POLICY

• This policy serves as guidelines for investing in and availing loans from the “Quickest coop”.
• GENERAL GUIDELINES
• The COOP shall be known as “ Quickest Coop”
• The Coop’ primary purpose is to lend out money to its members and member-guaranteed borrower.
• The Coop shall follow a calendar year cycle.  At the end of each cycle, the coop will distribute all investments plus earned interest to its members net of any unsettled loans and expenses. A new book will be open each calendar year.
• At the beginning of the year, the coop’s BOD shall nominate a Fund Manager who will handle the fund for the duration of one year.
• 4.1 The fund manager shall be entitled to receive 5% of the interest collected as his professional fees distributed quarterly together with the interest income distribution.
• 4.2 The fund manager shall be responsible in maintaining the coop’s record.
• 4.3 The fund manager shall be responsible in informing the BOT on the status of the Coop’s fund.
• 4.4 The fund manager shall be responsible in enforcing this policy without exception.
• MEMBERS
• The Coop shall have three types of members as follows:
• 1.1 Board of Trustees (BOT)  
• BOTs are the original contributors / founders of the Coop.
• 1.2 Regular Member (RM)
• Regular members are person coming from the accounting department who wants to place their excess money in the COOP for profit.  
• 1.3 Guest Member (GM)
• Guest members are non-accounting people who want to place their excess money in the COOP for profit.  They can either be an employee or person referred to by an employee.

• To qualify as RM and GM, approval of the BOT is a pre-requisite.

• Obligations of Members:
• 2.1 Members must maintain good credit standing with the COOP.
• 2.2 Members are prohibited at all times from using the name of the COOP in extending personal loan and profiting from them.  This is to avoid conflict of interest.
• Violation of the above will disqualify any member from investing in the COOP.
• INVESTING IN THE COOP
• BOT and RM are required to put in the initial investment of Pesos: Ten Thousand (10,000) at the end of each year which will serve as the seed money for the coop succeeding year’s operation. This also serves as the minimum non-withdrawable maintaining balance of the member in the coop.

• For additional fund requirements during the year the following investment collection scheme will be utilized

Monthly contribution from BOT and RM which is set at a minimum of Php Five Hundred (P 500) and maximum of Php Five Thousand (P5,000).

Capital Call

• Should the monthly investment of members become insufficient to fund the current month loan requirements, the fund manager will request for a capital call.  BOT and RM can infuse additional investment based on their current percentage of investment in the Coop.  If a member cannot put in his share of the requested capital; the unfunded amount can be given by the other BOT and RM who has available funds.

• GM can invest only if there is an unfunded amount needed which cannot be covered by the capital call made by the fund manager.  His initial investment shall be Php Ten Thousand which will be non-withdrawable until distribution of fund at year end.  Any additional investment infusion he wants to put in will depend on the need of the Coop.

• To maximize income, the following will be implemented:
1. Referral fee of 5% of total interest earned from the referral
• 4.2 If there are unutilized fund, all members will be required to bring in borrower.  The fund manager will announce the amount of his unutilized fund, if any.  The solicitation order requirement will be GM, RM, and BOD.  
• HOLDING PERIOD AND INTEREST INCOME COMPUTATION
• Interest income in the fund will be computed and distributed quarterly (January to March, April to June, July to September, and October to December) and will automatically rolled over to the principal unless an advise was given to the fund manager that the amount will be withdrawn.

• Investment withdrawal can only be made at end of each quarter after giving a month notice to the fund manager; otherwise any interest for the quarter will be forfeited.

• INVESTMENT WITHDRAWAL

• Any fund withdrawal requires a minimum notice of one month and subject to cash flow availability of the fund.

• For fund withdrawal request, the following conditions must be met:
1. The entire loan guaranteed by the member is in good standing.
2. If he has a loan guaranteed, he has to maintain his initial investment of P10,000
3. The credit is maintained. The member cannot withdraw his fund if his credit limit will not be maintained
• Example1:  member investment is P10,000   Amount of loan borrowed or guaranteed is P40,000
•                     The member cannot withdraw his investment; the credit limit will be distorted
• Example 2:  member investment is P10,000 .  Amount of loan borrowed is P10,000
• The member cannot withdraw his investment.  He has to maintain his initial investment since he has a loan guarantee
• Example 3: member investment is P25, 000. Amount of loan is P5,000
• The member can withdraw maximum of P15,000

• There will be 2 types of withdrawal as follows”
1. Partial withdrawal
• When amount withdrawn is 50% or less of the of the investor’s total investment at the time of the withdrawal.
1. Permanent withdrawal
• When the total amount withdrawn is more than 50% of his total investment at the time of the withdrawal.

• For partial withdrawal:
1. Made at the end of each quarter, the member receives his request without penalty.
2. Not made at the end of each quarter, the member forfeits his interest for the quarter.

• For permanent withdrawal:
1. Made at the end of each quarter, the member forfeits 50% of his total interest earned from the fund  
• 5.2 Not made at the end of each quarter, the member forfeits his interest earned for the quarter and 50% of his total interest earned from the fund.
• DISTRIBUTION OF FUNDS AND INCOME
• The fund will be distributed every December 15.

• Only member with good standing will be entitled to the fund distribution (interest or principal).

• Interest earned will be released first.  Return of principal investment follows based on available fund and % of investment.

• Should there be an unpaid loan that is not be covered by the investment of the investor and the guarantor, the amount will be shouldered by the investors (BOT, RM, and GM) based on their percentage of investments in the total fund.
• LOAN GRANT
• All BOD and RM are entitled to borrow maximum amount of PHP Thirty Thousand (P30,000) plus amount of his investment contribution.
• Example:  Investment contribution is P10, 000.  His maximum loanable amount is P40,000

• A GM who is an employee is entitled to borrow 50% of his investment plus amount of his investment contribution.
• Example: investment contribution is P10,000. His maximum loanable amount is P15,000

• A non employee GM can only borrow to the extent of his investment. He needs secure a guarantor in case he wants to borrow a higher amount.

• Loan releases will be on first come first serve basis.

  

• The Coop shall collect interest of 5% per month.  The minimum loan period is one month and maximum is 3 months.  

• Loan amortization should be made payable every 15th and 30th of the month. The amortization should be remitted to the fund manager without the need for collection.

• All loans shall be covered by a promissory note and all loans will be release using check payment.

• In case of delayed in payment, the coop shall collect penalty of 7.5% on of the unpaid amortization due per month. Penalty shall be computed per day of delay.

• To ensure maximum collection of the amount lend out, a guarantor will be required for the following:
1. Loan availment of BOT, RM, and  GM in excess of their credit limit
2. Loan extended to a third party borrower.

• By signing as the guarantor, he agreed that in case of non-payment, the amount will be collected from his investment.  He also warrants that should the amount borrowed exceed his investment, the amount will be settled from his personal funds, this is even if the guarantee was made as a favor for another investor only.