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 BY: GODOFREDO ZEPEDA

Head-Individual Lending 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 CTC NO. ISSUED ON/AT

DOLORES DE LA PEÑA 20576962 1/25/08 - ILOILO CITY

GODOFREDO ZEPEDA 20571207 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 : NONOY
MUNICIPALITY : ILOILO
PROVINCE : ILOILO

Authorized Rate Budget Year

Name Title of Position Per Annum
Josefina Hilado Brgy. Captain 4,161.00 49,932.00
Wenefredo Tyones Brgy. Kagawad 3,119.00 37,428.00
Herman Sianson Brgy. Kagawad 3,119.00 37,428.00
Jeffrey Francisco Brgy. Kagawad 3,119.00 37,428.00
Herichie Artiaga Brgy. Secretary 3,119.00 37,428.00
Marcelino Espeso Brgy. Treasurer 3,119.00 37,428.00
Jr.

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 POSITION
Josefina Hilado Punong Barangay
Wenefredo Tyones Brgy. Kagawad
Herman Sianson Brgy. Kagawad
Hermogenes Artiaga Sr. Brgy. Kagawad
Jeffrey Francisco Brgy. Kagawad
Jose Mario Quisto Brgy. Kagawad
Nilda Tan Brgy. Kagawad
Ferdinand Rubin Brgy. Kagawad
Arpole John Gonzales SK Chairman
Herichie Artiaga Brgy. Secretary
Marcelino Espeso Jr. 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 POSITION
Josefina Hilado Punong Barangay
Wenefredo Tyones Brgy. Kagawad
Herman Sianson Brgy. Kagawad
Hermogenes Artiaga Sr. Brgy. Kagawad
Jeffrey Francisco Brgy. Kagawad
Jose Mario Quisto Brgy. Kagawad
Nilda Tan Brgy. Kagawad
Ferdinand Rubin Brgy. Kagawad
Arpole John Gonzales SK Chairman
Herichie Artiaga Brgy. Secretary
Marcelino Espeso Jr. 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 POSITION
Josefina Hilado Punong Barangay
Wenefredo Tyones Brgy. Kagawad
Herman Sianson Brgy. Kagawad
Hermogenes Artiaga Sr. Brgy. Kagawad
Jeffrey Francisco Brgy. Kagawad
Jose Mario Quisto Brgy. Kagawad
Nilda Tan Brgy. Kagawad
Ferdinand Rubin Brgy. Kagawad
Arpole John Gonzales SK Chairman
Herichie Artiaga Brgy. Secretary
Marcelino Espeso Jr. 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 Position:
Andresito Jurilla Punong Barangay
Virgilio GUmban Brgy. Kagawad
Torchie Rose Escaniel Brgy. Kagawad
Jeanne Mi Chelle Hontoria Brgy. Kagawad
Alfredo Perez Brgy. Kagawad
Nove Marie Jalbuna Brgy. Kagawad
Jaime Janobas Brgy. Kagawad
Rene Mecha Brgy. Kagawad
Jaywardene Hontoria SK Chairman
Ruvylyn Nobleza Brgy. Secretary
Sante Presaldo 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 Position Amount

Andresito Jurilla Punong Barangay P 22,905.00

Virgilio GUmban Brgy. Kagawad P 3,900.00
Torchie Rose Escaniel Brgy. Kagawad P 3,900.00
Jeanne Mi Chelle Hontoria Brgy. Kagawad P 3,900.00
Alfredo Perez Brgy. Kagawad P 3,900.00
Nove Marie Jalbuna Brgy. Kagawad P 3,900.00
Jaime Janobas Brgy. Kagawad P 3,900.00
Rene Mecha Brgy. Kagawad P 3,900.00
Jaywardene Hontoria SK Chairman P 3,900.00
Ruvylyn Nobleza Brgy. Secretary P 4,400.00
Sante Presaldo Brgy. Treasurer 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 Sante Presaldo

Punong Barangay 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 Position

Andresito Jurilla Punong Barangay

Virgilio GUmban Brgy. Kagawad
Torchie Rose Escaniel Brgy. Kagawad
Jeanne Mi Chelle Hontoria Brgy. Kagawad
Alfredo Perez Brgy. Kagawad
Nove Marie Jalbuna Brgy. Kagawad
Jaime Janobas Brgy. Kagawad
Rene Mecha Brgy. Kagawad
Jaywardene Hontoria SK Chairman
Ruvylyn Nobleza Brgy. Secretary
Sante Presaldo 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