FICCO 48th Office Opens in Ozamiz City

Blessings of the motorcycle for the Ozamiz operation. With FICCO Maranding Manager Alex Ruel Manuel and CEO Vicente B Rana

FICCO Chairman Isagani B. Daba and FICCO Bank BOD Member Dir Tim Ruben

MotorcadeAfter the motorcade

FIRST COMMUNITY COOP BANK

The First Community Cooperative Bank (FICCO Bank) of Misamis Occidental is already added to the Wikipedia under the list of banks in the Philippines. If you click on the link go to the Misamis Occidental and see the FICCO written second.

However, upon clicking the link to the article on the Wiki nothing can be found. It says Wikipedia does not have exact article with the exact name.

Cooperative Performance Annual Report Form (CAPR)

I have notice a dead link on the Cooperative Development Authority (CDA) website page on the CAPR Form. I am posting a link to my google docs where cooperators may be able to download the form since it is the last quarter of the year and before we know it we will be required bythe CDA to submit annual reports that include the CAPR.

Anybody interested may download it from here, just click this link.

RMC 57-2009 Stop Issuing Tax Assessments to Coops

Secretary Gary B. Teves signed the RMC 57-2009 dated October 5, 2009 directing the BIR to stop issuing tax assessments to cooperatives duly registered with the CDA based on the old cooperative law.

Here's is the image file of the RMC 57-2009.Here's also a link to my google docs where you can get the entire file: Click Here.

Additionally you may get a copy of Coop Code of 2008 here.

Don't forget to subscribe to my email list and get coop updates straight to your email

Enter your email address:

How to become a member in good standing?

Aiming to become a member in good standing (MIGS) is a process. It is not an overnight sensation that some people ask to shorten the process begging managers of FICCO to grant them easy no sweat short cuts (warning). Thus, theres really no cutting corners for FICCO's MIGS process. When you are evaluated a Class A or a member in good standing at FICCO you should be proud of it because you earned it.

Now lets go back to the basic question. How does one become a member in good standing?

A member becomes a member in good standing when he complies the following condition:
Patronize FICCO services
- save/deposit regularly
- borrow wisely
- pay loans promptly
Participate FICCO activities
- attend General assembly
- attend coop anniversary (When members are invited to attend)
- attend coop month (When members are invited to attend)
Promote/sell FICCO
- recruit members
- remind lost/delinquent members

FICCO MAF Services

So what do a member expect from the Mutual Aid Fund of FICCO? Here's a list of them

• Hospitalization Assistance
• Maternal Care
• Death Aid
• Savings Protection
• Loan Protection

• Hospitalization Assistance

Member is entitled to a P700 per day maximum of 5 days in a year. The requirements are only (1) Medical Certificate and (2) Hospital billing.

This benefit is not automatic members are urged to enroll before they are covered.

• Maternal Care

For women members of FICCO. They are required to submit a negative pregnancy test (over and above the normal requirement) result before they can enroll under the maternal care.

• Death Aid

Death Aid is a benefit upon death by a member.

• Savings Protection

THis is used to protect the deposits of the members.

• Loan Protection

This is offered to protect the loans of the member.

FICCO Organizational Structure

This is the First Community Cooperative (FICCO) organizational structure.

How to Save?

The pinoy's savings habit on a scale of 1 to 10, (10 being the highest) may only have a rating of 2. Meaning 2 out of 10 Filipinos save. Our mentality about savings is manifested by this equation:

Income minus Expense = Savings

A friend of mine even joke about this and said "oh the equation is wrong because the latest survey suggest that pinoy's savings habit is rated -1 (negative one) or an equation of Income - expense = Overdraft". Sad but true, I mean reality bites we have more to spend than to save. My question is - Is that really the reason why we cannot save? more to spend than to save? On the other hand others would say, "Yes we have save" but we withdraw it 2 days after every deposit. This is just the same as no savings at all.

The existence of cooperatives gives us hope to educate the members about personal finance. The habit of savings, frugality and thrift. lets educate more people, evangelize them with the cooperative principles, lets bring the light to them, make them aware that savings equation adopted by the cooperatives is this:

Income minus Savings = Expense

The trick is to do this little by little or a few amounts allocated every pay day until it becomes a habit. The only struggle is to begin and later it becomes a regular practice and will be very easy for one to comply.

