A Primer: BJMP Savings and Loan Association (BJMPSLAI) Inc.

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Definition of terms

SAVINGS AND LOAN ASSOCIATION

- A savings and loan association (or SLA), also known as a thrift bank, is a financial

institution that specializes in accepting savings and time deposits along with other capital that is

in their possession and extending loans.

- The overriding goal is to encourage savings and investment by common people and to

give them access to a financial intermediary that otherwise had not been open to them in the

past.

NON-STOCK, NON-PROFIT ASSOCIATION

- It shall mean a non-stock, non-profit corporation engaged in the business of accumulating the savings of its members and using such accumulations for loans to members to service the needs of households by providing short and long term financing.

- Association shall refer only to non-stock savings and loan associations organized under

the Revised Non-Stock Savings and Loan Association Act of 1997" Act and the Corporation Code of the Philippines

ORGANIZATION OF AN ASSOCIATION

- A group of at least five (5) but not more than fifteen (15) members of a well-defined group may form an Association. - The above group shall secure a license from the Monetary Board and register with the Securities and Exchange Commission (SEC). WELL-DEFINED GROUP

- shall consist of employees, officers, and directors of one company, including member-retirees; or any government employees belonging to the same department/branch/office, including member-retirees; and immediate members of the families (up to second degree of consanguinity or affinity) MEMBERS OF THE BOARD OF TRUSTEES J/DIR ROSENDO M DIAL J/CSUPT DIONY D MAMARIL J/CSUPT BENITO A DORIGO J/CSUPT SERAFIN P BARRETTO, JR. J/CSUPT GLORIA S NOCEDO (RET) J/SSUPT MICHAEL E VIDAMO, SR. J/SINSP ARNULFO P OBIAS LINE-UP OF OFFICERS Chairman J/DIR ROSENDO M. DIAL Vice Chairman J/CSUPT BENITO A DORIGO President J/CSUPT DIONY D. MAMARIL Corporate Secretary J/CSUPT GLORIA S NOCEDO (RET) Treasurer J/SSUPT ROMEO S ELISAN, JR. . Assistant Corporate Secretary J/SINSP JOE JAY P AREJOLA General Manager BENJAMIN P MADRASTO, JR.

APPLICATION

- The Application for Authority to Establish the SLAI with the Bangko Sentral ng Pilipinas (BSP) was accomplished and submitted in triplicate, on August 23, 2011.

- After several deliberation and meetings, the Monetary Board and the Office of the

Governor (BSP) through the Office of the Supervisory Policy Development, Bangko Sentral ng Pilipinas (BSP), reviewed, and approved our request, and issued the Authority to Register on January 13, 2012. Finally, the Securities and Exchange Commission (SEC) approved our incorporation on February 17, 2012. Please see Figure 1.

Figure 1

- Our official corporate address is on the Ground Floor, BJMP Building, BJMP NHQ Compound, 144 Mindanao Ave., Barangay Bahay Toro, Project 8, Quezon City. BJMPSLAI ELIGIBLE MEMBERSHIP

- Regular Members - All regular employees of the Bureau of Jail Management and Penology including member-retirees.

- Associate Members - All parents, legitimate spouse and legitimate children eighteen (18) years old and above of the Regular Members. They shall have the same privileges and responsibilities as the Regular Members but can neither vote nor be voted upon. CAPITAL CONTRIBUTIONS, SAVINGS AND TIME DEPOSITS

Initial capital contribution is ONE THOUSAND PESOS (₱1,000.00) Philippine currency shall be paid in full and shall not be withdrawable within the first three (3) years of membership, neither shall the same be withdrawable by a member who has an existing loan,.and the member will pay up the amount of FIVE HUNDRED PESOS (Ᵽ500.00) Philippine currency, as entrance/membership fee. (to cover the cost of BJMPSLAI ID and Passbook.)

- After admission, each member shall start making a monthly contribution of at least TWO HUNDRED PESOS (Ᵽ200.00) Philippine currency until it meets the required capital contribution of FIFTY THOUSAND PESOS (Ᵽ50,000.00).* *Note: (Ᵽ50,000.00 ÷ Ᵽ200.00 per month = 250 months or 20.8 years)

- Members shall participate in the profits of the Association on the basis of their capital contributions after the Association has set aside reserves as may be required by existing laws and regulations.

