MEMORANDUM OF AGREEMENT

This Memorandum of Agreement made and executed by and between:

RURAL BANK OF RIZAL (K-A), INC. (Hereinafter referred to as the BANK), a banking institution
duly organized and existing under laws of the Republic of the Philippines, with office at Babalag East, Rizal,
Kalinga thru its Manager Ms. Nerissa L. Orodio.

And

BLGU- SANTOR, RIZAL, KALINGA (Hereinafter referred to as the INSTITUTION), one of the
14th barangay in the Municipality of Rizal, Kalinga, represented herein by its Brgy. Captain Jonathan S.
Padios, Brgy. Treasurer – Ms. Erlinda R. Santiago and Brgy. Bookkeeper – Mrs. Jeremiana J. Manuel.

Witnesseth that:

WHEREAS, in order to provide financial assistance to the Brgy. Official and employees of the
INSTITUTION;

WHEREAS, in consideration of the BANK agreement to extend loan to the qualified personnel, the
INSTITUTION agrees to effect the necessary payroll deduction against the honorarium of the Brgy. Officials
and employees and to remit the same to the BANK for application to the payment of the loan in accordance
with the Program Guidelines, and subject to the terms and condition hereinafter set forth:

NOW THEREFORE, for and in consideration of the above premises, BANK and INSTITUTION,
hereby agree as follows:

SECTION I. COVENANTS OF THE INSTITUTION

BANK and INSTITUTION covenant and agree that during the terms of this agreement, the
entity/agency shall:

a. Certify that the borrower and co-maker possessed the necessary qualifications of an eligible
borrower or co-maker in accordance with the program guidelines.

b. Collect or cause the collection of the loan from the borrower through automatic payroll
deduction to commence on the payroll date immediately succeeding the date the loan was
granted.

c. Remit to the BANK the amount deducted from the borrower’s payroll within three (3) regular
working days after each payroll date. For this purpose, the INSTITUTION agrees to issue and
deliver its payment either in cash/check covering the accumulated amortization payments
made/ deducted from the borrower’s payroll. BANK shall issue a receipt for each remittance.

d. In case of separation or termination of the borrower from the service of the agency/entity the
outstanding loan shall become due and demandable and the INSTITUTION shall notify the
BANK of separation/termination of the borrower from the service within five (5) days from the
separation/termination. The INSTITUTION shall withhold the corresponding amount due to
the BANK such as bonuses, retirement, and other benefits accruing to the borrower and remit
the amount collected to the BANK. In the events the amount collected is insufficient to pay the
loan, INSTITUTION shall collect from the borrower’s co-maker the amount sufficient to
cover the balance of the loan plus the interest, fees and other charges and remit the same to
BANK within five (5) regular working days.

e. In the event that only the co-maker is terminated, separated or retired from the
INSTITUTION, it shall immediately notify the BANK of the said event. Thereupon, the
INSITUTION shall replace the resigned/separated/retired co-maker and notify the BANK of
the new qualified co-maker of the loan.

f. Assist in the implementation of the Program Guidelines’ rules and policies as well as terms and
conditions of the loan agreement and other documents signed by the borrower and/or co-maker.

g. Agree to continue the payroll deductions from the borrower’s payroll until full payment of the
loan obligation.

h. When required by the BANK, binds itself to act as surety for the salary loan granted to its
Officials and employees.

SECTION II. COVENANTS OF THE BANK

 The BANK covenants and agrees to provide the INSTITUTION (i) a copy of the document signed by
the borrower’s authorized personnel to deduct from his/her honorarium the monthly amortization scheduled;
and (ii) a list of INSITUTION’s employees and staffs whose loan application have been approved by the
BANK, stating among others, the amount of salary loan, the date it was granted, and the amortization
schedule.

SECTION III. OTHER CONDITIONS

A. CANCELLATION OF THE FACILITY. In the event that the INSTITUTION fails to remit to
the BANK any amount deducted from the borrower/ or co-maker, BANK may at its option to cancel the salary
loan facility granted to the INSTITUTION for its Officials and employees.

B. DETERMINATION OF ELIGIBILITY. Anything in this agreement to the contrary

notwithstanding, the determination of eligibility of the INSTITUTION and/or borrowers/co-makers under this
program shall be the sole prerogative of the BANK.

C. EFFECTIVITY. This agreement shall be effective from the date of the execution hereof and shall
remain in full force and effect not unless the loan has been fully paid or settled by the borrower’s and/or co-
makers. Loans granted to Brgy. Officials and Employees of the INSTITUION prior to the execution of this
document shall be automatically covered by this MOA. An Authority to Deduct shall have to be signed by the
borrower and/or co-maker conformed by the three (3) disbursing officers or authorized check signatories:
Brgy. Bookkeeper, Brgy. Treasurer and Brgy. Captain. Refusal to signed this required document shall give the
BANK authority to accelerate the loan and demand full settlement of the balance there

D. SUPPLEMENT/AMENDMENT. At any time and from time to time the parties hereto may execute
a supplement or amendment hereto for the purpose of adding provisions to or changing or eliminating
provisions of this agreement as may be mutually agreed upon.

IN WITNESS WHEREOF, the parties through their respective authorized representative have hereunto
signed this agreement this _____ day of________________ at Rizal, Kalinga

RURAL BANK OF RIZAL (K-A) INC. BLGU-SANTOR,RIZAL,KALINGA

(BANK) (INSTITUTION)
BY: BY:

NERISSA L. ORODIO JONATHAN S. PADIOS

Manager Brgy. Captain

ERLINDA R. SANTIAGO
Brgy. Treasurer

JEREMIANA J. MANUEL
Brgy. Bookkeeper

SIGNED IN THE PRESENCE OF:

DIVINA B. GAMMOOT ELMER A. MORALES

Loan Processing In-Charge Collection In-Charge
 ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES)

PROVINCE OF ------------------ --- )S.S
CITY/MUNICIPALITY ------------ )

At the above stated locality, on this _____ day of________________, me personally appeared:

Name ID/CTC No. Date & Place of Issue

NERISSA L. ORODIO ___________________ __________________________

JEREMIANA J. MANUEL ___________________ __________________________
JOSE REY B. JAMBARO II ___________________ __________________________
DANILO O. MANUEL ___________________ __________________________

Known to me to be the same persons who executed the foregoing instrument and acknowledged the
same to be their free and voluntary act and deed as well as those of the Banking Institution and
instrumentality of the Agency/Entity herein represented.

Said instruments refers to a Memorandum of Agreement consisting of three (3) pages, including this
page whereon the acknowledgement is written, signed by the parties and their witnesses on the signature
page hereof and initialled on the other pages and sealed with my notarial seal.

Doc. No. ______________ NOTARY PUBLIC

Page No.______________
Book No.______________
Series of:______________