MEMORANDUM OF AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This MEMORANDUM OF AGREEMENT made and executed by and between:

--------., a rural bank duly organized and existing under by virtue of the laws of the Republic
of the Philippines, with principal place of business at J.P Rizal St., Lipa City, Batangas, represented
herein by its ----------hereinafter referred to as the FIRST PARTY.
-and-
BARANGAY OF SAMPAGA, SAN ANTONIO, QUEZON, represented in this act by its
BARANGAY CHAIRMAN, ------------- and BARANGAY TREASURER-------------- and referred to as the
SECOND PARTY.

WITNESSETH THAT
WHEREAS, the FIRST PARTY on an offer and acceptance basis, is willing to extend
personal loan on a salary deduction basis under -------------.
WHEREAS, the Barangay of ---------A desires to have its official avail of Salary Loans, on a
salary deduction basis under -------- Salary Loan Program subject to terms and conditions of this
MEMORANDUM OF AGREEMENT.
NOW, THEREFORE, for and in consideration of the above premises the parties hereto
have mutually agreed as they do hereby agreed, on terms, conditions, and covenants herein
below set forth:
1. Barangay Officials of Barangay ------------ shall be covered by Salary Loan Program.

2. That the SECOND PARTY undertakes to deduct monthly from honorarium of officials
availing the foregoing credit accommodation under this MEMORANDUM OF
AGREEMENT, herein called the “BORROWER’’, the amount of monthly amortization,
stipulated in the promissory notes executed by the BORROWER. The SECOND PARTY
further undertakes to remit the same to FIRST PARTY within the month of the said
monthly amortizations.

3. That the SECOND PARTY agrees and binds itself to pay five (5%) percent a month
representing penalties, collection and handling charges for any deducted or retained
unremitted collections due date, if no remittance was made.

4. The granting of salary loans to officials of the SECOND PARTY shall be temporarily
suspended whenever the Salary Loan of anyone of its Officials becomes past due and
shall only resumed when the past due accounts becomes current.

5. In case of death of the official, the SECOND PARTY shall collect from the CO-MAKER
who is liable for the amount required to cover the outstanding balance of the loan.

6. Should the SECOND PARTY fail to deduct and/or remit the amortization herein
before mentioned, it is hereby agreed that the signatories for and in behalf of the
 SECOND PARTY shall be jointly liable and severally liable for the loan and obligations
incurred by its officials.

7. This MEMORANDUM OF 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
BORROWER and/or CO-MAKERS hereunder, as long as there are still outstanding or
unpaid loans.

IN WITNESS WHEREOF, the parties hereto have by these presents executed this
MEMORANDUM OF AGREEMENT this _____ day of DECEMBER 2019, in San Antonio,
Quezon, Philippines.

-------------

BY: BY:

-------------- ----------------
Vice President for Operations Brgy. Captain

----------------------
Brgy. Treasurer

SIGNED IN THE PRESENCE OF