- Members may put up savings and time deposits which shall earn interest at such rates as may be set by the Board of Trustees, subject to existing laws and regulations.

- MEMBERSHIP IS VOLUNTARY.

- Upon completion of the Membership Form (see Figure 2), and Pledge of Membership Form (see Figure 3), the member shall fill the Automatic Deduction (ATD) Request Form, to deduct from their payroll the initial capital contribution and entrance/membership fee. (See Figure 4.) Figure 2 Figure 3

Figure 4

FREQUENTLY ASK QUESTIONS

WHY FORM AND ESTABLISH THE BJMPSLAI? - At present, BJMP employees has access to several Credit facilities, namely: 1. BJMP Multi-Purpose Cooperative (BJMP-MPC); 2. BJMP Mutual Benefit Association Inc. (BJMPMBAI); and 3. Armed Forces and Police Savings & Loan Association, Inc. (AFPSLAI),

WHAT IS BJMPSLAI?

The BJMPSLAI is a non-stock, non-profit savings and loan association for the BJMP. Its

main objective is to provide our BJMP personnel, uniformed and non-uniformed,

investment opportunities and immediate access to funds and help them cope with the

rising needs of daily living.

WHAT ARE THE TYPES OF BJMPSLAI MEMBERSHIP?

There are two types namely:

1) Regular Members 2) Associate Members

WHO CAN BE A MEMBER OF THE ASSOCIATION?

Membership to BJMPSLAI is open to all active, retired or resigned BJMPSLAI

officials or employees of the Bureau of Jail Management and Penology who are:

1. Permanent officials and employees of the Bureau of Jail Management and

Penology still in the active service.

2. Former officials and employees who have retired automatically or

optionally but have signified their intention to continue their membership

with the Association after their retirement.

3. Former members of BJMPSLAI who ceased to be members thereof after

fully withdrawing their total capital contributions, savings, or time deposits with the Association but have renewed their membership and

their application was accepted by the Board of Trustees.

4. Retirees who are not members of the Association while still in the active

service but decided to apply for membership after retirement.

5. Former appointive officials of the BJMP such as past Jail Director of the

BJMP, Deputy Directors, among others , who have signified in writing, their interest to become a member of BJMPSLAI, whose special

membership has been accepted by the Board of Trustees through a resolution.

HOW CAN ANYONE BECOME A MEMBER?

An applicant for membership should submit the following documents to the Association and pay the required membership fee and other charges

imposed by the Association:

A. For a New Member

1. A new applicant for membership shall submit the following:

a. Application for membership in the form prescribed by the Association

b. Latest Pay slip

c. Appointment papers in the BJMP

d. Certificate of Reporting for Duty by the Head of the unit where assigned

2. Two (2) pieces 1x1 ID pictures

3. Signature Card duly filled-up

4. Official Receipt evidencing payment of the Membership Fee of ₱500.00

for new members or ₱550.00 for re-membership or special membership.

a. ₱500.00 - New Member

b. ₱550.00 - Special Member

5. Payment for the initial capital contribution of ₱1,000.00 up to ₱50,000.00

B. A Retiree shall submit:

1. A letter to the Board of Trustees thru the General Manager, signifying his/her intention to continue his/her membership in the Association.

2. The documents required in nos. 1-5 above for new members if he/she is applying for the first time.

C. Applicants for special membership shall also submit the required

documents under "B"

CAN A RETIREE STILL CONTINUE TO BE A MEMBER OF BJMPSLAI?

A Retiree may continue his/her membership to BJMPSLAI for life after retirement as long as he/she communicates with BJMPSLAI his/her intention

to do so. The Association will send any retiring member, a reminder letter if

he/she wants to continue his/her membership or not. If no response is received within a six-month (6) period, the remaining balance of the

member’s Capital Contribution plus the savings account balance of said member, if any, shall be transferred to Dormant Account subsidiary records

(AP/CC).

At least a minimum capital contribution of ₱1,000.00 should be maintained by the retiree-member to continue his/her membership. The maximum

amount of Capital Contribution the retiree can invest is also ₱50,000.00 like any regular member.

