July 18, 2011 as approved by the

Cooperative Development Authority

A cooperative an autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve their social, economic, and cultural needs and aspirations by making equitable contributions to the capital required, patronizing their products and services and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles.

•The main benefit is economic since members get a share of the

cooperative’s net surplus by patronizing its services. A certain % of the

net surplus is returned to the members after a period of one year usually

during the annual general assembly. It is called patronage refund.

•Patronage refund shall be distributed to the members in proportion to

their patronage to the services of the cooperative. The distribution shall

be in accordance with their cooperative policies based on the

cooperative law, the RA 9520. Through the patronage refund, members

are actually saving while using the services of the cooperative.

•Those who do not patronize the services of the cooperative are not

entitled to patronage refund, only the interest on their share capital

invested in the cooperative.

That the objectives and purposes for which this cooperative is formed are:

1.To encourage thrift and savings mobilization among the members for capital formation;

2.To create funds in order to grant loans for productive and providential purposes to its members;

3.To promote the cooperative as a way of life for improving the social and economic well-being of

the people;

4.To undertake other activities for the effective and efficient implementation of the provisions of

the Cooperative Code.

5.To deposit operational fund to any commercial or cooperative banks and gain interest based on

the current prevailing interest rates

6.To invest any excess, unutilized funds including the General Reserved Fund in any gainful

investment sites such as but not limited to Commercial Banks, Cooperatives, Mutual Funds,

Government Guaranteed Placements like Treasury Bills, Special Deposit Accounts, etc.

7. To provide members with services such as bills paymentcell phone loading, booking

and ticketing, easy access to quality medicines and such other services that

members might need in the future.

4

5

•It serves as the training ground for its members in simple business operation, democratic leadership and responsible citizenship.

•It offers opportunities to its member’s potential capabilities in productive purposes which may redound to their material benefits and progress.

•It teaches its members self-discipline, self-reliance and other desirable attitudes, which make every member a better individual and a better member of society.

6

GENERAL ASSEMBLY

ELECTION COMMITTEE

AUDIT COMMITTEE BOARD OF DIRECTORS

SECRETARY

TREASURER

MED-CON COMMITTEE

ETHICS COMMITTEE

CREDIT COMMITTEE

TRAINING & EDUC. COMMITTEE

MANAGEMENT STAFF

7

Duties and Responsibilities of Committees:

Election Committee Implement election rules and guidelines duly approved by the General/Representative

Assembly.

Audit Committee Review continuously and periodically the books of account and other financial records to

ensure that these are in accordance with the cooperative principles and generally accepted

accounting procedures.

Mediation and Conciliation Committee Formulate and develop the Program and ensure that it is properly implemented.

Ethics Committee Develop Code of Governance and Ethical Standards to be observed by the members, officers

and employees of the cooperative subject to the approval of the Board of Directors and

ratification of the General/Representative Assembly.

Credit Committee Have the power to review all loan requests, determine whether or not a given loan would

benefit the applicant, and whether or not the security offered is sufficient and the terms

appropriates;

(NOTE: Election and Audit committee are elected by members while the rest are

appointed by BOD’s)

8

General Assembly (ADEMC Members)

Election Committee Audit Committee

Jess Gadugdug Member

Annie Hernandez

Member

Ethics Committee Education & Training Credit Committee Conciliation & Mediation

Operation Team

Carmi Rivera Staff

Leny Abanes Staff

Rhoda Gorospe Chairperson Raymond Tana

Chairperson

Franklin Cadavicio Secretary

Lota Reyes Chairperson

Jane Aguila Treasurer

Edwin Perez Vice Chairperson

Carrie Vallespin Vice Chairperson

Karell Aquino Member

Leigh Perez Secretary

Jhun Bayrante Member

Froilan Beratio Chairperson

Dona Cabrera Member

Jojo Caranto Member

Ferdinand Concepcion

Member

Dang Salcedo Member

Evelyn Davila Member

Maricel De Asis Secretary

Ederlyn Guleng Secretary

Tony Alinea Chairperson

Arnel Barongan Member

Jericho Tonelada

Vice Chairperson

Rocky Casas Secretary

Bong Pimentel Chairperson

Gina Cabral Secretary

Lyndon DelaPaz

Vice Chairperson

Betzy Tagle Supervisor

Ludy Villamin Staff

Board of Directors

Louie Habitan Gen. Mgr.

