Postal Address: P.O. Box 3596 Manila Website: ” Republic of the Philippines DEPARTMENT OF SCIENCE AND TECHNOLOGY BOBT-11-05975 MEMORANDUM: MAY 24 20m FOR ALL DOST-CO Personnel FROM ELIZABETH A. FONTANILLA 7 Director, ALS DATE 26 April 2011 SUBJECT : Livelihood Loan Facility Program of the Land Bank of the Philippines (LBP) In connection with the Memorandum of Agreement (MOA) entered into between the Department of Science and Technology (DOST) and the Land Bank of the Philippines (LBP) regarding the latter's livelihood loan facility program, the following guidelines are hereby prescribed to ensure an effective and efficient implementation of the program: 1. The employee/borrower who applies for a livelihood loan y the Lank Bank of the Philippines shall execute a written declaration of consent that he/she is authorizing the Personnel Division to cause the appropriate deduction of the monthly toan amortizations from his/her salaries and/or allowances once the LBP approves his/her application for loan; 2. The aforesaid document shall be attached to the application for loan and shall form Part of the requirements of the application for loan, It shall also serve as proof for the Personnel Division to cause the appropriate deduction from the general payroll or voucher without need of further written notice from the employee-borrower; and 3. Non-issuance of the said document by the employee/borrower may be considered a valid ground to deny an application for livelihood loan with the Land Bank of the Philippines. For information, implementation, and compliance. ‘DOST-OsEC OSES 1164833 Deptt: Sen and Yeonoy Head Office: Gen, Santos Ave., Bicutan, Taguig City www.dost.gov-ph Tel. Nos. 837-20-71 t0,82 (TL)LAND BANK OF THE PHILIPPINES Of poston ote Repuic oe Prigpnes OORT -11-05975 Bicutan DOST Branch ve 16 May 2011 DIR. ELIZABETH A. FONTANILLA Director, Administrative and Legal Service Departmenty of Science and Technology DOST Compound, Bicutan Taguig City Dear Director Fontanilla: Herewith are two (2) sets of duly notarized Memorandum of Agreement for Livelihood Loan Facility between LANDBANK and DOST-C.O. We look forward for your agency's Salary Loan applications. Thank you and warm regards. Very truly yours, SYNPHA B. MALTO Head ‘ Do i [ed poted -7 Berrien beget il LLANDBANK Peza, 1598 MH. dol Par comer Dr) Quinica Si, Malte, Mana 1004 Tet. Ne. 522-0000» 851-2200» 450-7001 ‘welondbank.comRepublic of the Philippines DEPARTMENT OF SCIENCE AND TECHNOLOGY MEMORANDUM: bold ube FOR 2 THE SEERETARY” FROM —_—_: ELIZABETH A. FONTANILL 4 Hor Ustrigohe Diredtor Administrative & Legal £ SUBJECT —: Draft MEMORANDUM O between DOST and Lar Philippines, Bicutan; Liv Facility Program; DATE April 26, 2011 Attached herein for your signature is the drafted Memorandum of Agreement between DOST and LANDBANK OF THE PHILIPPINES in re: livelihood Loan Facility Program of Landbank of the Philippines benefiting DOST-CO employees. The dratled Memorandum of Agreement was referred for review to Mr. Sherwyne V. Famican. From his research and evaluation, based on our existing laws and govemment policies, the drafted Memorandum of Agreement substantially conforms to the required form and contents of a valid Agreement. Its provisions, substantially encompass all safeguards Needed to protect the interest of the Depariment and its employees. No provisions in the agreement constitute violation of existing DOST regulations or policy and all ore in accordance with law, government policy, rules and regulations. In view thereof, the undersigned respectfully recommends for the approval or execution of the MOA. Further, the undersigned also incorporated herein DOST-CO guideline for information of the employees about the loan facility in relation to the Department's commitment under the MOA to implement automatic payroll deduction system. For consideration, Postal Addr P.O. Box 3596 Manila jen. Santos Ave., Bicutan, Taguig City Website: wwe dos gov ph Tel. Nos. 837-20-71 to 82 (TL) Duy -F2I2Ewouy-11-05975 MEMORANDUM OF AGREEMENT FOR LIVELIHOOD LOAN FACILITY KNOW ALL MEN BY THESE PRESENT: This Memorandum of Agreement made and entered by and between: LAND BANK OF THE PHILIPPINES, a government financial institution creating and existing under and by virtue of the provision of Republic Act No. 3844 as amended, with principal office at LANDBANK Plaza, 1598 M. H. del Pilar cor. Dr. J. Quintos Street, Malate, Manila, Philippines., represented by this Act by its President and Chief Executive Officer, GILDA E. PICO, through his duly authorized representative, AVP MINDA D. RUBIO, Head, NCR-A, hereinafter referred to as “LANDBANI -And- DEPARTMENT OF SCIENCE AND TECHNOLOGY — CENTRAL OFFICE a government agency created and existing under and by virtue of Philippine law, with principal office address at General Santos Avenue, Upper Bicutan, Taguig City, represented herein by its Secretary MARIO G. MONTEJO hereinafter referred to as “DOST-CO". WITNESSETH: That ‘WHEREAS, the DOST-CO requested LANDBANK to extend its Livelihood Loan Facility (the “Facility”) to the qualified employees: WHEREAS, LANDBANK has agreed to extend the Facility to the DOST-CO subject to such terms and conditions as may be mutually agreed upon: NOW, THEREFORE, for and in consideration of the foregoing premises and