WHAT ARE THE PRIVILEGES OF A RETIREE MEMBER?

A retiree can also enjoy the privilege of opening a savings account with BJMPSLAI aside from availing of the loans, if he/she has not yet opened any.

The minimum amount required to open an SA account is ₱100.00 which is also the minimum maintaining balance which cannot be withdrawn unless

the member closes his/her account. There is no maximum limit for this type

of account. Deposits can be made anytime, either to direct cash/check deposits or through monthly payroll deduction. The SA account presently

earns a tax free 3% interest rate.

The Retiree is also entitled to borrow up to the extent of the CC with the

Association without a need for a co-maker. However, the retiree-borrower can only withdraw the excess amount, if any, of his/her CC over the

outstanding loan balance. Payment of the monthly amortization shall be made directly to the BJMPSLAI cashier in cash or in check on or before the

due date or it can be deposited by the borrower to the Bank Account Number of the Association maintained with the Land Bank of the Philippines.

In case the Retiree fails to pay the monthly instalment on time, the

Association will charge the amount due against his/her CC after due notification.

HOW CAN ONE BECOME A BJMPSLAI MEMBER?

For Regular Members

Are those officers, uniformed personnel and civilian employees receiving salaries from

the BJMP; retired officers, personnel and retired civilian employees.

PROCEDURES FOR MEMBERSHIP: 1. A member applicant should personally appear and properly fill-up a Membership Form, indicate his/her classification and submit all the requirements pertaining to his classification of membership as stated in this policy to the Membership Clerk/ New accounts clerk for screening. 2. Upon completion and submission of all requirements, the Membership application form shall be forwarded to the Membership Officer or to the Approving Authority duly delegated by the Board of Trustees for approval. 3. Upon approval of the Membership Application, the new member shall be required to deposit a minimum non-withdrawable amount of One Thousand Pesos (₱1,000.00) capital contribution and to pay the membership fee and entrance fee of Five Hundred Pesos (₱500.00). Correspondingly, the BJMPSLAI shall issue a CapCon Account Passbook, and a membership ID Card. 4. Only One Account per Member Policy shall be strictly implemented under Capital Contribution and the name of the member shall become the account name of the CapCon Account. Joint accounts or And/or accounts for CapCon Deposits shall not be permitted to all members of legal age. However, minors (below 18 years of age) when accepted as Associate Members shall be allowed to have an In-Trust-For (ITF) as account names in their Capital contributions subject to membership requirements as stated in Section IV last item hereof. Regular Member Requirements

1. Original & Photocopy of BJMP ID or Appointment Order (CAD / Enlistment / Retirement) and any of the following: a. Driver’s License, b. BIR Tin Card / Philhealth ID c. NBI Clearance (Card) / Gun Permit d. Voter’s ID

2. 2 pcs (1x1) ID picture

For Associate Members Are those immediate members of the family of the regular member up to the 2nd degree of consanguinity or affinity. PROCEDURES FOR MEMBERSHIP: 1. A member applicant should personally appear and properly fill-up a Membership application, indicate his/her classification and submit all the requirements pertaining to his classification of membership as stated in this policy to the Membership Clerk/ New accounts clerk for screening. 2. Upon completion and submission of all requirements, the Membership application form shall be forwarded to the Membership Officer or to the Approving Authority duly delegated by the Board of Trustees for approval. 3. Upon approval of the Membership Application, the new member shall be required to deposit a minimum non-withdrawable amount of One Thousand Pesos (₱1,000.00) capital contribution and to pay a membership fee and entrance fee of Five Hundred Pesos (₱500.00). Correspondingly, the BJMPSLAI shall issue a CapCon Account Passbook, and a membership ID Card. 4. Only One Account Per Member Policy shall be strictly implemented under Capital Contribution and the name of the member shall become the account name of the CapCon Account. Joint accounts or And/Or accounts for CapCon Deposits shall not be permitted to all members of legal age. However, minors (below 18 years of age) when accepted as Associate Members shall be allowed to have an In-Trust-For (ITF) as account names in their Capital contributions subject to membership requirements.