Enero Policarpio Vice Chairperson

Mercy Meriales Member

Lina Abad Chairperson

Rolly Tarra Vice Chairperson

Lolit Catarig Vice Chairperson

Reggie Zarzuela Secretary

Tess Vaenzuela Treasurer

9

Duties and Responsibilities of a Member a) Pay the installment of his share capital subscription as it falls due and to participate in the capital build-up and savings mobilization of the Cooperative;

b) Patronize the Cooperative’s businesses and services;

c) Participate in the membership education programs;

d) Attend and participate in the deliberation of all matters taken during general assembly meetings;

e) Observe and obey all lawful orders, decisions rules and regulations adopted by the Board of Directors and the general assembly; and

f) Promote the goals and objectives of the Cooperative, the success of its business, the welfare of its members and the cooperative movement in general.

10

Rights of a Regular Member Entitled to Vote. A member entitled to vote shall have the following rights:

a)Participate and vote on all matters deliberated upon during general assembly meetings;

b)Seek any elective or appointive position, subject to the provisions of this By-laws and the Philippines Cooperative Code of 2008;

c)Avail himself of the services of the Cooperative, subject to certain conditions as may be prescribed by the Board of Directors;

d)Inspect and examine the books of accounts, the minutes books, the share register, and other records of the Cooperative during office hours;

e)Participate in the continuing education and other training programs of the cooperative; and

f)Such other rights and privileges as may be provided by the General Assembly.

11

Withdrawal of a Member: A member may, for any reason, withdraw his membership from the Cooperative

by giving a written notice to the Board of Directors at least thirty (30) days prior

the effectivity date of his termination. However, no member shall be allowed to

withdraw or terminate his membership during any period in which he has any

pending obligation with the Cooperative.

Expulsion of a Member:

A member may be terminated by a vote of the majority of all the members of the

Board of Directors for any of the following causes:

a)When he has not patronized any of the services of the Cooperative for an

unreasonable period of time as may be previously determined by the Board of

Directors;

b)When he has continuously failed to comply with his obligations;

c)When he has violated any provision of this By-laws and the rules promulgated

by the Cooperative; and

d)For any act or omission injurious or prejudicial to the interest or

the welfare of the Cooperative.

12

SLF – SINGLE LOAN FACILITY

Category ADI

Tenure

Capital Share

Limit

WHICHEVER IS LOWER

Payment Term Loanable Amount

Limit

Capacity-To-Pay

Limit

SLFCat1

6 mos.

to below 5

yrs.

1,000 to 25,000 CS x 2

Take Home Pay =

40% Basic Pay

1,000 to 1,000,000 = 1

year or 2 years or 3

years

25,001 and up CS + 25,000

SLFCat2

5 yrs.

to below

10 yrs.

1,000 to 50,000 CS x 2

50,001 and up CS + 50,000

SLFCat3 10 yrs. and

above

CAPITAL SHARE x 3 up to 1 million

pesos only.

Take Home Pay =

40% Basic Pay

1,000 to 1,000,000 = 1

year or 2 years or 3

years or 4 years

13

EXPRESS LOAN

Special Express Loan is offered to members with insufficient capacity-to-pay in

the amount of Php5,000.00 payable in 6 months. PROVIDED, that the take

home pay is not less than ten percent (10%) of the basic pay after the

deduction of Special Express Loan.

14

COMPUTER LOAN

Terms Interest Service Fee

1 Year to pay 0% 1%

2 Years to pay 9% 2%

COD 0% 2%

15

ST. PETER PLAN LOAN

Plans

1st Year Principal & Amortization* 2nd to 5th Year Principal &

Amort.**

Principal Semi-Mo.

Amort.

Principal Semi-Mo.

Amort.

St. Francis 6,840.00 285.00 7,592.40 316.35

St. Paul 10,000.00 416.67 11,100.00 462.50

St. John 22,000.00 916.67 24,420.00 1,017.50

St. James 11,500.00 479.17 12,765.00 531.88

St. Jude 16,500.00 687.50 18,315.00 763.13

16

OTHER ADEMC BUSINESSES

17

18

Patronage Refund and Interest on Share Capital

Definition of terms: Patronage Refund - shall refer to the amount returned to individual members who patronize the goods and services of the cooperative in proportion to their individual patronage. Interest on Share Capital - Interest on Share Capital shall not exceed the Rate of Return on Investment. Total Average Share Month - shall refer to the sum total of the average share month, which is determined by adding the monthly ending balances of the member’s share capital and dividing the sum by twelve (12) months.

19

All payments of interest and patronage refund must be made on the annual general assembly or such other date after the calendar year as may be determined by the Board of Directors.