What is the Obligation of the Comaker?

By deifinition Co-maker means one of two or more persons who sign an instrument to indicate a promise to pay a financial obligation. Any co-maker may be sued for the entire amount of the indebtedness, although a co-maker who is forced to pay more than his or her share may seek contribution from the other co-makers.

The co-maker has an obligation as if he is the principal borrower. While FICCO exerts every effort to collect from the principal borrower, if the principal borrower cannot pay his loan, FICCO can run after the co-maker. Also, while FICCO is pursuing collection from the principal borrower, the co-maker, in the event he applies for a loan, is obligated to pay certain amount of the principal due including interest before his own loan is released or if he agrees, the delinquent loan will be deducted from his loan proceeds.

It is advise that before a member co makes a loan be sure you understand thoroughly your obligation in case of dafult by the principal borrower.

FICCO Loan Processing Procedure

Steps in Loan Application :

1. Member- borrowers shall obtain a loan application form from the FICCO office where they are members.


2. Loan applications must be properly accomplished. Members must secure all the requirements needed before the application is accepted.

Since FICCO have different types of loans according to the needs of its members, some of its loan requirements differ depending on the type of loan being requested, viz:

i. For Regular loans, Housing Related loans & Commercial loans

• Certificate of Employment/ Service record for employed members or Business Permit or DTI Certificate for business men


• Pay slip (last 3 months prior to application)


• Water and electric bill receipt (last 3 months prior to application)


• Income Tax Return (previous year- photocopy)


• Certificate of ownership of applications or OR/CR of motor vehicle or Original Title, Tax Declaration, Tax Clearance (Current year), Sketch plan and location plan for loans that require collateral.


• Chattel mortgage or Real Estate Mortgage form


• One-year bank statement or bank certificate for members who wished to use PDC’s as security.




• For Financing Loans




• Numbers 1, 2, 3, 4 & 6 of letter i.


• Quotation from reliable stores of the member’s choice

iii. For Educational Loans

• Numbers 1, 2, & 3 of letter i. Assuming member has no other loans (Current year)


• Certification from school where their dependents are currently enrolled indicating the amount of school fees or assessment.

iv. For Medical Loans

• Numbers 1, 2 & 3 of letter i. Assuming member has no other loans (Current year)


• Medical or Doctor’s certificate


• Drug prescription with corresponding value of the medicine

1. Once accomplished, the loan application shall be submitted to the Loans Clerk/ C.I./ Loans Officer for initial evaluation as to the completeness of the application including updating of data in the computer.


2. After scrutinizing the loan documents, the Loans Clerk/ C.I./ Loans Officer shall fill-out a Pre-Evaluation Form indicating all information such as: Monthly income, Monthly expenses and the disposable monthly income of the borrower. This Pre-Evaluation Form must be signed/ conformed by the borrower. The Loans Clerk/ C.I./ Loans Officer shall record the application on a logbook indicating the date and time of receipt.


3. The submission of loan applications must have a cut-off date to be able to give time for background and collateral inspection.


4. After the cut-off period, the C.I. must verify all the information stated by the borrower in the loan application, the member’s deposits as well as the signatures of the loaner, the spouse and co-makers. CI/Appraisers is prohibited from conducting appraisals for member borrowers who are their relatives up to 4 th civil degree by consanguinity or affinity.


5. After establishing the accuracy of the data supplied by the member, the C.I. shall conduct actual inspection on the residence and make background checks on the member using the ‘5 C’s of credit’ scheme. An inspection fee of P 100.00 shall be 50 KMS P 300.00.


6. The C. I. shall be responsible in making a written report after the credit investigation. This report will be the basis of the final evaluation by the Chief Loans/Manager and is crucial in the approval and/or disapproval of the loan application.


7. When the C.I. has finished preparing all the Credit Investigation Reports (CIR), The Chattel Inspection/ Real Estate Inspection Reports (CI/REIR) and the Membership Information Reports (MIR), he will then submit these documents together with loan applications to the Chief Loans or the Manager who in turn, will make endorsements and recommendations to the Credit Committee.


8. Members will then be required to attend a one & a half to two-hour briefing of the basic principles and policies of FICCO. Class A1 and A may attain loan briefing once a year.


