUSWAGAN, INC., to extend its Honorarium Loan Facility to the BARANGAY’S qualified officials: WHEREAS, TAYTAY SA KAUSWAGAN, INC., has agreed to the BARANGAY’S request subject to such terms and condition as may be mutually agreed upon: NOW THEREFORE, for and in consideration of the foregoing premises and mutual covenants and stipulations hereafter set forth, the parties hereby mutually agree as follows: I. The grant honorarium loan to the BARANGAY’S qualified Barangay officials shall be subject to the following terms and conditions; A. BORROWER’S ELIGIBILITY CRITERIA 1. Must be a duly elected and qualified official ( barangay captain/kagawad/secretary/treasurer ) of the Barangay; 2. Must have no pending administrative/civil/criminal cases filed against him/her; 3. Must have no pending application for retirement or must not be due for retirement within the term of the loan; 4. Must be up-to-date in the payment of their existing loans, if any;

5. Must have a monthly net take home pay of any amount after considering all statutory deductions and amortizations of all existing loans, including the honorarium loan being applied for, and; 6. Must have the joint and Several Signatures (JSS) of Barangay Captain and Barangay Treasurer or at least two (2) Barangay Kagawad of equivalent rank honorarium, provided that the co-maker belongs to a Barangay in the same LGU. 7. Must be 18 – 64 years of age and should not be 65 years of age at the time of loan maturity. Physically fit and be able to perform the usual duties of livelihood. A. LOAN AMOUNT Qualified barangay officials may avail of loan in an amount equivalent to Six months (6) honoraria or Fifteen Thousand Pesos ( Php 15,000.00 ), whichever is lower. No loan shall be granted within the six- month period immediately preceding a barangay election. B. MANNER OF RELEASE The loan shall be released in lump sum to the barangay official/borrower, service fee and other charges such as Value Added Tax (VAT) and Credit Life Insurance (CLI) premium on the outstanding loan amount shall be deducted from the loan proceeds upon release of loan. C. TERMS / PAYMENTS 1. The honorarium loan will have a term of maximum of one (1) year but not to exceed the remaining term of office. However, in no case shall the loan term exceed the three (3) month period prior to the expiration of the term of office of the borrower; 2. The loan shall be paid in equal monthly amortization (principal plus interest) which shall be deducted from the borrower’s honorarium by the Barangay Treasurer and remitted to TAYTAY SA KAUSWAGAN, INC., not later than five (5) banking days after payroll date. 3. Deduction from the honorarium shall be at two and a half per centum (2.5%) per month.

II. COVENANT OF THE PARTIES A. The BARANGAY shall: 1. Notify TAYTAY SA KAUSWAGAN, INC., within seven (7) days when a barangay official and or/ co – maker transfer, terminated or separated from the BARANGAY; 2. In case of termination/separation of any barangay official/borrower, withhold the corresponding amount due to TAYTAY SA KAUSWAGAN, INC. from all the moneys, bonuses, retirement and other benefits accruing to the employee/borrower and remit the amount collected to TAYTAY SA KAUSWAGAN, INC., within thirty (30) days from notice. In the event in the amount collected is not sufficient to pay loan, the barangay shall collect from the co-maker the amount required to cover the outstanding balance of the loan; 3. Continue the payroll deductions from the barangay official/borrower until receipt of a written notice from TAYTAY SA KAUSWAGAN, INC., of the settlement of the employee/borrower’s obligation; 4. Assist in the implementation of the program Guidelines as well as loan agreement and other documents signed by the barangay official/borrower and co-makers; and 5. Comply with the pertinent terms and conditions: B. TAYTAY SA KAUSWAGAN, INC. shall: 1. Provide honorarium loans to the BARANGAY’S barangay officials subject to TAYTAY SA KAUSWAGAN, INC., implementing program guidelines; 2. Provide the BARANGAY a copy of the documents signed by the barangay official/borrower authorizing the BARANGAY to deduct from his/her salary the monthly loan amortization; 3. Provide the BARANGAY the list of approved loan applications under the Honorarium Loan Facility, including the loan amount, date of release and amortization schedule. III. EFFECTIVELY This Agreement shall be effective from the date of execution hereof and shall remain in full force and effect unless terminated by any of the parties hereto upon thirty (30) days prior written notice to the other, provided however, that this Agreement shall continue to be in effect with respect to the obligations of the Borrowers and Co-makers hereunder, as long as these are still outstanding or unpaid loans.

IN WITNESS WHEREOF, the parties through their respective authorized representative have hereunto signed Agreement this ________ day of _______ 2008 at ___________. TAYTAY SA KAUSWAGAN, INC.

BRGY. LOBOC, LAPAZ, ILOILO CITY

BY: DOLORES DE LA PEÑA Head-Individual Lending

BY:

GODOFREDO ZEPEDA Punong Barangay

SIGNED IN THE PRESENCE OF SONILO CRASCO JR.