Total Patronage Refund to be returned to individual members who patronize the goods and services shall not be less than 30% but not more than 66.67%.

Interest on share capital shall not be less than 33.33% but not more than 70%.

Patronage Refund for credit services = 50% of the allocation or 50% of the interest paid for loans whichever is lower.

Allocation of Patronage Refund for other services shall be determined by the Board of Directors.

20

Statutory Reserve Fund

Reserve Fund – Ten percent (10%) of the net surplus. The reserve fund shall be used

for the stability of the Cooperative and to meet net losses in its operations.

Education and Training Fund – Five percent (5%) of the net surplus. Half of the

amount allocated to the education and training fund may be spent by the cooperative

for education and training purposes; while the other half may be remitted to a union or

federation of which the cooperative is a member.

Community Development Fund – Three percent (3%) shall be used for projects and

activities that will benefit the community where the cooperative operates.

Optional Fund – One percent (1%) shall be set aside for Optional Fund for land and

building fund, and any other necessary expenses

21

SAMPLE COMPUTATION OF INTEREST ON CAPITAL OR DIVIDEND

Month ACCUMULATED CS BALANCE AVERAGE SHARE

January 79,328,813.72 / 12 6,610,734.48

February 80,610,376.61 / 12 6,717,531.38

March 81,858,510.54 / 12 6,821,542.55

April 83,144,889.19 / 12 6,928,740.77

May 85,064,788.06 / 12 7,088,732.34

June 86,400,348.94 / 12 7,200,029.08

July 87,237,043.54 / 12 7,269,753.63

August 88,649,816.28 / 12 7,387,484.69

September 89,638,069.41 / 12 7,469,839.12

October 90,688,130.23 / 12 7,557,344.19

November 91,139,504.90 / 12 7,594,958.74

December 92,407,271.01 / 12 7,700,605.92

TOTAL AVERAGE SHARE 86,347,296.87

TOTAL EFFECTIVE SHARE @ P20/SHARE 4,317,364.84

Patronage Refund for credit services = 50% of the allocation and the other 50% is for Interest on

share capital

Allocation of Patronage Refund for other services shall be determined by the Board of Directors.

22

Net Income: 12,559,634.80

Less Appropriations:

General Reserved Fund (10% x NI) 1,255,963.48

Education & Training (5% x NI) 627,981.74

Land & Building Fund (1% x NI) 125,596.35

Officers Bonus Payable (2% x NI) 251,192.70

2,260,734.26

Net Income To Be Distributed to Members 10,298,900.54

Allocations:

Patronage Refund (50% of net income to be distributed to members) 5,149,450.27

Dividend (50% of net income to be distributed to members) 5,149,450.27

10,298,900.54

Dividends Per Share ( 5,149,450.27 / 4,317,372.27 shares) 1.192

23

Month ACCUMULATED CS BALANCE AVERAGE SHARE

January 1,000.00 / 12 83.33

February 2,000.00 / 12 166.67

March 3,000.00 / 12 250.00

April 4,000.00 / 12 333.33

May 5,000.00 / 12 416.67

June 6,000.00 / 12 500.00

July 7,000.00 / 12 583.33

August 8,000.00 / 12 666.67

September 9,000.00 / 12 750.00

October 10,000.00 / 12 833.33

November 11,000.00 / 12 916.67

December 12,000.00 / 12 1,000.00

TOTAL AVERAGE SHARE 6,500.00

TOTAL EFFECTIVE SHARE @ P20/SHARE 325.00

Dividend (1.192 X 325 eff. Share) 387.40

Patronage Refund:

SLF Principal amount of P50,000.00 - interest rate = 9%

Interest from Loan = 4,500.00

Term - 12 months X 50%

Patronage Refund 2,250.00

Total Dividend and Patronage Refund due to Member 2,637.40

(Note: Patronage Refund may be vary depends on the Income)

24

Notes: • Re-structure is allowed for Express loan and SLF after 25% payment deduction

from the system. • Members can fully pay the remaining loan balance for Express loan, SLF ,

Computers loan, St. Peter Plan. • Submission of loan applications and release of loans must be in the following

schedules:

Loans

Date of Submission of Loan

Applications Date of Processing of Loans

Date of Releasing of Loans Thru

Check or ATM

SLF and EL Within the 1st working day On the 2nd working day On the 3rd working day

25

Notes:

Service Fee

1% for Express loan

2% for SLF

Membership Fee

P20 for new members

P100 for re-members and Initial Share of P200

Bereavement Assistance – P10 per deceased immediate family members

and siblings. In-laws not allowed.

2K – from COOP for non member

26