9. After the briefing, a personal interview shall be conducted by the Credit Committee who will make the Final approval or disapproval of the loan. Proxies will not be allowed during briefings and interviews. Releases of approved loans shall be subject to availability of funds. The credit committee may require the submission of income tax return from the borrowers for verification purposes. Loans approved or disapproved by the credit committee shall contain the following:

a.) Signatures of the approving members by at least two (2) credit committee;

b.) Date of approval;

c.) A notation “APPROVED” “DISAPPROVED” shall appear in the loan application;

d.) Approved loans shall be filed properly in secured vaults immediately after its release together with all necessary supporting documents.

1. Approved or disapproved loan applications shall be returned to the Loans Clerk/ C.I./ Loans Officer for filing.


2. The Loans Clerk/ C.I./ Loans Officer shall type/ prepare documents such as; CM Form & REM Form, if applicable, and shall affix his signature on the papers together with another FICCO employee to act as witnesses to the signing of the documents, after which, the Manager affix his signature.


3. The FICCO Legal Counsel will notarize all the documents. After the notarization, the Documentary Clerk will bring the documents to the Bureau of Internal Revenue (BIR) and pay appropriate Documentation fees as well as the registration with the Registry of Deeds (ROD). The member shall be asked to pay for the payments to the BIR & ROD in cash aside from the processing fee of P 100.00 but shall not exceed P 500.00 & notarial of P 100.00 per loan document, which will be deducted from the member’s loan proceeds.


4. After the documents have been properly registered with the ROD, the same shall be returned to the FICCO office pending final release of the loan.


5. Final release of the loan will be after the registration of the ROD, in case of Real Estate Mortgage (REM) or Chattel Mortgage (CM) for appliances. For Chattel Mortgage on motor vehicles, the final release shall be after the annotation of the “encumbered to FICCO” by the Land Transportation Office (LTO).


6. The Loans Clerk/ C.I./ Loans Officer shall prepare check vouchers for each of the loan applicants.


7. The Accountant/ Bookkeeper or the Chief Loans/ Loan Analyst, shall verify all the entries in the check vouchers, loan applications and the loan disclosure and shall sign the checks for loans of Two Hundred Thousand Pesos (P 200,000.00) and below and shall be countersigned by the Manager. The Manager shall sign for loans above P 200,000.00 countersigned by the Treasurer or the member of the Board of Directors assigned for the cluster or in their absence, the General Manager/ CEO or the Manager of the nearest FICCO branch shall act as counter signatory.


8. During the release, the Loans Clerk/ C.I./ Loans Officer or Manager shall let the member sign on a logbook indicating the name of the borrower, the type of loan, amount of release, check numbers and the date of release as well as the Check Vouchers and the Loan Disclosure. A copy of the Loan Disclosure, Promissory Note and the Amortization Schedule shall be given to the borrower.


9. If the member-borrower cannot come personally because of obvious reasons, a written authority signed by the member-borrower indicating the reason why he/she cannot personally come and the person he/she is authorizing. The check proceeds of the loan maybe release but it shall only be encashed by the member-borrower. In some cases where the borrower has informed the office before the preparation of the checks and check vouchers, where a Special Power of attorney (SPA) has been submitted, the office may opt to include the name of the authorized person.


10. After the release, the Loans Clerk/ C.I. shall file all the loan documents on a safe or steel cabinet in an orderly manner. Collateral documents such as OR/ CR of vehicles, Certificate of Ownership and Land Titles must be kept in a secured vault and shall be properly recorded in a logbook.


11. Only authorized persons shall be allowed to access these files and the Loans Clerk/ C.I. must always monitor and properly record the whereabouts of these files.


12. C.I./ Collectors are responsible to make constant follow-up and make collections to those loans that have been released.

Types of Loan - FICCO

With certain limitations, a member may avail of several loans at the same time depending on his capacity to pay, the collateral he can offer, and his classification. A member’s capacity to pay and the collateral he offer is subject to proper evaluation by the management and the Credit Committee. The classification is based on his track record as a member.