Associate Member Requirements

For Spouse of Regular Member:

1. Signed endorsement letter of the Regular member

2. Original & Photocopy of PCG Dependent’s ID and any of the following:

a. Driver’s License,

b. SSS/GSIS ID

c. BIR TIN Card / Philhealth ID

d. NBI Clearance (Card) / Gun Permit, Voter’s ID

3. Marriage Certificate (NSO authenticated)

4. 2 pcs (1x1) ID picture

For Siblings (Brother or Sister), Children/Grandchildren, Adoptive Children of a

Regular Member (18 years old and above):

1. Signed endorsement letter of the Regular member

2. Original & Photocopy of PCG Dependent’s ID or any of the following:

a. Driver’s License,

b. SSS/GSIS ID

c. BIR TIN Card / Philhealth ID

d. Company / School ID

e. NBI Clearance (Card) / Gun Permit

f. Voter’s ID

3. Birth Certificate (NSO authenticated)

4. Adoption Papers (if Adoptive child)

5. Marriage Certificate (If married) (NSO authenticated)

6. Marriage Certificate of parents (if grandchild)

7. 2 pcs (1x1) ID picture

For Brother-in-law, Sister-in-law, Son-in-law or Daughter’s in law of a regular

member:

1. Signed endorsement letter of the Regular member

2. Original & Photocopy of any of the following:

a. Driver’s License,

b. SSS/GSIS ID

c. BIR TIN Card / Philhealth ID

d. Company ID

e. NBI Clearance (Card) / Gun Permit

f. Voter’s ID

3. Birth Certificate / Marriage Certificate (NSO authenticated)

4. 2 pcs ID picture (1 1x1 & 1 2 x2)

Note: For purposes of clarity, Brother-in-law and Sister-in-law shall herein refer to as the

husband or wife of a brother or sister of a REGULAR member

For Grandchildren of a Regular Member (below 18 years old):

1. Notarized written consent of the parents

2. Certificate of undertaking by the regular member

3. Birth Certificate (NSO authenticated)

4. 2 pcs ID picture (1 1x1 & 1 2 x2)

Honorary Members

Are regular employees of the Association and those persons whose membership was approved by the Board of Trustees.

PROCEDURES FOR MEMBERSHIP: 1. A member applicant should personally appear and properly fill-up a Membership Application, indicate his/her classification and submit all the requirements pertaining to his classification of membership as stated in this policy to the Membership Clerk/ New accounts clerk for screening. 2. Upon completion and submission of all requirements, the Membership application form shall be forwarded to the Membership Officer or to the Approving Authority duly delegated by the Board of Trustees for approval. 3. Upon approval of the Membership Application, the new member shall be required to deposit a minimum non-withdrawable amount of One Thousand Pesos (₱1,000.00) capital contribution and to pay a membership fee of One Hundred Pesos (₱500.00). Correspondingly, the BJMPSLAI shall issue a CapCon Account Passbook, and a membership ID Card. 4. Only One Account Per Member Policy shall be strictly implemented under Capital Contribution and the name of the member shall become the account name of the CapCon Account. Joint accounts or And/Or accounts for CapCon Deposits shall not be permitted to all members of legal age. However, minors (below 18 years of age) when accepted as Associate Members shall be allowed to have an In-Trust-For (ITF) as account names in their Capital contributions subject to membership requirements.

WHAT ARE THE REQUIREMENTS BEFORE A MEMBER CAN SECURE A

LOAN?

To be able to secure any loan from BJMPSLAI, the member:

• Must be a registered member of BJMPSLAI, whether still employed or retired.

• Must have a minimum capital of ₱3,000.00 or more at the time of the loan application.

• Net Take Home Pay (NTHP) must be ₱5,100.00 or more which include the allowances but net of the total monthly payroll deductions. The monthly

amortizations for the new and previous loans should already be included in the total amount deducted from the salary of the borrower.

• Has one or more qualified Co-Makers willing and capable of assuming the payment of the borrower’s debt in case of default of the latter.

• Borrower is not retirable from the bureau service before the maturity of

the loan he/she has applied for.

• Fifty percent (50%) of the existing loan applied for, if any, have been

paid.

• Has good track record in paying his/her previous loans with BJMPSLAI, if

any.

