DMPI Employees & Community Credit Cooperative

                                     IMPLEMENTING GUIDELINES

LOT OR HOUSE & LOT LOAN

GUIDELINES:

1. This loan shall be called as LOT AND HOUSE & LOT LOAN.
2. The LOAN may be used for (we may expand this in the future);
3. Purchase of Lot only.
4. Purchase of an existing house and lot.
5. The loan amount shall be 500K up to 3M pesos.
6. The term of the LOAN and its corresponding interest shall be (table attached);
   1.      10 years @ 7% interest per annum diminishing balance
   2.      15 years @ 8% interest per annum diminishing balance
   3.      20 years @ 9% interest per annum diminishing balance.
7. The service fee for this loan shall be 1.5% of gross loan for 10 year term, 2% of gross loan for 15 year term and 2.5% for 20 year term.
8. The property subject of the loan shall be situated in places within the province of Misamis Oriental (Jasaan to Opol), Cagayan de Oro City and Bukidnon (up to Manolo Fortich)
9. The applicable term of loan for the member-borrower shall be based on his/her number of productive working years with DMPI until the age of mandatory retirement of 60 years old, which shall be at least 10 years upon approval of the loan.
10. Member-borrower must have the capacity to pay based on his/her latest 3 month’s payslip with DMPI (at least Php 10,000.00 net pay per month for a family of at least 4 members).
11. Member-borrower must have at least 50K in fixed deposit for loan of 500K to 1M and at least 100K fixed deposit for loan of 1.01M to 3M and a 20K pesos in a special savings deposit non-withdrawable during the entire duration of the loan.
12. Member-borrower shall be at-least 5 years employed with DMPI as regular employee.
13. Member-borrower shall agree to make as collateral the property subject of the loan in his/her name to the DMPI-ECCC duly annotated by the Register of Deeds. The title shall be deposited in the custody of the DMPI-ECCC until the loan is fully paid.
14. As an additional collateral, the member-borrower shall execute a note duly notarized that any remuneration with DMPI as a result of retirement, resignation or separation of employment from DMPI before full payment of the loan shall be paid in favor of the DMPI-ECCC up to the outstanding balance amount of the LOAN. If the funds could not satisfy the outstanding amount, the member-borrower shall pay the balance in full.
15. In case of default of payment of monthly amortization, a penalty of 1% shall be imposed on the uncollected amount and shall be collected on the next payment period. In the event of non-payment for six consecutive months the Coop shall execute foreclosure proceedings.
16. The member-borrower shall secure a Fire Insurance of the property subject of the loan which shall be valid year on until upon loan maturity.

The following requirements shall be submitted to the Loans Department for evaluation of the applicant’s LOT OR HOUSE & LOT LOAN:

1. Duly accomplished LOT OR HOUSE & LOT LOAN Application form.
2. Certified true copy of the latest Transfer Certificate of Title (TCT).

The title of the property subject of the LOAN shall be a clean title having no encumbrance whatsoever against any third party creditors.

3. Location plan and vicinity map of the property.
4. 5R colored pictures of the property, 1 front, 1 left, 1 right, 1 back, 3 inside of house.
5. Notarized Contract to Sell between member-borrower and seller. (optional)
6. Appraisal report of the property subject of loan by a licensed appraiser (meantime, the CRECOM shall act as the appraiser of the property).
7. Upon completion of all requirements, Crecom shall endorse for approval to the Coop Manager.

The following steps shall be taken upon approval of a LOT OR HOUSE & LOT LOAN.

1. DMPI-ECCC and the member-borrower shall execute a duly notarized Letter of Guaranty to the seller. A Letter of Guaranty is an agreement/contract to be issued by the DMPI-ECCC to the seller that the coop shall pay the seller upon satisfying the transfer of the latest title of the property in the member-borrower’s name and annotated in the title the loan in the name of DMPI-ECCC by the Register of Deeds.
2. The member-borrower buyer shall give the Letter of Guaranty to the seller, upon which, the seller shall cooperate with the buyer in facilitating the transfer of the title in the buyers name.
3. The COOP/member-borrower and the buyer shall execute a DEED OF ABSOLUTE SALE incorporating all conditions such as description of property and the price duly notarized.
4. The member-borrower/seller shall proceed to the BIR for payment of Capital Gains Tax and Documentary Stamps. The BIR shall issue Certificate Authorizing Registration.
5. Member-borrower/seller shall then proceed to Local Government Unit (LGU) for payment of Transfer Tax.
6. Member-borrower/seller shall proceed to Register of Deeds (RD) for transfer of title and annotation of mortgage.
7. Any expenses from the above procedures shall be borne out of the agreement between the buyer member and the seller.
8. Member-borrower/seller shall proceed to the LGU for Transfer of Tax Declaration.
9. Member-borrower shall submit to DMPI-ECCC all completed requirements for final validation by the Crecom.
10. Any other procedure/s not within these guidelines/steps but are deemed necessary for the completion of the sale shall become part of these procedures.
11. Crecom shall endorse for payment of the loan in the name of the seller.
12. Seller gets his/her payment and signs an acknowledgement receipt.
13. Member-borrower may now take actual possession of the property and start paying his/her monthly amortization.