of mutual covenants and stipulations hereafter set forth, the parties hereby mutually agree as follows: I. The grant of the Facility to the employees of DOST-CO are subject to the following terms and conditions: A. Borrower's Eligibility Criteria 1. Must be a regular/ permanent employee of the DOST-CO and, except for appointive officials and their co-terminus appointees, has been _ in its service for the last two (2) years; 2, Must have no pending administrative/criminal case; 3. Must have at least thirty (30) days of unexpended vacation and/or sick leaves; 4. Must have no pending application for retirement or not due for retirement within the term of the loan; 5, Must be up-to-date in the payment of their existing loans with LANDBANK, if any; 6. Must have a monthly net take-home pay of at least Three Thousand Pesos (P3,000.00) after considering all statutory deductions and amortizations of all ge loans, including the loan applied for oS &GOBT-11-03975 7. Must have a co-maker/surety who (a) is employed in the same office (b) with at least equal rank/salary grade and whose monthly net take home pay as the Borrower, and (c) is a co- maker/surety for not more than two (2) employee-borrowers under the Facility. B, Loan Amount Qualified employees may avail of loans equivalent to a minimum of one (1) month and a maximum of six (6) months of their basic pay. Provided however, that in no case shall the loan amount exceed Eighty Thousand Pesos (P80,000.00) for rank and file employees or One Hundred Fifty Thousand Pesos (P150,000.00) for officers or persons holding equivalent positions for non-elective officials (Rank & File — SG 17 & below , Officer — SG 18 and Up). C. Manner of Release The proceeds of the loan shall be credited to the Borrower's account with LANDBANK, net of applicable credit life insurance (CLI) premiums, documentary stamp taxes, interest charges, penalty (if applicable) and Other fees and charges. D. Repayments Terms 1. The fivelinood loan shall have the following terms: a, One (1) month loan maximum of twelve (12) months to pay b. Two (2) or Three (3) maximum of twenty four (24) ‘month loan ‘months to pay c. Four (4) to Six (6) maximum of thirty six (36) month loan months to pay 2. The loan shall be paid in equal monthly amortization via (a) deductions from the employee's salary by DOST-CO for remittance to LANDBANK not _ later than five (5) banking days after every (1 or 2% quincena) calendar month, or (b) debit from the employee's payroll account, if any with LANDBANK. 3. Salary deductions/automatic debit from borrower's deposit account shall commence on the payroll dates immediately succeeding the month the loan was released. 4. Loan re-availments shall only be allowed on or after the anniversary date of the loan provided that (a) LANDBANK has received payments equivalent to at Least twelve (12) monthly amortizations, and (b) the Co-maker/surety shall continue as co-maker/surety of the loan borrower /employee has a new co-maker/surety who is qualified under Section A.7 hereof. E. Interest Rates and Other Charges 1. The interest rate on the loan under the Facility shall be fixed at 14% per annum. 2. Interest for the first year shall be payable in advance and deducted from the loan proceeds and shall not be subject to | rebates in case or pre-termination. Interest for the subsequent rw and thereafter shall a in aes hapaSomr-11-03975 3. The borrower shall be required to obtain a CLI for the entire term of the loan. Accordingly, payments for premiums thereon that maybe charged within the term of the loan shall be deducted from the loans proceed. 4. In case of loan reavailment, the portion of the CLI premium which has not been utilized within the Original term of the loan may be utilized as payment for the CLI premiums that may be due on the new loan. Any deficiency on the unutilized portion for CLI premiums under the original loan shall be satisfied from the loan proceeds of the new loan. In case of pre-termination of the loan the portion of the CLI Premium which has not been utilized shall be forfeited in favor of the LANDBANK. 5. Applicable documentary stamp taxes shall be for the account of the Borrower. 6. All fees and other charges that may be due under the loan may be increased at any time during the term of loan, on account of a regulation of the Monetary Board of the Bangko Sentral ng Pilipinas, an increase in LANDBANK's cost of Funding and/or maintaining the loan or factors including, but not limited to, any special reserve requirements, exchange rate fluctuations and changes in the financial market. LANDBANK shall notify the DOST-CO and the Borrower of increase, which shall take effect on the next succeeding amortization period following such notice. F. Collateral/Securities The Livelihood loan shall be secured by an assignment by the borrower of his salaries, allowances, bonuses, retirement benefits, separation/gratuity pay, monetary value of accumulated leave credits and other monetary receivables from the DOST-CO and payroll deposits in favor of _LANDBANK. G. Past Due Account 1. An account shall be considered as technical past due if the borrower tells to pay his/her monthly amortization on due date. 2. A penalty fee equivalent to three percent (3%) per month shall be imposed on the past due amount from the due date of the loan up to the date of actual payment. 