On the assumption that a member has the capacity to pay and can offer appropriate collateral, he can avail of the following loans in accordance with his classification, thus:

A. For Class A1+, A1 & A;

1. Regular Loans;
a. Productive Loan
b. Provident Loan
2. Regular Agricultural Loans;
a. Rice and Corn Crop Loan
b. Sugar Cane Crop Loan
c. Cassava Crop Loan
d. Other Crop Loan
e. Agricultural Lot Purchase
3. Commercial Loans;
a. Small Enterprise Assistance Loan
b. Commercial Credit Line
c. Vendors-Drivers Assistance Loan
4. Financing Loans;
a. Appliance Loan
b. Motor Vehicle Loan
c. Motorcycle Loan
d. Cell phone Loan
5. Travel;
a. Travel & Tours Loan
b. Special Travel & Tour Loan
6. Housing;
a. Housing Assistance Loan
b. FICCO Ville Lot Purchase
c. House Construction Loan
7. Commodity Loans;
a. Rice Loan
b. SM Gift Check Loan
c. Gaisano Gift Check Loan
d. Ororama Gift Check Loan
8. Medical Loans;
a. Medical Loan
b. Optical Loan
c. Dental Loan
d. Newborn Screen Test
9. Educational Loan
10. Salary Loan
11. Petty Cash Loan
12. Jewelry
13. Calamity
14. Memorial Lot &/or Services Loan

B. For Class B (re-loan);

1. Regular Loan (Productive or Provident) or
Regular Agricultural Loan or
TTL or
LAD
2. Petty Cash Loan
3. Rice Loan
4. Calamity Loan
5. Jewelry Loan
6. Medical Loan
7. Newborn Screen Test
8. LATD
9. LARS

C. For Class B (First-Time-To-Borrow), C & D;

1. Regular Loan (Productive or Provident) or
Regular Agricultural Loan or
Loan Against Deposits
2. Petty Cash Loan
3. Rice Loan
4. Jewelry Loan
5. Calamity Loan
6. Loan Against Time Deposit
7. Loan Against IS/RS

D. For Class E and members within Probationary Period;

1. Loan Against Deposit or
Rice Loan
2. Loan Against Time Deposit
3. Loan Against IS/RS

Member Classification - FICCO

Class A1 Plus :

• Must have P50,000 minimum share capital
• 5 years minimum membership at “A” classification status
• Zero arrears in loan repayments
• Must have availed of FICCO Loan for five cycles
• Must have invited at least ten (10) new members who became regular Class A members
• Must have volunteered their time and services to FICCO by either as BOD, ELECOM, CRECOM, AIC, or EDCOM for at least one term. Services rendered during annual General Assemblies will be credited,
• Must have maintained the required ten percent (10%) annual growth of their Share and Savings or at least Ten Thousand Pesos ( Php 10,000.00) whichever is lower.
• A member who has maintained an A1 classification status for the last 3 years should merit certain privileges such as:
a.) Longer repayment term, automatic loan ceiling increase of ten to twenty-five percent (10%-25%) subject to the requirement that the new loan monthly amortization shall not exceed one hundred fifty percent (150%) of the immediately preceding loan amortization.
b.) One (1) co-maker
c.) Higher multiple of one step than the rest of the members subject to the provision on collaterals and amortization guidelines.

Class “A1” :

• Members who have established good loan track record for at least one (1) year, if term is more than one (1) year the reckoning will be the term of the loan;
• Pay loans on or before due date;
• Monthly depositor;
• With at least 10 % increase or P5,000 in share & /or savings deposits whichever is lower;
• Has attended at least one of the last 2 general assemblies.
• Must have good character and has the Capacity to pay

Class “A”:

• Members who have established good loan track record for at least one (1) year, if term is more than one (1) year the reckoning will be the term of the loan;
• Pay loans monthly but avails the 3-day grace period;
• Monthly depositor;
• With at least 10 % increase or P5,000 in share & /or savings deposits whichever is lower;
• Has attended at least one of the last 2 general assemblies.
• Must have good character and has the capacity to pay


Class “B”:

• Members whose loan record is less than 1 year, or
• Pay loans within the month but exceeds the 3-day grace period;
• Failed to deposit from one to two months during the 4-month reckoning period;
• Has attended the last general assembly.

Class “C”:

• Members who failed to pay loans for two months during the term of the loan;
• Failed to deposit for two months during the 4-month reckoning period;
• Has attended the last general assembly.