• Has no administrative/criminal case/s filed against him / her with the

BJMP/ the Office of the Ombudsman / or any other court/s unless covered by certain exceptions under existing policies of the Association.

HOW CAN A MEMBER SECURE A LOAN?

The borrower member must submit:

• A completely filled-up Loan Application, duly signed by the borrower and

the qualified Co-Makers.

• All supporting documents should be attached to the application form such

as:

a. Authenticated Xerox copies of the Pay slips of the Borrower and Co-makers/s.

b. Current BJMP ID of the Borrower and the Co-maker/s to be returned to the borrower after authentication.

c. Xerox copies of the ID’s duly authenticated by a BJMPSLAI personnel.

d. Borrower’s Leave Credits certified by the Personnel /Administrative

Division.

e. Clearance from the Internal Security or the Personnel Inquiry

Division.

f. Proof of Enrollment ( for Educational Loan only).

g. Proof of Medical Expenses (for Medical Loan only).

h. Community Tax Certificate (CTC or Cedula).

• Duly accomplished or updated signature card with picture of the member.

WHAT IS THE INITIAL BJMPSLAI LOAN PACKAGE?

As an introduction, especially for the new graduates - BJMP JO1 who will be

BJMPSLAI member can avail of a Salary Loan with a maximum amount of ₱30,000.00 based on his two (2) monthly income at 12% per annum with a

maximum term of 24 months, payable monthly.

SALARY LOAN Amount of Loan Ᵽ30,000.00 Interest per year 12%

Maximum Term 24 months Service Fee: 2% MRI Ᵽ300.00 Processing Fee: 1%

Note: Upon release of approve loan only the Doc. Stamp Fee, MRI Premium

and Notarial Fee shall be paid directly by borrower.

MRI Rate: Single Premium Rate (Ᵽ10.00/1000)

- As an comparative example: A BJMP employee applied for a loan of ₱30,000.00 for a term of two (2) years at 12% per annum, payable

monthly with a service fee of 2%, processing fee of 1% based on the loan

applied and Mortgage Redemption Insurance (MRI).

BJMPSLAI X - SLAI Y - SLAI Amount of Loan ₱30,000.00 ₱30,000.00 ₱30,000.00 Loan Period in years 2 2 2 Number of payments/year 12 12 12 Monthly payment ₱1,550.00 ₱1,575.00 ₱1,596.12 Net Loan Proceeds ₱29,700.00 ₱29,700.00 ₱29,490.00

A - COMBK B-COMBK C - COMBK Amount of Loan ₱30,000.00 ₱30,000.00 ₱30,000.00 Loan Period in years 2 2 2 Number of payments/year 12 12 12 Monthly payment ₱1,625.33 ₱1,629.89 ₱1,575.00 Net Loan Proceeds ₱24,350.00 ₱22,720.11 ₱27,114.67

WHAT IS THE MAXIMUM LOAN THAT I CAN AVAIL?

A BJMPSLAI member can avail of a Loan with a maximum amount of

equivalent to his twelve (12) monthly income plus the amount of his capital

contribution, but should have a Net Home Pay of ₱5,100.00 which will be

determined prior to the approval of the loan.

WHAT ARE THE REGULAR PAYMENT TERMS?

12, 18 and 24 monthly payment terms.

Your monthly amortization depends on the amount of money you would like

to loan, how long you would like to extend your payment terms and our

assessment of your loan application.

How much is the loan service and processing fee?

The service fee is two percent (2%) while the processing fee is one percent

(1%) of the loan Amount.

Is there an annual fee?

There is no annual fee.

How long does it take for my loan application to be processed?

Upon submission of your complete loan document requirements, please

expect results of your loan application within the day.

How much is the loan processing fee?

The loan-processing fee is 1% of Loan Amount or Ᵽ1,500.00 whichever is applicable.

Our BJMPSLAI Loan Officer will confirm this with you prior to the approval of your loan.

How much is the loan Documentary Stamp fee?

Documentary Stamp fee - Ᵽ1.00 for every Ᵽ200.00 Approved Loan Amount or fraction

thereof (to be deducted from the approved loan amount)

Is there an annual fee?

There is no annual fee.

Can I pre-terminate my loan at any time?