3. The granting of Livelihood Loan to the employees of DOST-CO shall be temporarily suspended whenever the technical past due rate of all its borrowing employees reaches ten percent (10%) of the total outstanding balance and shall be resumed only when the pats due accounts become oyII. Covenants of the Parties eee -11-05975 A. The DOST-CO shall: e 1. Maintain the required average daily balance of deposits or maintain deposits equivalent to at least one hundred percent (100%) of the total outstanding loan balance. This requirement may, however, be adjusted or increased by LANDBANK taking the consideration, the number of availments under the Facility. 2. Certify through its Personnel Department that the borrower and his co-borrower/surety are qualified to avail of the loan; 3. Collect or cause the collection of the installments/ amortizations due on the loans of their employees through automatic salary deductions; 4. Remit to LANDBANK not later than five (5) days after every (1* of 2" quincena) calendar month the borrowers payments from his payroll. 5. Notify LANDBANK within seven (7) days when a borrower and/or co-maker/surely is transferred, terminated or separated from service. 6. In the case of transfer or reassignment of a borrower to another unit/department within DOST-CO, instruct the Personnel Officer of the employee/borrower’s new work station to deduct the appropriate amortization from the employee/borrower's salary and remit the same not later than five (5) banking days after remittance date to LANDBANK’s Branch where the employee/borrower was transferred, 7. In case of transfer or reassignment of a borrower to another government agency, the loan shall become due and demandable. ‘The Disbursing Officer/Cashier shall deduct the total amount due from the borrower's salary and remit the same not later than five (5) banking days after every (1* or 2™ quincena) calendar month to LANDBANK; 8. In case of termination/separation from service of a borrower, withhold the corresponding amount due to LANDBANK from all moneys, bonuses, retirement and other benefits accruing to the employee/borrower and remit the amount collected to LANDBANK within thirty (30) days from notice. In the event the amount collected is not sufficient to pay the loan, the DOST-CO shall collect from the co-maker/surety the amount required to cover the outstanding balance of the loan; 9. Continue the payroll deductions from the employee/borrower until receipt of a written notice from LANDBANK of the full settlement of the borrower's obligations; 10.Assist in the implementation of the Facility’s guidelines as well as the loan and other documents signed by the borrower and co-maker/surety; and Comply with the pertinent terms and ws "TF &B. LANDBANK shall: wens -11- 03975 1. Provide livelihood loans to the qualified employees of DOST-CO subject to LANDBANK’s guidelines; 2. Provide the DOST-CO a copy of the document signed by the employee/borrower authorizing the Personnel Department of DOST-CO to deduct from his/her salary the monthly amortization; 3. Provide the DOST-CO the list of approved loan applications under the Facility, including the loan amount, date of release and amortization schedule. III. Other Conditions ‘A. Annual Review. The Facility shall be subject to annual review by LANDBANK and all availments and draw downs under this credit Program shall be subject to availability of funds. B. Determination of Eligibility. Anything in this Agreement to the contrary notwithstanding, the determination of the eligibility of Entities/Agencies and/or Borrower's/Co-maker’s under this program shall be the sole prerogative of LANDBANK. C. Supplement and Amendment. The parties hereto may supplement. or amend this agreement in writing as may be mutually agreed upon. IV. effectivity This Agreement shall be effective from the date of execution hereof and shall remain in full force and effect unless terminated by either partly 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 obligation of the Borrower's and/or co-makers/sureties. IN WITNESS WHEREOF, the parties through their Pre authorized representatives have hereunto signed this day of at —_______. DEPARTMENT OF SCIENCE LANDBANK OF THE PHILIPPINES AND TECHNOLOGY — OFFICE OF THE SECRETARY Hon. MARIO G. MONTEJO MINDA D. RUBIO DOST Secretary AvP/Head, NCR-A Af. SIGNED IN THE PRESENCE OF SYNPHA\B. MALTO Head, Bicutan DOST BranchACKNOWLEDGMENT Weer-11-03975 REPUBLIC.OF THE PHILIPPINES way 13 201 At the above stated place, on the day of ___ before me personally appeared; NAME Government-issued ID/ NO. Expiry MINDA D. RUBIO LBP ID #3596 MARIO G. MONTEJO Known to me the same person who executed the foregoing instrument and acknowledge the same to be their free and voluntary act and deed as well as those of the corporation and instrumentality of the Government herein represented. Said instrument refers to a MEMORANDUM OF AGREEMENT consisting of 6 ages including this page whereon the Acknowledgment is written, signed by the parties and their witnesses on the sigrtature page hereof, and initiated on the PIL DECI ROLL OF a’ Doc. No. _[4S° Page No., Nok MCLE COMPI, Book 7 TAP NO. 656155 — 1 Series of __U°7_ ©), 2681658 JAN. 3, 2011 MAKATI CITY —