Class “D”:

• Members who failed to pay loans for two months during the term of the loan;
• Failed to deposit for three months during the 4-month reckoning period;
• Failed to attend the last general assembly

Class “E”:

• Members who failed to pay loans for three (3) months or more during the term of the loan;
• Failed to deposit for one or more months during the four-month reckoning

Who can borrow at FICCO?

All bonafide members who have complied with all of the following requirements;

• Attended pre-membership seminar;
• Paid seminar fee of P30;
• Paid membership fee of P30 and ID of P20;
• Enrolled and paid one hundred forty (P140) as required membership fee & one (1) month premium for the FICCO- Mutual Benefit Association
• Paid at least one (1) share or P 100 and pledge to complete minimum share capital requirement of thirty (30) shares or 3,000 within one year;
• Deposited five hundred (P500) pesos in his/her savings deposit;
• Have undergone the probationary period of four (4) months from the date of initial share deposit (except those availing of loans against their deposits, which may be done even during the probationary period); and
• Have attended a loan briefing that covers a review of the core coop values and current loan policies.

Loans offered online?

If you are a member of FICCO who is out of the country right now.

1. How would you react if FICCO will offer loan applications online? and evaluate your loan application online?
2. Would you be willing to avail loans online?
3. Are you convenient with bank transfer? loan releases and loan payment?

If you have any comments on this please email or comment below.

Why is it better to deposit in Cooperatives than commercial banks?

There are rising awareness among regular citizen to realize that it is better to deposit money in cooperatives than commercial banks. We'll there are also a number of people testified banks are better options to park money.

I believe there are really advantages and disadvantages in deposits whether it be in commercial bank or in the cooperative. Allow me to cite a few:

Deposits in Cooperatives:

• "Tax Free". Deposits in a cooperatives are not subject to withholding tax.
  
• Higher Interest Rates. Normally deposits in cooperatives have higher yields than those with the banks. Banks offer 1-2% p.a. interest rates while cooperatives rates starts at 4% and up.
  
• "No Deposit Insurance" as of the time of this writing most of the cooperatives developed only an inhouse insurance system on members deposit. There were a series of studies conducted to create something like PDIC but until now there is nothing that can be evidently visible. Lately, there is what we call CODIS (Cooperative Deposit Insurance System) they were able to submit requirements at government agencies regarding their registration but no news about it since submission last Jan 09 if I am not mistaken.
  

Deposits in Banks

• Subject to 20% final withholding tax. a depositor once told to earn a certain rate on their savings deposit must always remember that the actual amount credited on their account is only 18% of it.
• Interest rate at 1 - 2% p.a. only.
• Deposits insured up to P500,000 by the Philippine Deposit Insurance Commission (PDIC)
  

If you ask me about my choice, well my biased is with cooperatives simply because by depositing in cooperatives we are infact helping ourselves. Bank owners are large capitalist who are enrich if we choose to deposit with them. I'm not saying they are bad rather I am campaigning that cooperatives gives us many add on aside from a higher interest on deposits. Some cooperatives even offer hospitalization, death benefits, savings protections, as well as insurance on loans. Banks normally don't give us these advantages and they keep their gains in contrast to our Patronage Refunds which is given every year.

Does that help? If you still have doubts about coops, email me.

DCCCO Deposit Products and Interest Rates

Dumaguete Cathedral Credit Cooperative or DCCCO

Regular Savings

• average daily balance to earn interest - P1,000.00


• minimum required for MDAB purposes at the time of death – P500.00


• earns interest of 3% computed monthly compounded quarterly

ATM Savings:

• average daily balance to earn interest – P 1,000.00


• balances falling below P 500.00 is charge service fee of P5.00


• earns interest of 3% computed monthly compounded quarterly

Equity Savings

• average daily balance to earn interest - P1,000.00;


• can be used for loaning purposes if the share capital/fixed deposit reaches to PhP 20,000.00


• non-withdrawable unless member’s loan is fully paid or for full payment of loan

Time Deposit

• minimum deposit of P5,000.00 for minimum placement of 30 days. Interest is 3.5% - 5% depending upon the amount of deposit and the inflation rate.

