The Cooperative Corner

Atty. Manuel C. Seguerra

Here are the updates on the BSP-DRB Credit Cooperative:

i) New/Amendments to Lending Policies -

Our Coop’s Board of Directors in its regular meeting on June 18, 2002, approved new and/or amendments to lending policies. These were adopted to serve our members better and to rationalize loans to new members. The policies are as follows:

Loan Type	Ceiling	Rate	Terms		No. of Co-makers/ Collateral		Approving Authority
Regular	Five times the paid-up capital or P200,000 (P100,000 for Coop members of 3 years or less) whichever is lower	13% p.a.	Installment payments thru salary deductions for 12 to 48 months provided net take home pay is not less than P2,000/month after deducting loan amortization		One co-maker for loans of P50,000 or less and two co-makers for loans of more than P50,000. A member shall be a co-maker to maximum of two loans		Credit Committee for loans up to P150,000 Board of Directors for loans of more than P150,000
Special	Same	15% p.a. (discounted for one year, with rebates for payments before maturity)	Lump sum payment for loans with maturity of up to one year or with maturity to coincide with the date of grant of economic assistance/other fringe benefits		One or two co-makers Assignment of benefits/ PDCs / withdrawal slips		Board of Directors regardless of amount
Back-to-back	Equal to the face value of CTD	1% over CTD rate (discounted)	Lump sum payment with maturity of up to one year/ same maturity dates-loan (s) & CTD(s)				Credit Committee
Real Estate (Loans exceeding P200,000 up to P250,000 to be secured by first mortgage on real estate security)	Five times the paid-up capital or P250,000 (P100,000 for Coop members of 3 years or less) whichever is lower	13% p.a.	Lump sum payment for loans with maturity of up to one year or installment payments thru salary deductions for a maximum of four years provided net take home pay is not less than P2,000/month after deducting loan amortization	One or two co-makers Duly registered REM		Board of Directors

Deductions:

a) Service fee of 2%

b) Fixed deposit of 3% to 5% or 1% to 3% for back-to-back loans.

c) MRI

Loan Ceiling:

The maximum aggregate loan that a member may avail is Two Hundred Fifty Thousand (P250,000) Pesos, excluding loan(s) secured by hold-out on time deposit(s).

ii) Authorized Share Capital

As approved at the annual General Assembly last January 22, 2002, the authorized share capital of the Coop has been increased from P2M to P20M or an addition of P18M. Also, the allocation of P15,300 as each member’s share of the required 25% subscription to the capital increase ( 25% x P18M = P4.5M/ no. of members) was approved.

It may be worthwhile to mention that the Coop’s present authorized share capital of P2M has been fully paid-up as of June 30, 2000. Members’ capital contributions after June 30, 2000 are treated as “Deposit for Capital Subscriptions”. These payments are to be deducted from the P15,300 allocated subscription for each member and the balance, if any, is the unpaid subscription. In this regard, the Board has set the deadline for payment on June 30, 2002. Last May 2002, the Coop has furnished each member with the Statement of Fixed Capital as of December 31, 2001.

Your Coop anticipates that all the members concerned will promptly settle the balance of their unpaid subscriptions. With your continued support, particularly through capital contributions and patronage, the sustained growth of our Cooperative is assured.