You may pre-terminate your loan anytime. You will only need to pay the outstanding

principal balance plus a minimum closure handling fee of Ᵽ2,500.00.

How long does it take for my loan application to be processed?

Upon submission of your complete loan document requirements, please

expect results of your loan application within the day.

How do I receive my loan proceeds?

You will receive your loan proceeds through cheque or through your Land

Bank of the Philippine, ATM.

Any Member can avail of the following loans:

Types of Loans and Interest Rates

Type of Loan Loanable Amount Interest Rate

CONSUMPTION Php 10,001.00 - 150,000.00 14% - One (1) Year 28% - Two (2) Years

EDUCATIONAL Php 20,000.00 11% - One (1) Year

SALARY/EMERGENCY Php 10,000.00 9% - One (1) Year

MEDICAL/HEALTH CARD Php 20,000.00 9% - One (1) Year

Note: All of the above loans are renewable provided that thirty percent (30%) of it has already been paid at the time of its renewal.

WHAT IS A REGULAR SAVINGS DEPOSIT (SD) ACCOUNT?

The Association adopted a Savings Deposit Account System with a Passbook and implemented it thru Office Order No. 01-06 which started last May of

2006.

The amount required to open an account, which is also the minimum

maintaining balance, is ₱100.00. Deposits may be made in cash or check to the BJMPSLAI Teller from 9:00 A.M. to 12:00 noon and from 1:00 P.M. to

3:00 P.M. in the afternoon. It can also be made thru payroll deduction every month upon written request of the member concerned. There is no minimum

nor maximum limit for deposits.

Any balance of the savings deposit account is automatically converted into

capital contribution at the beginning of every dividend cut-off date as long as the member’s total CC has not reached the maximum amount of

₱50,000.00. The member has to submit to BJMPSLAI, a duly signed Authorization letter in the prescribed form, as required under BSP

Regulations before any transfer can be made.

HOW CAN A MEMBER WITHDRAW FROM A SAVINGS DEPOSIT ACCOUNT?

Cash withdrawals from the Savings Deposit (SD) account is currently limited to ₱1,000.00 maximum per day. They are made at the BJMPSLAI office at

the Ground Floor BJMP Building at the same time as indicated above for deposits. No cash withdrawals are allowed without the properly filled

withdrawal slip and the presentation of the Passbook.

If the member desires to withdraw more than ₱1,000.00 from his/her savings account deposits, he/she has to fill-up a withdrawal form prescribed

by the Association. Such withdrawal are issued only checks.

All transactions involving deposits and withdrawals from the member’s

Savings Deposits are always posted in the Passbook. These transactions are likewise recorded in the member’s individual subsidiary ledger kept by

BJMPSLAI.

Updating of the Savings Deposit Passbook is made only when the Passbook

is presented to BJMPSLAI any day during office hours.

WHAT ARE THE ADVANTAGES OF THE REGULAR SAVINGS DEPOSIT ACCOUNT?

• Tax exempt interest based on prevailing bank rates.

• Current BJMPSLAI savings deposit interest rate is 3% per annum subject to change anytime by the Board of Trustees depending on the prevailing

bank rates in the market.

• Interest are computed monthly but credited to the Member’s Individual

Ledger every end of the quarter.

• The Interest is Tax Exempt under RA 8367

• Your savings continues to grow thru the passbook system.

HOW MUCH CAN A MEMBER DEPOSIT AS CAPITAL CONTRIBUTION?

A minimum capital contribution of One Thousand Pesos (₱1,000.00) is

required to be deposited by a member. A member can deposit any amount, however, it should not exceed the maximum limit of Fifty Thousand Pesos

(₱50,000.00). It can be paid thru direct cash or check payment to the BJMPSLAI cashier.

Any member whose capital contribution (CC) is not yet over the maximum

limit of ₱50,000.00 may continue to add to his capital contribution (CC) in installment thru payroll deduction of ₱200.00/ month or more until the

maximum limit is reached. However, the amount deducted from the

member’s monthly payroll shall be first recorded as saving deposits upon its remittance to BJMPSLAI. It shall be posted in the member’s savings account

subsidiary ledger and accumulated until it is transferred to CC subsidiary at the dividend cut-off date.

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