SURETY AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Surety Agreement is entered into by and between:

METRO CEBU COOPRENEURS SURETY FUND, a non-profit trust

FUND duly registered with the Bureau of Internal Revenue, with
principal office at c/o NATCCO Network Visayas, Geson Building,
Jakosalem St., Cebu City, represented by its Chairman, Reynaldo A.
Gandionco, hereinafter referred to as the SURETY;

-and-

CEBU PEOPLES MULTI-PURPOSE COOPERATIVE., a cooperative

duly organized under Cooperative Code of the Philippines and
registered with the Cooperative Development Authority, with principal
office at Pasil, Cebu City, represented by its Chief Executive Officer,
Macario G. Quevedo, hereinafter referred to as the ENDORSER;

-in favor of-

LAND BANK OF PHILIPPINES, a government financial institution

organized and existing pursuant to Republic Act 3844, as amended by
Republic Act 7907 dated 23 February 1995, otherwise known as the
Amended LBP Charter, with principal office at J. Quintos St., Malate,
Manila, Philippines, hereinafter referred to as the CREDITOR BANK

WITNESSETH: That

WHEREAS, JUAN DELA CRUZ (the BORROWER), a member of

the ENDORSER, has obtained a loan with the CREDITOR BANK in the
amount of PESOS: ONE MILLION (P1,000,000.00) to be secured by
this surety agreement;

WHEREAS, said loan is evidenced by a promissory note no. ____

dated ______, executed by the BORROWER in favor of the CREDITOR
BANK, payable upon maturity/monthly installments with interest rate
of ___________________ (__%) per annum;

WHEREAS, the SURETY has made available to the BORROWER

a credit enhancement support to ensure that in the event of latters
default, the CREDITOR BANK will be able to promptly recover its
credit exposure pertaining to the aforementioned loan;

NOW, THEREFORE, for and in consideration of the foregoing

premises and the covenants contained herein, the SURETY (per Board
Resolution No. 2013-___ dated __), hereby guarantees and warrants to
the CREDITOR BANK, its successors and/or assigns, the payment of

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the loan granted to the BORROWER, as evidenced by a promissory
note, instruments or documents executed by the BORROWER
amounting to PESOS: ONE MILLION ONLY (P1,000,000.00), subject
to the following terms and conditions:
1. The CREDITOR BANK shall file a claim against the SURETY
after the loan covered by this Agreement has become past due
and demandable.

2. The CREDITOR BANK shall assign to the SURETY, without

recourse and without any other conditions, all the CREDITOR
BANKS claims against the BORROWER and to deliver all
pertinent original documents and evidence of indebtedness,
including all promissory notes and agreements; checks issued by
the BORROWER; monthly statements of bank deposit; debit and
credit memos; communications to and from the BORROWER;
and such other documents in the possession of the CREDITOR
BANK that the SURETY may need to enforce collections of the
debt;

3. Upon receipt of the claim of the CREDITOR BANK, together with

the required documents, on account of the past due loan, the
SURETY shall exert its best effort to effect payment of the
outstanding unpaid principal loan balance within a reasonable
period of time, subject to the following limitations:

a) Eighty percent (80%) of the unpaid principal if the

unpaid principal amounts to more than seventy percent
(70%) of the original loan; or

b) Ninety percent (90%) of the unpaid principal if the

unpaid principal amounts to more than forty percent
(40%), but not exceeding seventy percent (70%) of the
original loan; or

c) One Hundred percent (100%) of the unpaid principal, if

the unpaid principal amounts to forty percent (40%) of
the original loan, or less.

4. The ENDORSER that has endorsed the loan of the BORROWER

shall be liable to the SURETY for the total payments made by the
latter to the CREDITOR BANK.

5. Accordingly, the ENDORSER shall collect the past due loan from
the BORROWER including principal, interest, penalties,
foreclosure, litigation and other incidental expenses.

6. The ENDORSER shall remit to the SURETY its collections on the

defaulted loans until such time the latter shall have recovered in
full the amount of its exposure on account of claims already paid.

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 7. Upon the failure of the ENDORSER to pay the SURETY on
account of the past due loan, the latter may also collect directly
from the BORROWER including principal, interest, penalties,
foreclosure, litigation and other incidental expenses.

8. Any amount collected by the SURETY, after deducting collection

and incidental expenses, interest, penalties and other charges
due, shall first be applied to the amount paid by the SURETY,
any excess shall be paid to the CREDITOR BANK until it is able
to recover fully its loan exposure;

9. The SURETY and the CREDITOR BANK hereby agree to inform

each other from time to time about the business operations and
credit performance of the BORROWER and to set up, for that
purpose, a periodic monitoring mechanism to ensure that
appropriate risk mitigating measures are installed promptly;

10. This surety agreement shall not cover any extension,

renewal or novation of the loan in the nature of new, separate
and additional loans without approval of the SURETY.

IN WITNESS WHEREOF, the parties have hereunto set their

hands on this______day of____________________, at _____________________,
Philippines.

ENDORSER SURETY

CEBU PEOPLES MULTI-PURPOSE METRO CEBU COOPRENEURS

COOPERATIVE SURETY FUND

By: By:

MACARIO G. QUEVEDO REYNALDO A. GANDIONCO

Chairman, Board of Directors Chairman, Oversight Committee

Signed in the presence of

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__________________________ _______________________

ACKNOWLEDGMENT

Republic of the Philippines)

Cebu City ) S.S.

BEFORE ME, a Notary Public, for and in _________________, on this

_____ day of _____________________, personally appeared the following:

Name Community Tax Cert. Date Place

No./Tax Identification Issued Issued
No.
Reynaldo A. Gandionco
Macario G. Quevedo

Known to me and to me known be the same persons who

executed the foregoing Agreement and acknowledged to me that the
same is their free and voluntary act and deed, and that they are duly
authorized for the purpose.

This document consisting of Four (4) pages including this page

whereon this Acknowledgment is written, signed by the parties and
their witnesses on each and every page thereof and thereafter sealed
with my notarial seal, refers to a Surety Agreement

WITNESS MY HAND AND SEAL on the date and place above-

written.

NOTARY PUBLIC

Doc.No. ______
Page No. ______
Book No. ______
Series of ______