ANALYN MAGBANUA

ACKNOWLEDGEMENT REPUBLIC OF THE PHILIPPINES) PROVINCE OF ILOILO ) S.S. CITY OF ILOILO ) X------------------------------------X BEFORE ME, this ______ day of ______, 2008 in the City of Iloilo, personally came and appeared: NAME DOLORES DE LA PEÑA GODOFREDO ZEPEDA

CTC NO. 20576962 20571207

ISSUED ON/AT 1/25/08 - ILOILO CITY 1/18/08 – ILOILO CIT

All known to me and to me known to be the same persons who executed the foregoing instrument and acknowledgement that the same to be their free and voluntary act and deed. Said instrument refers to as MEMORANDUM OF AGREEMENT consisting of four (4) pages, including this page thereof, and sealed with my notarial seal. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the day, year and place first above written. Doc. No. ____________ Page No. ____________ Book No. ____________ Series of 2008

BARANGAY MUNICIPALITY PROVINCE

: : :

Name Josefina Hilado Wenefredo Tyones Herman Sianson Jeffrey Francisco Herichie Artiaga Marcelino Espeso Jr.

NONOY ILOILO ILOILO

Title of Position Brgy. Captain Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Secretary Brgy. Treasurer

Authorized Rate Per Annum 4,161.00 3,119.00 3,119.00 3,119.00 3,119.00 3,119.00

Budget Year 49,932.00 37,428.00 37,428.00 37,428.00 37,428.00 37,428.00

Punong Barangay Kagawad/ SK/ Secretary/ Treasurer

Prepared By:

CERTIFIED CORRECT:

MARCELINO ESPESO JR.

JOSEFINA HILADO

Brgy. Treasurer

Punong Barangay

Republic of the Philippines Province of Iloilo Municipality of ILOILO Barangay NONOY OFFICE OF THE SANGGUNIANG BARANGAY EXCERPTS FROM THE MINUTES OF THE SPECIAL MEETING OF THE SANGGUNIANG BARANGAY OF NONOY, ILOILO, HELD AT THE BARANGAY HALL ON FEBRUARY 5, 2008 AT 10 A.M. PRESENT: NAME Josefina Hilado Wenefredo Tyones Herman Sianson Hermogenes Artiaga Sr. Jeffrey Francisco Jose Mario Quisto Nilda Tan Ferdinand Rubin Arpole John Gonzales Herichie Artiaga Marcelino Espeso Jr.

POSITION Punong Barangay Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad SK Chairman Brgy. Secretary Brgy. Treasurer

RESOLUTION NO. 03 SERIES OF 2008 A RESOLUTION THAT THE BARANGAY COUNCIL OF BARANGAY BALABAG WILL HAVE A TIE-UP WITH TAYTAY SA KAUSWAGAN, INC. FOR EVERY LOAN OF BARANGAY COUNCIL MEMBERS. WHEREAS, The Sangguniang Barangay have a tie-up with Taytay sa Kauswagan, Inc. THEREFORE, on motion of Kagawad Hermogenes Artiaga Sr. and duly seconded by Kagawad Wenefredo Tyones. BUT IT RESOLVED, as it is hereby resolved for the approval of tie-up with the Barangay Council of Brgy. Nonoy and with the Taytay Sa Kauswagan, Inc. ADOPTED UNANIMOUSLY, This 5th day of February, 2008. I hereby certify to the correctness of The above quoted resolutions HERICHIE ARTIAGA Brgy. Secretary

Republic of the Philippines Province of Iloilo Municipality of ILOILO Barangay NONOY OFFICE OF THE SANGGUNIANG BARANGAY EXCERPTS FROM THE MINUTES OF THE SPECIAL MEETING OF THE SANGGUNIANG BARANGAY OF NONOY, ILOILO, HELD AT THE BARANGAY HALL ON FEBRUARY 5, 2008 AT 10;00 A..M. PRESENT: NAME Josefina Hilado Wenefredo Tyones Herman Sianson Hermogenes Artiaga Sr. Jeffrey Francisco Jose Mario Quisto Nilda Tan Ferdinand Rubin Arpole John Gonzales Herichie Artiaga Marcelino Espeso Jr.

POSITION Punong Barangay Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad SK Chairman Brgy. Secretary Brgy. Treasurer

RESOLUTION NO. 04 SERIES OF 2008 A RESOLUTION THAT THE BARANGAY CAPTAIN JOSEFINA HILADO AND BARANGAY TREASURER MARCELINO ESPESO JR. WILL ACT AS THE CO-MAKER OF LOAN OF EACH AND EVERY MEMBER BORROWER. WHEREAS, The Sangguniang Barangay authorized the Barangay Captain and Barangay Treasurer to act as the co-maker of each and every member borrowers; THEREFORE, on motion of Kagawad Hermogenes Artiaga Sr. and duly seconded by Kagawad Wenefredo Tyones; BE IT RESOLVED, as it is hereby resolved for the approval of the Barangay Captain and Barangay Treasurer as the co-maker for each member borrower. ADOPTED UNANIMOUSLY, This 5th day of February, 2008 I hereby certify to the correctness of the above quoted resolutions

HERICHIE ARTIAGA Brgy. Secretary

Republic of the Philippines BARANGAY NONOY Iloilo City EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG BARANGAY NONOY, ILOILO CITY HELD AT THE BARANGAY HALL ON February 5, 2008. PRESENT: NAME Josefina Hilado Wenefredo Tyones Herman Sianson Hermogenes Artiaga Sr. Jeffrey Francisco Jose Mario Quisto Nilda Tan Ferdinand Rubin Arpole John Gonzales Herichie Artiaga Marcelino Espeso Jr.