Kiddie Savers

• for kids 13 years old and below


• with rewards for highest depositors


• can avail of the scholarship program, MDABF & medical/dental care benefits

Teen Savers

• for teens aging over 13 to 17 years old


• same terms as Kiddie Savers

DCCCO Loan availments

Eligibility for a loan from Dumaguete Cathedral Credit Cooperative (DCCCO) does not confer automatic right on the member to avail of a loan. The member's loan privilege would depend on his credit standing and status as a member.



1. New member less than three (3) months can avail of loan at a maximum amount equivalent to his/her share capital.
   

2. New member more than three months can avail of loan twice of his/her share capital.
   

3. Member in Good Standing (MIGS) depends on his/her classification.
   

4. Non-Member In Good Standing (Non-MIGS) depends on the assessment of the loans division personnel.
   

5. Member can also avail of loan against his/her time deposit at a maximum amount equivalent to 90% thereof.

What are the types of deposits?

There are several deposit products of FICCO, they're listed below:

1. Savings Deposit. Deposit that can be withdrawn anytime, provided it is not encumbered with any loans with FICCO. Encumbered deposits are withdrawable only upon payment of loan is completed.
   
2. Time Deposit. This is otherwise known as term deposit. has a special higher rate than the regular savings deposit. FICCO normally offers a one month rollover TD to its members.
3. Special Deposits. Are deposits from associate members of FICCO. This is withdrawable anytime
   
4. Retirement Savings. a special type of deposits designed for members retirement for a period of 5 years.
   
5. Installment Savings. a special type of deposit designed for members installment savings for a period of 5 years
   
6. Young Savers. Deposit for kids 3 y.o. to 13 y.o.
   
7. Youth Savers. Deposit for teens ages 14 y.o. - 17 y.o.
   
8. Preferred stocks. capital deposits from associate members of FICCO is under this account.
   
9. Common Stock (commonly known as Share Capital). Deposit that cannot be withdrawn anytime. This deposit is withdrawable only if one wishes to terminate his membership with FICCO.

Note: Under the Cooperative Code of 2008 R.A. 9520, the deposits from members of the cooperative is not subject to the 20% withholding tax.

How to become FICCO member?

Becoming a FICCO member is relatively easy, you only do the following steps and comply the following requirements:

1. Ask for an application for membership.
2. Submit application for membership and the requirements (i.e. Brgy. certification, Residence Certificate). Upon completion of step 1 and 2 you are given a schedule to attend Pre-membership Seminar (PMS).
   
3. Attend the PMS on your scheduled date. The normal PMS day is Saturday 1:00-4:00Pm, subject to questions and answer. Note: before the PMS start you are normally given the Specimen signature card and MBA application. You may fill it up in advance.
4. Deposit the required amounts P 100 share, P 100 savings, P 50 MBA membership fee, P90 MBA contribution (1 mo and P90 per mo. thereafter).
5. Get your savings and share capital passbook 3 to 4 days after or as may be advice by FICCO staff.

The above steps is very easy to comply. There should be no reason for anybody to ask for exemption of PMS. As this component is very vital to new members on the principles of cooperativism and the philosophy of cooperatives.

On the other hand, next part is more challenging to a new member. this is to maintain the habit of savings for the next 4 months and to raise P 3,000 in order for him to become a regular member. Over this a member has to maintain P 90 for MBA per month. Mutual Benefit Association (MBA) is the FICCO micro insurance for its members. Insurance is very important for us, I have written an article on this previously titled "Is insurance imporant?"

Roach Not Satisfied with Manny Today

His (Pacquiao’s) performance today isn’t the way he’s gonna beat Cotto. But that’s part of the process, That’s part of training camp and that’s why we’re here. That’s something we’re working on – to get him ready for the fight

This was the comment made by Freddie Roach after the sparring match between Manny and Shawn Porter at the Baguio gym. Roach said he leaned too much on the ropes and Porter was able to caught Pacquiao with good right leads, a couple of straights to the face, and left jabs identical to techniques of Cotto. Roach in short is not satisfied with the performance of Manny and plans to close the gym for more focus. He rated Manny's training at 40% considering his performance with Porter.

Every fighter can't just be underestimated Cotto being the younger fighter has an advantage on his own. Manny has to make up with his training and shouldn't give the other the chance to pin him down.

Like many others, I can't wait to see PacMan and Cotto in the ring.