POSITION Punong Barangay Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad SK Chairman Brgy. Secretary Brgy. Treasurer

RESOLUTION NO. 05 Series of 2008 A RESOLUTION THAT AUTHORIZES BARANGAY TREASURER TO DEDUCT THE MONTHLY AMORTIZATION OF THE SANGUNIANG BARANGAY MEMBER BORROWER.

WHEREAS, the Sangguniang barangay authorized Barangay Treasurer Marcelino Espeso Jr. to deduct the monthly amortization of each sanguniang Barangay member borrower. NOW THEREFORE, on motion of Kagawad Hermogenes Artiaga Sr. and duly seconded by Kagawad Wenefredo Tyones BE IT, RESOLVE AS IT IS HEREBY RESOLVED, Sangguniang Barangay of Barangay Nonoy, Iloilo The approval of the barangay Treasurer, to deduct the monthly amortization of each Sangguniang Barangay member borrower. RESOLVED FURTHER, to furnish copies of resolution to the office of the Executive Director of TAYTAY SA KAUSWAGAN,INC., for their guidance and information. ADOPTED, this 5th day of February, 2008, unanimously. I hereby certify to the correctness of the foregoing Resolution which was duly adopted by the Sangguniang Barangay during its meeting on February 5,2008. HERICHIE ARTIAGA

Barangay Secretary

Republic of the Philippines OFFICE OF THE BARANGAY Iloilo City

CERTIFICATION TO WHOM IT MAY CONCERN: This to certify that the following are the Barangay Officials of Barangay Balabag.

NAME

Andresito Jurilla Virgilio GUmban Torchie Rose Escaniel Jeanne Mi Chelle Hontoria Alfredo Perez Nove Marie Jalbuna Jaime Janobas Rene Mecha Jaywardene Hontoria Ruvylyn Nobleza Sante Presaldo

Position:

Punong Barangay Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad SK Chairman Brgy. Secretary Brgy. Treasurer

This is to certify further that as per our records show, no administrative case or any other legal actions has been filed against any of the above-named barangay officials.

This certification is issued upon the request of Punong Barangay Andresito Jurilla for their loan application with TAYTAY SA KAUSWAGAN, INC.

Given this__________ day of _________________,2008, Iloilo City, Philippines

Andresito Jurilla Punong Barangay Barangay Balabag

Republic of the Philippines Barangay Balabag Iloilo City

CERTIFICATION To Whom It May Concern: The following are the Barangay Officials of Barangay Balabag, Pavia, Iloilo City, whose respective names and honoria are stated below.

Name

Andresito Jurilla Virgilio GUmban Torchie Rose Escaniel Jeanne Mi Chelle Hontoria Alfredo Perez Nove Marie Jalbuna Jaime Janobas Rene Mecha Jaywardene Hontoria Ruvylyn Nobleza Sante Presaldo

Position

Amount

Punong Barangay Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad SK Chairman Brgy. Secretary Brgy. Treasurer

P 22,905.00 P 3,900.00 P 3,900.00 P 3,900.00 P 3,900.00 P 3,900.00 P 3,900.00 P 3,900.00 P 3,900.00 P 4,400.00 P 4,400.00

WE HEREBY SEVERALLY CERTIFY in our official capacity that the above-state names and monthly honoraria of Barangay Officials are true and correct.

Andresito Jurilla Punong Barangay

Sante Presaldo Barangay Treasurer

Republic of the Philippines Province of Iloilo Municipality of Pavia

OFFICE OF THE SANGGUNIANG BAYAN

To Whom It May Concern: This is to certify that the following Barangay Officials of Brgy.Balabag, Pavia, Iloilo having been elected during the October 29, 2008 Synchronized Barangay/ SK Election.

Name Andresito Jurilla Virgilio GUmban Torchie Rose Escaniel Jeanne Mi Chelle Hontoria Alfredo Perez Nove Marie Jalbuna Jaime Janobas Rene Mecha Jaywardene Hontoria Ruvylyn Nobleza Sante Presaldo

Position Punong Barangay Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad Brgy. Kagawad SK Chairman Brgy. Secretary Brgy. Treasurer

I hereby certify that the said barangay officials has no administrative nor

criminal record filed in this Office for resolution.

Given this _______ day of _______,2008, Iloilo, Philippines

Andresito Jurilla Punong Barangay

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